Federal Housing Programs

USDA RURAL DEVELOPMENT PROGRAMS

USDA Rural Development loans and grants are available to assist rural Montana with Single Family Housing, Multi-Family Housing, and essential Community Facilities needs. Rural Development partners with local lenders, community groups and local, state and federal funding sources.

RURAL DEVELOPMENT SINGLE FAMILY HOUSING PROGRAM

The Single Family Housing program provides homeownership opportunities to very low, low and moderate-income rural residents through several loan, grant and guarantee programs. The program also provides loans and grants to individuals to finance the vital improvements necessary to make their homes decent, safe, and sanitary.

RURAL DEVELOPMENT MULTIFAMILY HOUSING PROGRAMS
Section 515 Rural Rental Housing Loans

Increased home prices have resulted in a higher percentage of renters throughout the nation. More facilities are needed to meet the demand. The multi-family housing Section 515 program provides financing to build, purchase or repair apartment style housing for low to moderate income residents in rural communities with a population of up to 20,000 people. Financing is also available for rental assistance subsidies.

The housing must be modest in size, design, and cost, but adequate to meet the tenants needs. Rent charges must be within limits that eligible occupants can afford to pay.

Eligible applicants include individuals, trust, associations, general partnerships, limited partnerships, State or local public agencies, profit, and nonprofit corporations. Nonprofit corporations may be organized on a regional or multi-county basis. Loans to non profits may be up to 100 percent of the appraised value or development cost, whichever is less.

GUARANTEED LOAN PROGRAMS

A number of guaranteed loan programs at or below market rates are available for qualified home buyers. Financial institutions in partnership with Montana Board of Housing make guaranteed loans available to Native Americans and those living in rural settings. The Veterans Administration offers guaranteed loans to eligible service members, veterans, and unmarried surviving spouses.

HUD Section 184 Indian Housing Program The Indian Home Loan Guarantee Program is a new and innovative housing program to enable Native American families and Indian Housing Authorities to gain access to sources of private financing. An Indian who will occupy the property as a principal home and has met certain credit and underwriting standards is an eligible borrower. An Indian Housing Authority is an eligible applicant as well. IHAs may borrow funds for the development of single family homes that may be subsequently sold to eligible borrowers. To apply, visit any approved lender (financial institution) and apply for a mortgage loan.

The Montana Board of Housing set aside $1,000,000 in recycled mortgage funds to provide the permanent financing for qualifying lower income individuals for single family homes located on trust land on an Indian Reservation that are guaranteed by HUD through section 184 for Native Americans. The Board worked with local banks, Tribal representatives, Bond Counsel, State and Regional HUD officials to get special consideration and guarantees from the Secretary of HUD in Washington D.C. to enable the Board to participate in this program.

    Contact:

    Montana Board of Housing
    (406) 841-2840

VA Guaranteed Home Loans for Veterans The U.S. Department of Veteran Affairs (VA) guarantees loans made by mortgage lenders to eligible military veterans, active duty military service members, certain members of the National Guard and Selective Reserves, and certain un-remarried surviving spouses of deceased veterans. The purpose of a VA Guaranteed loan can be to purchase, build, or improve personal residences, or to refinance an outstanding mortgage on a home. Properties securing VA loans must meet acceptable Minimum Property Standards. The VA does not require a down-payment and the maximum loan amount is determined by the lesser of the appraised value or the cost of the home. "Cash out refinance loans" are limited to 90% of the appraised value of the home. Applicants must be determined to be a satisfactory credit risk and have sufficient income to repay the loan and certify they intend to occupy the property as their permanent place of residence.

To apply for a Certificate of Eligibility for VA Loan Guaranty Benefits, a veteran should complete a Request for Determination of Eligibility, VA Form 26-1880, and submit it with proof of military service to the nearest VA Regional Office. Further information about VA loans:

HUD/FHA MORTGAGE INSURANCE AND CONVERSION PROGRAMS

The Federal Housing Administration helps homebuyers become homeowners through its mortgage insurance programs. A FHA insured loan is available to anyone with a satisfactory credit record, an income sufficient to afford the mortgage payments and adequate savings to cover a low down payment and closing costs. Homebuyers wishing to obtain an FHA insured mortgage should contact any FHA approved lending institution such as a Bank, Mortgage Company, Savings and Loan or Credit Union.

Section 203B Insured Loans This program is limited to owner occupant buyers for the purchase of a new or existing one-to-four unit dwelling. The down payment requirement is 3% of the first $25,000 of the purchase price, 5% of the difference up to $125,000 and 10% of the difference over that amount.

The maximum mortgage FHA can insure depends on local housing prices. For example, the maximum mortgage can range from a low of $86,317 to more than $202,500 depending on the number of units in the dwelling and the County in which it is located. Contact a lender for information on maximum mortgage limits in your area and to apply for a FHA insured mortgage.

Contact: MONTANA DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PROGRAMS