NeighborWorks Montana Program

NeighborWorks Montana (NWMT) Statewide Down Payment Assistance Second Mortgage Programs

Brief Decription: For many borrowers, the barrier to owning a home is saving up the funds necessary to cover the one-time closing costs that must be paid up-front when purchasing a home. MBOH partners with cities, counties, non-profits, lenders, employers and others who are willing to step in and help make homeownership happen. Most of these programs have a limited geographic area in which they provide assistance. NeighborWorks Montana can provide down payment assistance anywhere in the state not covered by other programs. NHS offers various programs, some deferred and others amortized. Check their web site for detailed information http://www.nwmt.org/
For a list of other geographically-defined programs, click here .

Borrower Eligibility Criteria:
For Amortized Second Mortgage Program for Low and moderate income Borrowers and TANF Program for households at or below 200% of poverty level
Income limits: up to 125% of median family income per household size (150% for Native Americans) for Amortizing Second Mortgage Program (ASMP); limit of 200% of poverty for TANF Program with at least one child with legal relationship under age 18 in household
First-time homebuyer(s); not mandatory for Amortizing Second Mortgage Program; single head of household with dependent children (mandatory for TANF program), or have a disabled family member.
Home must be primary residence for the duration of the loan
Asset limitations of $5,000 liquid cash, and $70,000 total family assets
Must have completed NWMT-approved homebuyer education
If already receiving TANF cash assistance, may not be eligible for TANF program.

Second Mortgage Loan Criteria:
ASMP loan range $1,500-$5,000; TANF loan range $3,000 to $7,500 (may go to $20,000 where genuine need exists)
Interest rate and term varies by borrower's income range, from 1% and 30 years for borrowers at or below 50% area median income (AMI) to 6.75% (changes quarterly ­ check web site) and 15 years for those at 81% AMI or higher
Total purchase price cannot exceed $237,031 ($200,160 for FHA loans)

Underwriting Criteria:
ASMP maximum LTV of 105% without valid compensating factors
ASMP and TANF maximum ratios of 29/41 unless valid compensating factors apply
Packaging, Title Insurance and recording fees apply.

Down payment Requirement:
For ASMP, borrower must provide a minimum of $500 of own funds

Application Process:
For ASMP, send to NWMT office in Great Falls using reservation checklist; allow 2 weeks processing time
For TANF, requires specific TANF loan application in addition to lender 1003 form. Allow four weeks processing time.

For more information, contact NeighborWorks Montana http://www.nwmt.org/

updated 6/5/08

This is a summary of the MBOH program only. For a complete copy of the terms and conditions see Mortgage Purchase and Servicing Guide and the Terms and Conditions of the set-aside