First-time home buyer programs in Montana: assistance, loans and real costs
Before the program names: montana’s home prices rose faster than almost any state’s since 2020 while its first-time buyer programs kept fixed dollar caps, so the assistance now covers a smaller share of a Bozeman or Missoula down payment than it was designed to.
| State housing agency | Montana Housing (Montana Department of Commerce) |
|---|---|
| Median home price (approx.) | $460,000 — statewide order of magnitude; metros differ |
| 3.5% / 5% / 20% down | $16,100 / $23,000 / $92,000 on the median |
| Property tax (effective) | about 0.74% — roughly $3,404 a year on the median |
| Mortgage credit certificate | Yes — mortgage credit certificate offered |
| Transfer tax | Montana has no real estate transfer tax and no mortgage tax; only recording fees apply. |
State programs for first-time buyers in Montana
Montana Housing’s Regular Bond Program offers below-market 30-year fixed loans to first-time buyers, combinable with the Bond Advantage and MBOH Plus 0% Deferred down payment assistance programs; the Montana Veterans’ Home Loan Program and NeighborWorks Montana add options.
Down payment and closing cost assistance
Bond Advantage provides a second mortgage of up to 5% of the price (capped) repaid over 15 years at a low fixed rate; MBOH Plus 0% Deferred provides a smaller 0% second with no monthly payment, due on sale, for lower-income buyers who contribute at least $1,000.
Read the lien type before the dollar figure: grant (no repayment), forgivable second (repaid only if you leave early), deferred second (repaid at sale or refinance), or repayable second (a monthly payment that counts in your debt-to-income ratio). See how down payment assistance programs work.
Mortgage credit certificate (tax credit)
Montana Housing’s Mortgage Credit Certificate offers a federal tax credit on a portion of annual interest to first-time buyers within income and price limits, usable with non-Montana Housing first mortgages.
Limits and requirements
Income and purchase price limits vary by county and household size (higher in Gallatin, Missoula and other high-cost counties); a 620 to 640 minimum credit score and homebuyer education are required.
Closing costs, transfer taxes and who pays them in Montana
Montana has no real estate transfer tax and no mortgage tax; only recording fees apply.
Montana buyer closing costs typically run 2% to 3% of the price; title companies handle closings, and rural appraisals can be costly and slow. Our guide to closing costs explains each line of the Loan Estimate and which fees you can shop.
What the payment looks like on a $460,000 home
Take a $460,000 home — roughly the statewide median, though Montana’s metros vary widely — and an illustrative 6.5% rate. The table shows the cash down and the monthly principal and interest for the three structures first-time buyers use most, plus the property tax at Montana’s approximate 0.74% effective rate ($3,404 a year). Insurance and mortgage insurance come on top.
| Structure | Down payment | Loan amount | P&I at 6.5% (30 yr) | Property tax / mo (est.) |
|---|---|---|---|---|
| FHA, 3.5% down | $16,100 | $443,900 | $2,806 | $284 |
| Conventional, 5% down | $23,000 | $437,000 | $2,762 | $284 |
| Conventional, 20% down (no PMI) | $92,000 | $368,000 | $2,326 | $284 |
Illustrative rate and approximate state figures — not an offer or a quote. Full payment tables cover $150,000 to $800,000 at 5% to 8%; the affordability guide explains how lenders size the loan.
Frequently asked questions
Does Montana have down payment assistance for first-time buyers?
Bond Advantage provides a second mortgage of up to 5% of the price (capped) repaid over 15 years at a low fixed rate; MBOH Plus 0% Deferred provides a smaller 0% second with no monthly payment, due on sale, for lower-income buyers who contribute at least $1,000. The agency publishes the current limits and amounts; a lender approved for the program will know them.
Is there a first-time home buyer tax credit in Montana?
Montana Housing’s Mortgage Credit Certificate offers a federal tax credit on a portion of annual interest to first-time buyers within income and price limits, usable with non-Montana Housing first mortgages. MCCs reduce federal income tax owed each year for as long as you keep the loan and live in the home; they are applied for through the lender at purchase.
What are typical closing costs when buying a house in Montana?
Montana buyer closing costs typically run 2% to 3% of the price; title companies handle closings, and rural appraisals can be costly and slow. Montana has no real estate transfer tax and no mortgage tax; only recording fees apply.
Before you apply
- Credit score needed to buy a house: minimums by loan type, and what it costs to be average
- Twelve first-time home buyer mistakes — and the cheap fix for each
- Earnest money explained: how much, who holds it, and how you lose it
- Appraisal gap: what happens when the home appraises below your offer
Other Montana pages: hard money rules in Montana · foreclosure in Montana.