Down payment assistance and first time homebuyer programs in Montana

November 19, 2025

Down Payment Assistance

These programs can only be handled by approved lenders. If you would like help from a local realtor familiar with the programs and lenders with access, fill out this form here and I will connect you with one.

Montana

Hey there! If you're thinking of buying a home for the first time, and haven't saved up for a down payment, you still might be able to get it done.

Before I jump into the programs, let me briefly explain how down payment assistance works.

How it works

Down payment assistance comes in two forms: a grant, or a loan

A grant doesn't require repayment.

A loan does require repayment, but there are 3 different ways:

Monthly repayment. This is where they charge you interest and a monthly payment until the loan is paid off

Silent second. This is where they don't charge you interest, they don't charge you monthly payments, they just require that you pay it back when you sell the home.

Forgivable. This is where they forgive the loan as long as you meet certain criteria. A common requirement is that you live in the home as your primary residence for a set number of years. Once you've completed the timeframe, they forgive your loan and you don't need to pay it.

Approved lenders only

Now that we have that out of the way, let's jump in! Below are the local programs available to help make homeownership more accessible.

Montana Board of Housing (MBOH) Regular Bond Loan Program

What It Offers: Provides low-interest mortgages with down payment assistance.

Who Qualifies: First-time homebuyers and those purchasing in targeted areas.

Income Limits: Based on county and household size.

Repayment: Deferred second mortgage due upon sale or refinance.

Website: https://commerce.mt.gov/Housing/Homeownership/Down-Payment-Assistance

NeighborWorks Montana Down Payment Assistance

What It Offers: Provides gap financing for down payment and closing costs.

Who Qualifies: Homebuyers with low to moderate incomes.

Income Limits: Based on area median income (AMI).

Repayment: Low-interest second mortgage.

Website: https://www.nwmt.org/down-payment-and-closing-cost-assistance/

Human Resource Development Council (HRDC) Down Payment Assistance

Assistance: Offers up to $30,000 in down payment assistance in the form of a 0% interest, deferred payment loan.

Eligibility: First-time homebuyers earning 80% or less of the Area Median Income (AMI) in Gallatin, Park, and Meagher Counties.

Requirements: Completion of HRDC’s Homebuyer Education class and one-on-one counseling.

More Information: https://thehrdc.org/housing/homeowner-assistance/down-payment-assistance/

City of Billings First-Time Home Buyer Program

Assistance: Provides zero-interest, deferred payment loans up to $15,000 to assist low-income households in purchasing their first home.

Eligibility: Applicants must meet income requirements and other program criteria.

Funding Status: As of January 10, 2025, funding has been fully committed; the next allocation is expected in July 2025.

More Information: https://www.billingsmt.gov/476/First-Time-Home-Buyer

Trust Montana Co-Purchase Program

Assistance: Offers down payment assistance for households earning less than 80% of the Area Median Income.

Availability: Application process expected to open in winter; income-eligible households can apply for assistance.

More Information: https://trustmontanaclt.org/co-purchase-program/

For other counties and cities in Montana, it's advisable to contact local housing authorities or community development offices, as additional programs may be available. Program availability and terms can change, so it's essential to verify the most current information directly with the administering agencies.