MISSOULA — A new program launched by NeighborWorks Montana could help qualified homebuyers cover a portion of the purchase price, in exchange for a limited equity if the home is resold.
Hanna Tester, the home ownership director for NeighborWorks, said the new homebuyer assistance program is available in 22 Montana counties.
The program serves households earning between 6% and 140% of the area median income. Qualified buyers could receive a contribution of up to 30% of the home's purchase price.
“The opportunity to provide HomeStretch comes at such an important time for homebuyers and the economic situation we are currently living in,” said Tester. “Offering this new loan product to Montanans is directly in line with our mission and the role we play as affordable housing leaders across the state.”
Home prices across Montana have surged in recent years, in some cases doubling. Incomes earned in Montana's largest cities haven't kept pace with rising prices. The National Association of Realtors recently ranked Montana as having the least affordable homes.
Tester said the homebuyer assistance program looks to assist families in the so-called missing middle – those who earn too much to qualify for traditional assistance but still struggle to fund a home purchase.
Kaia Peterson, executive director of NeighborWorks Montana, said the program is supported by the recently adopted Montana Community Reinvestment Plan Act. The plan established a program that provides state funding and matches it with private sources to assist homeownership.
NeighborWorks was approved as a Community Reinvestment Organization to help administer the funds.
“This level of direct state support for homeownership is unprecedented in Montana,” Peterson said. “By making homeownership attainable for more Montanans, we hope to deliver on the broader promise of the State’s Community Reinvestment Plan to advance the well-being of communities, businesses, and the Montana economy.”
To access the funds, homebuyers must work with a lender from one of the following first mortgage lending institutions: Opportunity Bank of Montana, Clearwater Credit Union, Glacier Bank, First Interstate Bank, or Stockman Bank.
The home must be the buyer’s primary residence and purchased in one of the following participating counties: Lincoln, Sanders, Lake, Mineral, Missoula, Powell, Lewis & Clark, Beaverhead, Gallatin, Park, Judith Basin, Fergus, Petroleum, Musselshell, Valley, Glacier, Toole, Pondera, Teton, Cascade, Chouteau, or Blaine.
Peterson said each county is allocated a certain amount of funds based on County Gross Domestic Product. Follow this link to learn more.
