Montana First-Time Home Buyer Guide
Montana First-Time Home Buyer Guide 2026
The Montana Board of Housing’s Regular Bond Program explained, its two down payment assistance loans of up to $15,000, the targeted-area and veteran exceptions, county income and purchase price limits, and who qualifies.
In This Guide
Montana Board of Housing Regular Bond Program
The Montana Board of Housing’s Regular Bond Program is a 30-year, low-interest loan geared toward first-time homebuyers whose income and purchase price are below the posted limits. Because the loans are funded by tax-exempt Mortgage Revenue Bonds, the IRS sets the core eligibility rules.
| Requirement | Regular Bond Program |
|---|---|
| First-time buyer | No principal residence owned in the previous three years — excluding targeted areas and veterans |
| Income | At or below the county limit, counting all household members 18 and older |
| Purchase price | At or below the county limit |
| Occupancy | Must be the borrower’s primary residence |
| Business use | No more than 15% of the home’s total area |
| Loan purpose | Purchase only — no refinancing |
| First mortgage | Must first qualify for an FHA, VA, RD or HUD-184 loan |
| Recapture tax | A possibility when the home is sold |
The home can be anywhere in Montana and can be a single-family home, condo or manufactured home. Manufactured homes must be post-1976, detitled and on a permanent foundation. Source: Montana Board of Housing home loan programs.
MBOH Down Payment Assistance
Both MBOH down payment assistance loans are second mortgages used with an MBOH 30-year first mortgage, and both can cover down payment and closing costs.
| Feature | Bond Advantage DPA | MBOH Plus 0% Deferred DPA |
|---|---|---|
| Amount | Up to 5% of the sales price, max $15,000 | Up to 5% of the sales price, max $15,000 |
| Rate | Same fixed rate as the first mortgage | 0% |
| Repayment | 15-year amortizing loan with monthly payments | No monthly payments; due on sale, transfer, refinance or payoff of the first loan |
| Income limit | County Regular Bond limits | $80,000 for 1–2 people; $90,000 for 3 or more |
| Credit | Minimum 620 for all borrowers | Minimum 620; maximum 45% debt-to-income |
| Buyer cash | At least $1,000, which can be gifted | At least $1,000, which can be gifted |
| Homebuyer education | Required | Required |
Other MBOH Options
| Program | Who It Is For | Key Terms |
|---|---|---|
| 80% Combined Program | MBOH-eligible buyers who want to avoid mortgage insurance | 30-year first at 80% loan-to-value paired with a 20% second from a partnering nonprofit; minimum credit 640 |
| Special Programs | Buyers working with approved nonprofits or local governments, such as Habitat for Humanity, Community Land Trusts and NeighborWorks | Reduced-rate first mortgages; partners generally require income at or below 80% of area median |
| Montana Veterans’ Home Loan Program | Montana residents serving or who served in the armed services or Montana National Guard | Rate 1% lower than market; no income, purchase price or asset limits; loan amount limit $538,036; must never have owned a principal residence |
| Mortgage Credit Certificate | First-time buyers meeting the same IRS rules | Tax credit of 20% of mortgage interest, up to $2,000 a year; cannot be combined with an MBOH loan |
MBOH Income and Purchase Price Limits
These limits apply to the Regular Bond Program, Bond Advantage DPA, the 80% Combined Program, set-aside loans and the Mortgage Credit Certificate. They are from the list dated July 24, 2026.
| County or Area | Income, 1–2 People | Income, 3 or More | Purchase Price Limit |
|---|---|---|---|
| Gallatin Census Tract 7.03 (targeted) | $156,240 | $182,280 | $919,155 |
| Gallatin | $135,075 | $155,336 | $752,036 |
| Stillwater | $134,760 | $157,220 | $789,337 |
| Missoula (targeted) | $129,960 | $151,620 | $764,737 |
| Carbon and Yellowstone | $128,160 | $149,520 | $789,337 |
| Flathead (targeted) | $123,720 | $144,340 | $786,797 |
| Mineral (targeted) | $123,720 | $144,340 | $764,737 |
| Blaine, City of Great Falls, Deer Lodge, Hill, Sanders, Silver Bow, Glacier Census Tract 9402, Lincoln Census Tract 4.02 (targeted) | $123,720 | $144,340 | $692,211 |
| Fallon | $119,800 | $137,770 | $566,354 |
| Lewis and Clark | $117,700 | $135,355 | $566,354 |
| Jefferson | $114,700 | $131,905 | $566,354 |
| Park | $107,194 | $123,273 | $589,596 |
| Ravalli | $106,960 | $123,005 | $585,986 |
| Broadwater, Custer, Daniels, Dawson, Madison, McCone, Powder River, Richland, Sheridan, Sweet Grass, Valley, Wibaux | $103,100 | $118,565 | $566,354 |
| All other counties | $103,134 | $118,605 | $566,354 |
Limits are from MBOH’s income and purchase price limits and its quick reference guide. MBOH counts household income, which can differ from the income a lender uses to qualify you.
Who Qualifies in Montana
| Requirement | Detail |
|---|---|
| Credit (with assistance) | 620 minimum for both down payment assistance loans |
| Homebuyer education | Required for all borrowers using down payment assistance; required on a Regular Bond loan with certain risk factors |
| Minimum cash | $1,000 with down payment assistance, which can be gifted |
| Condominiums | Project saturation under 25%; single-unit approval accepted |
| Loan term | 30 years on the first mortgage |
Source: MBOH’s quick reference guide, dated July 24, 2026.
Montana First-Time Home Buyer Steps
| Step | What Happens |
|---|---|
| 1. Check the limits | Compare your household income and target price against your county’s MBOH limits |
| 2. Check for a targeted area | Targeted areas have higher limits and waive the three-year rule |
| 3. Choose a participating lender | MBOH loans are made through approved participating lenders |
| 4. Pick the loan and assistance | Regular Bond, with Bond Advantage or 0% Deferred down payment assistance if you need it |
| 5. Complete homebuyer education | Required before closing when you use down payment assistance |
| 6. Make an offer and close | The home must be your primary residence |
Montana First-Time Buyer FAQs
Does Montana have a first-time home buyer program?
Yes. The Montana Board of Housing’s Regular Bond Program is a 30-year, low-interest loan for first-time buyers within county income and purchase price limits, made through participating lenders.
How much down payment assistance can I get in Montana?
MBOH’s Bond Advantage and MBOH Plus 0% Deferred programs each provide up to 5% of the sales price, with a $15,000 maximum. The 0% Deferred loan has no monthly payments and is limited to households earning $80,000 (1–2 people) or $90,000 (3 or more).
What are the MBOH income limits?
In counties without their own listing they are $103,134 for 1–2 people and $118,605 for 3 or more, with a $566,354 purchase price limit, per the list dated July 24, 2026. Counties such as Gallatin, Missoula, Carbon and Yellowstone have higher limits.
Who counts as a first-time buyer in Montana?
For MBOH bond programs, someone who has not owned a principal residence during the previous three years. The rule does not apply in targeted areas or to veterans.
What credit score do I need for Montana down payment assistance?
Both MBOH down payment assistance programs require a minimum credit score of 620 for all borrowers, and the 0% Deferred program also caps debt-to-income at 45%.
