Montana First-Time Home Buyer Programs and Assistance
Montana Board of Housing (Montana Department of Commerce, Montana Housing) currently lists 3 programs for Montana buyers, with down payment help up to $15,000 through Bond Advantage Down Payment Assistance Program. Figures below were read from the agency's own pages on September 11, 2026.
Montana first-time buyer programs open now
Montana Board of Housing (Montana Department of Commerce, Montana Housing) is the state's housing finance agency (homebuyer programs page). It runs 3 down payment or closing-cost assistance programs. Not independently confirmed on the pages reviewed;
| Program | Type | Amount | First-time only | Min. credit | Income limit |
|---|---|---|---|---|---|
| Bond Advantage Down Payment Assistance Program source | Second mortgage | Up to 5% of sales price, maximum $15,000 | Check | 620 | See program page |
| MBOH Plus 0% Deferred Down Payment Assistance Program source | Deferred second loan | Up to 5% of sales price, maximum $15,000 | Check | 620 | $80,000 for a 1-2 person household; $90,000 for a 3-or-more person household |
| Set-aside Programs (Montana Board of Housing) source | Program | Gap financing ranging from about $1,500 to $45,000 depending on location and buyer need | Check | n/a | Designed for borrowers earning on average 80% of median income |
- Bond Advantage Down Payment Assistance Program. Terms: 15-year amortizing second loan with low monthly payments, same fixed rate as the first mortgage Must pair with: Montana Board of Housing 30-year first mortgage (Regular Bond Program) Homebuyer education: required Program page
- MBOH Plus 0% Deferred Down Payment Assistance Program. Terms: 0% interest second loan, no monthly payments; due upon transfer/sale of the property or refinance/payoff of the first loan Must pair with: Montana Board of Housing 30-year first mortgage (fixed rate) Homebuyer education: required Program page
- Set-aside Programs (Montana Board of Housing). Terms: A participating nonprofit or local program provides down payment assistance funds layered under a Montana Board of Housing Regular Bond Program first mortgage, at a set-aside interest rate lower than the standard rate Must pair with: Montana Board of Housing Regular Bond Program first mortgage Homebuyer education: required Where: Varies by partner program: statewide-eligible partners include NeighborWorks State HOME Deferred 2nd Mortgage, HomeStart Program (FHLB), HUD Section 184 Home Loan, Dream Makers Matching Grant Funds (veterans only); local partners include CAP NWMT Kalispell Community Land Trust, Missoula Combined HRDC XI HOME Funds, Bozeman District IX HOME Funds, City of Billings First Time Homebuyer Program, and Montana Street Homes CLT Program page
Mortgage credit certificate in Montana
Montana offers a mortgage credit certificate (Montana Board of Housing Mortgage Credit Certificate (MCC) Program), a federal tax credit worth 20% of the mortgage interest you pay each year, for as long as you live in the home. MCC program page
City and county programs in Montana
Local governments run their own down payment funds on top of the state programs. These can be combined with a state loan in most cases; each has its own income limit and area.
- City of Billings: City of Billings First Time Homebuyer Program. Zero-interest, deferred-payment loan; exact dollar cap not confirmed on an official City of Billings or Montana Board of Housing page in this pass. Deferred second loan. Income limit: Targeted to low-income homebuyers. First-time buyers only. Official page
- Missoula: Missoula Combined HRDC XI HOME Funds. Gap/down payment financing amount not confirmed on an official page in this pass. Program. Official page
How little you can put down
You do not need 20% down. Conventional loans go as low as 3% (through programs like Fannie Mae HomeReady and Freddie Mac Home Possible), FHA loans start at 3.5%, and VA and USDA loans can require nothing down. On Montana's median-priced home (about $505,600), 3% down is roughly $15,168. Putting 20% down lets you skip private mortgage insurance, but most first-time buyers put down far less.
Who counts as a first-time buyer
For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years, so many repeat buyers qualify again. Montana programs often add income and purchase-price limits, which is another reason to confirm the details with Montana Board of Housing.
Stack a buyer rebate on top in Montana
Down-payment assistance and a buyer commission rebate are two different things, and in Montana you can use both. Assistance from Montana Board of Housing helps with your down payment and closing costs; a buyer rebate returns about 2% of the price to you at closing (roughly $10,112 on a median-priced home), which can cover much of your closing bill.
Frequently asked questions
What first-time home buyer programs are available in Montana?
Montana Board of Housing (Montana Department of Commerce, Montana Housing) lists 3 programs: Bond Advantage Down Payment Assistance Program, MBOH Plus 0% Deferred Down Payment Assistance Program, Set-aside Programs (Montana Board of Housing). Down payment help runs up to $15,000. City of Billings, Missoula also run local down payment programs.
How much down payment assistance can you get in Montana?
Up to $15,000 through Bond Advantage Down Payment Assistance Program (second mortgage). Other Montana programs offer different amounts; see the table on this page for each one.
Do you have to be a first-time buyer to qualify in Montana?
Not independently confirmed on the pages reviewed; Montana Board of Housing's Regular Bond Program loans (required as the base loan for its down payment assistance) are standard state Housing Finance Agency mortgage-revenue-bond loans, which typically use the federal 3-year first-time-homebuyer rule with an exception for federally targeted areas and qualified veterans, but this was not verified on an official Montana Housing page in this pass.
How much down payment do you need in Montana?
As little as 3% on a conventional loan, 3.5% on an FHA loan, and 0% on VA or USDA loans. On Montana's median-priced home (about $505,600), 3% is roughly $15,168. You do not need 20% down, though 20% lets you avoid mortgage insurance.
Who counts as a first-time home buyer?
For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years. Some Montana programs also have income and purchase-price limits, so check with Montana Board of Housing.
Can I combine assistance with a buyer rebate in Montana?
Yes. A buyer commission rebate is separate from down-payment assistance and is legal in Montana. Assistance helps with your down payment and closing costs up front; a rebate returns about 2% of the price at closing, which you can put toward closing costs. You can use both.
Official sources
- Montana Board of Housing (Montana Department of Commerce, Montana Housing)
- Set-aside Programs | Montana Department of Commerce
- Mortgage Credit Certificate Program | Montana Department of Commerce
- Consumer Financial Protection Bureau: down payment options and how to prepare
Montana program details last verified against Montana Board of Housing on September 11, 2026.
Read the full guide to the cash you need to buy →
This is general information, not financial advice. Program details, limits, and loan terms change; confirm the current rules with Montana Board of Housing and your lender before you rely on them.
See first-time buyer programs in all states