First-Time Homebuyer Programs
First-Time Homebuyer Programs in Montana (2026)
Montana offers 2 first-time homebuyer programs that can reduce your upfront costs on a $448,600 home. The state's loan programs start with as little as 3% down — $13,458 — and the MBOH Down Payment Assistance Program can cover up to $10,000 of that.
Montana First-Time Buyer Programs at a Glance
2 state-administered programs currently available
Montana Board of Housing Regular Bond Program
Montana Board of Housing (MBOH)
Max Loan
$832,750
Min Down Payment
3% ($13,458)
Income limit: Up to $135,000 depending on household size and county
First-time requirement: Must not have owned a primary residence in the past 3 years; minimum 620 credit score
Available through MBOH-approved lenders statewide; homebuyer education required
MBOH Down Payment Assistance Program
Montana Board of Housing (MBOH)
Max Assistance
$10,000
Repayment
Deferred — due on sale, refinance, or payoff of first mortgage
Income limit: Same as MBOH first mortgage income limits
First-time requirement: Must use MBOH first mortgage
Up to $10,000 for down payment and closing costs
Down Payment Scenarios at Montana's Median Price
Based on $448,600 median home price
| Loan Type | Down % | Down Amount | Loan Amount |
|---|---|---|---|
| State Program (Montana Board of Housing Regular Bond Program)state program | 3% | $13,458 | $435,142 |
| FHA Loan | 3.5% | $15,701 | $432,899 |
| Conventional (3%) | 3% | $13,458 | $435,142 |
| Conventional (5%) | 5% | $22,430 | $426,170 |
| Conventional (20%) | 20% | $89,720 | $358,880 |
| DPA offset: MBOH Down Payment Assistance Program can cover up to $10,000 of your down payment — reducing your 3% out-of-pocket from $13,458 to as low as $3,458. | |||
FHA vs. Conventional Payment Calculator
Pre-loaded with Montana's median price of $448,600 and current rate of 6.4%
Mortgage Estimator
Montana rates pre-loaded
Monthly Payment (P&I)
$2,525
principal & interest only
Estimate only — excludes insurance, PMI, HOA.
Full Calculator →Montana Conforming Loan Limits (2026)
Loans above these limits require jumbo financing with stricter credit and reserve requirements
Standard Limit
$832,750
Most counties in Montana
High-Cost Areas Limit
N/A
No FHFA high-cost designations in Montana
How Much Home Can You Afford in Montana?
Most programs require a debt-to-income ratio under 45%. Enter your income to see what you qualify for at 6.4%.
Mortgage Affordability Calculator
See what you can comfortably afford — not just what a lender will approve — at 6.4% with your income and debts.
Open Calculator →Private Mortgage Insurance (PMI) in Montana
Required on conventional loans with less than 20% down — typically 0.5%–1.5% of the loan per year until you reach 20% equity
At 5% Down
$355/mo
est. PMI at 1% rate
At 10% Down
$236/mo
est. PMI at 0.7% rate
PMI cancels automatically when your loan balance reaches 80% of original home value (78% per law). FHA loans carry MIP for the life of the loan unless you put 10%+ down.
PMI Calculator
Calculate your monthly private mortgage insurance cost and when it cancels — pre-loaded with Montana's median home price of $448,600.
Open Calculator →How to Apply for Montana First-Time Buyer Programs
- 1
Check your credit and DTI
Most Montana programs require a minimum 620 credit score and DTI under 45%. Pull your free credit report at AnnualCreditReport.com and calculate your debt-to-income ratio before shopping lenders.
- 2
Find an approved lender
Montana's state programs are only available through lenders approved by Montana Board of Housing (MBOH). Visit the program website for the lender directory — not all mortgage lenders participate.
- 3
Complete homebuyer education
Many Montana programs require a HUD-approved homebuyer education course before closing. These take 6-8 hours and can be completed online for $25-$75. Complete this early to avoid closing delays.
- 4
Get pre-approved
Pre-approval locks in your rate and confirms program eligibility. For Montana programs, bring 2 years of tax returns, 2 months of bank statements, recent pay stubs, and photo ID. The lender handles the state program paperwork.
- 5
Apply for down payment assistance (if using DPA)
Apply for the MBOH Down Payment Assistance Program at the same time as your mortgage — they must be coordinated. The Montana Board of Housing (MBOH) processes DPA separately from the primary lender. Deferred — due on sale, refinance, or payoff of first mortgage.
- 6
Close and record
At closing, your DPA funds are applied directly to your down payment and closing costs. Budget 45-60 days from application to keys. Closings in Montana do not require an attorney.
FHA Loan Payment Calculator — Montana
Pre-loaded with Montana median price and current rate at 3.5% FHA minimum down.
Mortgage Estimator
Montana rates pre-loaded
Monthly Payment (P&I)
$2,708
principal & interest only
Estimate only — excludes insurance, PMI, HOA.
Full Calculator →Down Payment Savings Calculator
How long to save for a Montana home at $448,600
Down Payment Planner
Montana median pre-loaded
Your Savings Plan
Timeline
15.0 yrs
saving $500/mo
No PMI at 20% down
20% or more avoids private mortgage insurance entirely.
Estimate only — does not include investment returns on savings.
Full Calculator →Frequently Asked Questions
- Who qualifies as a first-time homebuyer in Montana?
- Most Montana programs define first-time buyers as those who have not owned a primary residence in the past 3 years. Must not have owned a primary residence in the past 3 years; minimum 620 credit score. This means you can qualify even if you previously owned a home.
- What is the minimum down payment for first-time buyers in Montana?
- Montana's state mortgage programs allow down payments as low as 3% — that's $13,458 on a $448,600 home. FHA loans also allow 3.5% down ($15,701). Conventional loans with PMI typically start at 3-5%.
- How much down payment assistance is available in Montana?
- Montana's MBOH Down Payment Assistance Program offers up to $10,000 in down payment assistance. Repayment terms: Deferred — due on sale, refinance, or payoff of first mortgage. Income limits apply: Same as MBOH first mortgage income limits.
- Can I use Montana programs with an FHA loan?
- Many Montana first-time buyer programs are compatible with FHA loans. FHA allows 3.5% down with credit scores as low as 580, making them attractive for buyers with limited savings. At the current Montana median price of $448,600, FHA's 3.5% down is $15,701. Confirm compatibility with your specific state program administrator.
- What credit score do I need for Montana first-time buyer programs?
- Most state mortgage programs require a minimum credit score of 620–640. FHA loans allow scores as low as 580 for 3.5% down, or 500–579 for 10% down. Higher credit scores (680+) typically unlock the best rates under Montana's program. Your DTI ratio (total monthly debt ÷ gross income) generally must be below 45-50%.
- How long does the Montana homebuyer program process take?
- State-backed programs add 2-4 weeks to a standard 30-day closing because they require income verification and approval from the state agency, not just the lender. Plan for 45-60 days from application to close. Working with a lender approved by Montana Board of Housing (MBOH) speeds this process significantly.
- Are Montana first-time buyer programs available statewide?
- Available through MBOH-approved lenders statewide; homebuyer education required Income and purchase price limits vary by county, so buyers in high-cost areas may face tighter eligibility. Some programs may have waitlists — apply early.
Related Calculators
FHA Loan Calculator
See your full FHA payment with MIP for a $448,600 Montana home
Down Payment Savings Calculator
How long to save your down payment at different monthly savings rates
DTI Calculator
Check if your debt-to-income ratio qualifies for state programs
PMI Calculator
Estimate your private mortgage insurance cost and when it drops off