State Housing Programs

Elderly Programs

Reverse Annuity Mortgage Loan Program for Elderly Persons

This program enables elderly Montanans to benefit from an additional income source from the use of their home equity. In addition to other uses, the funds may be used to make repairs or improvements to the home. Eligibility is subject to certain age and income requirements. This loan also requires borrowers to complete a reverse annuity mortgage-counseling program. Loans can be from $15,000 to a maximum of $70,000 each. The maximum loan amount would be based on 80 percent of the FHA-determined property value. Currently, loans are at a five- percent interest rate.

Homeownership Programs

Single Family Mortgage Program

This program is financed through the sale of tax exempt bonds issued by the Board. Because of the tax-exempt status of the bonds, the Board is able to loan the funds to lower income individuals in the form of low-interest loans. While the program is mainly to assist first-time homeowners, in certain targeted areas, the borrowers need not be first-time purchasers. The home is to be owner-occupied with limited business use of the property. The purchase price or construction cost of the home may not exceed $100,000 or the FHA maximum insurance limit for the area. The refinancing of an existing home loan is not permitted.

Recycled Single Family Mortgage Program

The board has made $25 million in additional mortgage funds available through the recycling of mortgage prepayments and other funds held under prior bond issues of the Single Family Bond Program. The board works in partnership with local nonprofit housing providers and local governments to develop programs to target specific housing needs within the local community. The board provides the permanent, below market rate, 30-year mortgage financing. This is often coupled with federal grants or local funds to assist in making home ownership more affordable for lower income individuals and families. Applications are submitted through the Board's Request for Proposal process, on a monthly basis.

Disabled Accessible Affordable Homeownership Program

The board set aside approximately $5 million to provide affordable, architecturally accessible homes for people with disabilities such that they can live independently. An eligible buyer, spouse, child, or parent must have a permanent physical disability with a mobility impairment, may not have an annual income in excess of $30,000 or total family assets exceeding $50,000, and must be a first-time home buyer or had purchased a home prior to becoming disabled and it is no longer accessible to their needs.

Multifamily Programs

General Obligation Multifamily Rental Program (GO)

This program provides mortgage financing to owners of qualifying housing when the owner agrees to restrict the rents to a specific amount, and to rent only to tenants below a maximum income level (generally 60% of median income). Currently this program is financing the permanent loans for projects, which receive multiple sources of funding through other programs, where rents on the projects are affordable to very low-income state residents.

HUD/Housing Finance Agency Risk-Sharing

On June 13, 1994 the Board received final approval from HUD to participate in the Risk sharing program. The Risk Sharing Program works in partnership with the Department of Housing and Urban Development, whereby HUD provides mortgage loan insurance and the Board provides mortgage underwriting and loan management as well as financing, and the two entities share the risk of loss from a project default. The Board intends to finance the Program through the sale of tax-exempt multifamily bonds.