First Time Home Buyers Programs available in Billings MT
By Jacque Lorang
If you are thinking about buying your first home or becoming a homeowner again after years of renting you may be eligible for assistance that can help you get into a home with less money down or a lower interest rate. The most important factor in finding the right programs is finding the right lender and a real estate agent who is willing to spend extra time and effort making sure you understand the process and are getting the best deal. It is very important to find a lender and an agent that have knowledge and experience in dealing with first time home buyers.
In this blog I will list and explain the basics of the 5 main programs available in the Billings area:
1. Home$tart- These kind folks will match you $3 for every $1 your family saves. The borrower can have up to $1667 to which Home$tart will provide $5000 to use for down payment and closing costs. A pro-rata share of the grant must be repaid if the home is sold within 5 years after the purchase, other than that there are no repayment obligations. The Home$tart program is open for first time home buyers and those who have not owned a home in the last 3 years that earn up to 80% of the area’s median income. In addition to being eligible by income, home buyers must complete a home buyer’s education class and qualify for financing with their lender. This program helps first time home buyers by keeping the initial expense of getting into a home down.
2. City of Billings- The City of Billings has a program where if the home buyer comes up with a minimum of $1000 they will provide assistance of $5,000 or $10,000 depending on the borrower’s income. There is an obligation to repay if the home is sold or refinanced prior to the 30 year term of the loan. Again, this program helps first time home buyers get into a home with less money down.
a. http://ci.billings.mt.us/index.asp?nid=114
3. Neighborhood Housing Services- A minimum investment of $500 to obtain the maximum loan amount of $5,000. Loans are paid back along with the borrower’s Montana Board of Housing mortgage payment over a 30 year term. This program is also in place to keep the initial costs of buying a home down.
4. Montana Board of Housing- This program provides loans at a lower interest rate. Currently they offer 30 year mortgages at 5.5%-6% interest rate. A lower interest rate means lower monthly payments. Again, the household must make less than 80% the area median income.
a. http://housing.mt.gov/Hous_BOH_SF.asp
5. $7,500 tax credit- If you buy a house between now and July 1, 2009 you are eligible to receive a tax credit up to $7,500 on your next year’s tax refund. This tax credit is actually more like an interest free loan. 2 years after you receive the credit you must start repaying it at a rate of $500 each year. The 1st year in a home can be very financially taxing, usually it takes most of your savings to come up with a down payment and closing costs, then there seems to be an endless list of things you need once you get into your new home. Hoses, lawnmowers, and a personal washing machine are something that most renters don’t think much about, but as a homeowner they become necessities and something the tax credit could help you acquire.
a. http://www.federalhousingtaxcredit.com/index.html
These are just a few of the programs available and just the tip of the iceberg as far as details on each program. If you are thinking about buying your first home give me a call(Jacque Lorang 690-5277) I would be more than happy to help you take the 1st steps and provide you with a packet full of useful information you can use to help on your journey.
*always consult your accountant as to the best program for you.