Montana Housing pairs its bond-financed mortgages with two down payment options worth up to $15,000 — one repayable, one a zero-interest deferred loan — plus a Mortgage Credit Certificate for ongoing tax savings.
This guide covers what is actually available to first-time buyers in Montana in 2026 — the agency behind these programs, the loans and down payment help on offer, who qualifies, and how to apply. For the wider local picture, see our Montana first-time home buyer guide.
The Montana Housing and its home loan programs
Montana’s first-time buyer programs are run by the Montana Housing (Montana Board of Housing). Like most housing finance agencies, it does not lend directly — instead it offers below-market first mortgages, bundled with down payment help, through a network of approved local lenders. Its main first-mortgage options are:
- Regular Bond Loan Program — a below-market 30-year fixed loan (FHA/VA/USDA/conventional) that pairs with down payment help
- 80% Combined Program — a conventional option for buyers at or under 80% of area median income, with reduced mortgage insurance
Most of these can be built on top of an FHA, VA, or USDA loan, or a conventional loan, depending on the product you pick — and the real value comes when you pair one with the down payment assistance below.
Down payment assistance in Montana
Down payment assistance is the heart of what Montana Housing offers, and Montana gives buyers more than one way to get it. Montana offers a repayable second and a zero-interest deferred second, both capped at $15,000.
- Bond Advantage Down Payment Assistance — repayable second (15-year term, same rate as the first mortgage), up to 5% of the sales price, max $15,000.
- MBOH Plus 0% Deferred DPA — deferred second at 0% interest, up to 5% of the sales price, max $15,000, due on sale/refinance/payoff.
If those terms are unfamiliar, our national guide to down payment assistance explains exactly how grants, forgivable second mortgages, and deferred loans differ — and what each one means when you eventually sell or refinance.
How much help could you get?
On a $300,000 home in Montana, either program can provide up to 5% — the $15,000 cap — toward your down payment. Bond Advantage is repaid over 15 years at your first-mortgage rate, while MBOH Plus charges no interest and requires no payment until you sell or refinance (its income limits are tighter). A minimum $1,000 of your own money is required, though it can be gifted. Confirm current limits with Montana Housing.
Who qualifies in Montana?
Every program sets its own rules, and they change periodically, but the common requirements in Montana look like this:
- Income limits. Income limits vary by county and household size; MBOH Plus caps around $80,000 (one to two people) or $90,000 (three or more).
- First-time status. First-time status is required in non-targeted areas, waived in targeted areas and for qualified veterans.
- Credit score. A minimum of 620 applies. Our guide to credit score requirements covers what moves the needle.
- Homebuyer education. Homebuyer education is required, along with a minimum $1,000 borrower investment (may be gifted).
- Purchase price limits. County purchase-price limits apply and update periodically.
Montana programs worth knowing about
Beyond the standard offerings, Montana aims extra help at specific buyers and places. Watch for:
- MBOH Plus 0% Deferred — the no-interest, no-payment down payment option
- Veterans and target areas — can waive the first-time requirement
Mortgage Credit Certificates in Montana
The Montana Board of Housing operates a Mortgage Credit Certificate program providing a federal tax credit on part of your mortgage interest. A Mortgage Credit Certificate is a federal tax credit worth a percentage of the mortgage interest you pay every year for the life of the loan, and where it is available it can usually be combined with the assistance above — putting money back in your pocket each tax season.
How to apply for Montana assistance
- Set your budget first. Our home affordability guide helps you land on a realistic price range before you start shopping.
- Complete a homebuyer education course. Nearly every Montana program requires one, and it is usually free and available online.
- Find a participating lender. Not every lender originates Montana Housing loans, so ask directly which Montana Housing programs a lender offers and have them run your numbers against a few.
- Get pre-approved and lock in the right program for your income, credit, and target home before you make an offer.
One important note: Montana Housing program funding and terms change from year to year, and some assistance rounds close when the money runs out. Always confirm current amounts and availability directly with Montana Housing before you count on a specific figure. Our first-time home buyer checklist keeps the rest of your process on track.
Montana first-time buyer programs FAQ
Do I have to be a first-time buyer to get assistance in Montana?
First-time status is required in non-targeted areas, waived in targeted areas and for qualified veterans.
What credit score do I need for Montana Housing programs?
A minimum of 620 applies. Keep in mind a program’s own minimum can sit above the loan’s floor, so confirm the exact number with your lender.
Can I use Montana assistance with an FHA, VA, or USDA loan?
Yes. Montana Housing assistance is built to layer on top of a first mortgage, and FHA, VA, and USDA loans are common partners because their own down payment requirements are already low. Your lender structures both pieces so they close together.
Should I choose Bond Advantage or MBOH Plus in Montana?
Both cap at 5% of the price or $15,000. Bond Advantage is a repayable second over 15 years at your first-mortgage rate — simpler to qualify for. MBOH Plus charges no interest and requires no payment until you sell or refinance, which lowers your monthly cost, but it has tighter income limits (around $80,000–$90,000). A Montana Housing lender can confirm which you qualify for based on income.
First-time home buyer grants in Montana
Looking specifically for grant money? Our guide to first-time home buyer grants in Montana covers which programs are true grants, which are forgivable, and the truth about the widely advertised federal grant.