Loan program designed for veterans

The Montana Board of Housing has launched a new home loan program aimed at helping Montana veterans become first-time homeowners or homeowners after three years without owning a home.

Launched Nov. 1, the Montana Veterans’ Home Loan Program was established by the Legislature to reward Montana residents who serve or have served in the Montana National Guard or other national armed forces and reserves.

“The intent of the program is to recognize and reward Montana’s military personnel by making homeownership a more attainable reality,” Gov. Brian Schweitzer said.

Following the Legislature’s direction, the program uses $15 million from the permanent coal tax trust fund for veteran home loans. The decision was made to use some of the money in the trust fund for a veteran mortgage loan program at a rate lower than current market rates.

Eligible applicants include Montanans who have served this country well and unremarried spouses of eligible veterans who have made the ultimate sacrifice in service to their country.

The interest rate on the Montana Veterans’ Home Loans will be 1 percent less than the Federal National Mortgage Association’s 60-day delivery rate on a 30-year mortgage or 1 percent lower than the Montana Board of Housing regular bond loan program interest rate, whichever is lower.

Borrowers must:

 Be Montana residents.

 Be a first-time homebuyers (no ownership in a home for the previous three years.)

 Be Montana Board of Housing-approved homebuyer education graduates

 Commit $2,500 of their own cash.

 Maintain the home as their primary residence.

The purchase price is limited to 95 percent of the Montana Board of Housing statewide average (currently $234,681). Loans are 30 years at fixed rates and must be insured.

There are no income or asset limitations for borrowers.

Interested borrowers should visit the website housing.mt.gov. Lenders who want to become certified to do these loans can find the details they need on the website as well.

For more information, contact Penny Cope at 406-841-2846 or go to housing.mt.gov.