New Program Provides Down Payment Gift For Montana Homebuyers

The Montana & Idaho Community Development Corporation (MICDC) is introducing its new HomeNow Down Payment Gift Program across Montana, providing eligible borrowers 3.5% or 5% of their total mortgage loan amount to fund down payment, closing costs and prepaid items. Borrowers are not required to repay HomeNow Down Payment Gifts. The program is currently available in Missoula and eventually will be expanded statewide.

One of the biggest challenges potential homeowners face isn’t making monthly mortgage payments – many already pay as much or more in rent – but saving for the down payment and closing costs. Considering that a recent survey showed 62% of Americans have less than $1,000 in savings, and a minimum down payment on a $200,000 home is $7,000, most Montanans can’t afford to become homeowners.

The HomeNow Down Payment Gift Program is designed to help borrowers overcome that challenge by providing a gift to fund up to 100% of the cash requirement to close, including down payment and closing costs. No additional paperwork or information is required to qualify for a HomeNow Gift; the funds are provided at close with a participating lender with just one additional signature.

"The HomeNow Down Payment Gift Program is cash for eligible borrowers to put toward a down payment and closing costs," said MICDC President Dave Glaser. "The HomeNow Program is available in about 30 other states, but this is the first time it will be available in Montana. As housing prices have risen across the state, we decided to introduce the program here – and are looking forward to awarding our very first Montana gift right here in Missoula."

To be eligible for a HomeNow Down Payment Gift, borrowers must:

* Qualify for a 30-year, fixed-rate mortgage through FHA, VA, HUD Section 184 or Rural Development.

* Have income within established limits.

* Have a minimum 640 credit score.

* Occupy the property as a primary residence.

The HomeNow Down Payment Gift Program is not limited to first-time homebuyers, and can be used for housing purchases or rate/term refinances. Homebuyer education courses are recommended, but not required.

Potential homebuyers should contact a participating mortgage lender to find out if they qualify for the program. Currently, First Security Bank of Missoula and Mann Mortgage of Missoula are participating, but MICDC is working to have every lender in Montana participate.

Montana & Idaho Community Development Corporation

The Montana & Idaho Community Development Corporation (MICDC) provides consulting services and financing to entrepreneurs and small business owners across Montana and Idaho, as well as affordable housing solutions in Montana. MICDC was one of the first Community Development Finance Institutions in the country to be certified by the U.S. Treasury, and its powerful New Markets Tax Credit Program brought hundreds of millions of dollars to Montana and Idaho and created thousands of jobs. Since its start in 1986, the nonprofit MICDC has grown to over $400 million in loans under management, with offices in Missoula, Bozeman and Boise. Learn more at http://mtcdc.org/.