Down payment assistance in Montana

Montana's primary statewide down payment assistance program, run by Montana Housing. Numbers and eligibility reflect the program's published 2025 guidelines.

Bond Advantage DPA

Second mortgage
Montana Housing
Maximum assistance
Up to 5% of sale price (cap $15,000) as a 15-year second
Income limit
Up to $128,400 (varies by county)
Home price limit
Up to $625,000
First-time buyer
Required
Eligible loan types
FHA, VA, USDA, Conventional
  • Second lien at 0% interest, fully amortizing over 15 years.
  • Pairs with the Montana Bond Program first mortgage.

How Montana DPA fits into your purchase

Down payment assistance reduces the cash you need at the closing table. Montana's Bond Advantage DPA pairs with the standard FHA, VA, USDA, or conventional first mortgage from a participating lender; the DPA flows through the same closing.

Two things to budget for: most state DPA requires a homebuyer-education course (typically online, 6-8 hours, ~$75) and you usually have to use a lender on the agency's approved list. The agency keeps the list public on its website.

Common questions

What down payment assistance is available in Montana?

Montana's primary statewide DPA is Bond Advantage DPA from Montana Housing. Up to 5% of sale price (cap $15,000) as a 15-year second. Many Montana cities and counties also run additional DPA layered on top.

Do I have to be a first-time buyer?

Yes. The Bond Advantage DPA requires that you have not owned a primary residence in the past 3 years. Veterans and target-area buyers are sometimes exempt.

Can I combine state DPA with FHA, VA, USDA, or conventional?

Yes. Bond Advantage DPA works with these loan types: FHA, VA, USDA, Conventional. The DPA is layered behind your first mortgage as a separate lien (or grant), and both close together.

Does the DPA show up as debt that hurts my approval?

Yes. A second-mortgage DPA has a monthly payment, and that payment is included in your debt-to-income ratio when the lender qualifies you.

What if I sell or refinance soon after closing?

Deferred and second-mortgage DPAs are generally repaid in full when you sell, refinance, or pay off the first mortgage.

Product
Cities
Lenders
Fee explainers