First Time Homebuyer Downpayment Assistance Program
Deferred payment simple interest second mortgage with no payment until first mortgage is satisfied (i.e. sale, refinance or paid in full). Loans up to $35,000 in Mineral, Missoula and Ravalli Counties. The loan fills the gap between the purchase price and the greatest amount the lender will lend the household. Only the minimum amount of assistance needed to enable the participant to purchase a modest home will be provided. There are no payments on the homebuyer assistance loan while the household is paying on the superior mortgage. Repayment would be required once the superior mortgage is satisfied. If the household elects to refinance or sell the home, HRC’s mortgage & deferred simple interest would be included in the loan payoff.
PROGRAM GUIDELINES
- Applicants must qualify for 30-year, fixed rate of interest (not subprime) 1st mortgage with lender of choice.
- Household annual gross income cannot exceed 80% of HUD median income up to the day of closing. (See flyer below for current income limits)
- Household must contribute a minimum down payment of 3% of the home’s purchase price.
- Mortgage payment including taxes and insurance must be between 29% and 32% of monthly gross income.
- Applicants must attend and complete a homeownership course approved by Human Resource Council prior to closing.
- House must meet Housing Quality Standards, Lead Based Paint standards, and other standards required by Lender.
- Home chosen for purchase must be owner-occupied or vacant at the time the buy-sell is signed. It cannot be a rental, unless you are the renter.
- Maximum purchase price of home may not exceed FHA mortgage limits for county of purchase.
- Total debt ratio should not exceed 42% of monthly gross income.
