Achieve Your Homeownership Goals with Bond Advantage Assistance
The Montana Board of Housing (MBOH) understands the challenges that many prospective homebuyers face when it comes to making substantial down payments and covering closing costs. While monthly mortgage payments might be manageable, the upfront expenses associated with buying a home can be a significant barrier to homeownership. To address this issue and provide assistance to individuals trapped in the cycle of renting, MBOH has established the Bond Advantage Down Payment Assistance Program.
The Bond Advantage Down Payment Assistance Program serves as a valuable resource for borrowers who qualify for MBOH financing but lack the necessary funds for down payments and closing costs. This program collaborates with various organizations throughout Montana to offer eligible applicants financial support. Qualified individuals can receive assistance of up to 5% of the purchase price or a maximum of $10,000, whichever amount is less. This assistance is provided in the form of a junior loan, and it is an integral part of securing a Montana Housing 30-year first mortgage. Importantly, both loans feature the same fixed interest rate.
Eligibility Requirements for the Bond Advantage Down Payment Assistance Program:
- Credit Score: Borrowers must have a minimum mid-credit score of 620 to be eligible for the program. In cases where applicants have no established credit history, they may still qualify as long as the loan meets the underwriting standards set by the insurer or guarantor of the first-position loan. This flexibility allows individuals with limited credit histories to access the program’s benefits.
- Homebuyer Education: All applicants are required to complete a homebuyer education course. This educational component is essential in ensuring that borrowers have a comprehensive understanding of the home-buying process, financial responsibilities, and homeownership responsibilities. It empowers prospective homeowners with the knowledge to make informed decisions.
- Cash Contribution: Borrowers must be prepared to contribute a minimum of $1,000 in cash toward the purchase. This contribution demonstrates their commitment to homeownership and serves as a valuable investment in their future.
- Primary Residence: MBOH mandates that the home being purchased with assistance from the Bond Advantage Down Payment Assistance Program must serve as the borrower’s primary residence. This requirement emphasizes the program’s goal of helping individuals achieve stable and sustainable homeownership.
The Bond Advantage Down Payment Assistance Program is a testament to MBOH’s commitment to expanding access to homeownership for Montanans. By addressing the financial hurdles associated with down payments and closing costs, this program empowers qualified borrowers to take the crucial step towards owning their homes. Additionally, the program’s flexibility in credit score requirements and dedication to providing comprehensive homebuyer education make it an inclusive and supportive resource for those seeking to escape the renters’ trap and embark on their homeownership journey.