Assistance Program Search

GR8 HOPe
Rocky Mountain Development Council
www.rmdc.net

Program Overview

GR8 HOPe is a program that provides a deferred second loan to help with down payment and closing costs, to bridge the gap between the primary mortgage and the purchase price of the home. Borrowers do not make payments on this loan until they sell or refinance the house, at which time the loan is paid back in full, along with a percentage of any appreciation in the value of the house. The home must be located within the greater Helena area of Lewis and Clark County; that is, Helena, East Helena and the Helena Valley. The application fee is $ 250.

Who is eligible for this program?

Participants must complete the First-Time Homebuyers and Budgeting Class workshops. Applicants must not have owned a home in the past three years (with the exception of mobile homes), or have lost the home due to divorce or death of a spouse. Applicants must have had at least a year of continuous employment at the same job or type of job. The homebuyer must provide a minimum contribution/down payment of 1.5% of the home purchase price. The borrower may keep no more than $5,000 in liquid assets after making the highest down payment possible. Homebuyer must be able to pay for a home inspection (usually $250 - $300) out-of-pocket. Applicants must not owe taxes, fees or fines to any municipality. Total gross income for all members of the household (18 and older) must be at or below 80% of the Area Median Income for Lewis & Clark County (according to MBOH income limits, available at: http://commerce.mt.gov/Housing/Includes/BOH/Multifamily/2007IncomeLimits.pdf). Applicants must have income and job stability, a Beacon score above 620, no unpaid collections in the past 6 months, and at least $2,000 in savings. GR8 HOPe funds are to be used only for the purchase of a primary residence. GR8 HOPe funds are not to be used to purchase a second home, a rental home, a place of business or open land. (Land value can be no more than 35% of purchase price.) Any business run out of the home must occupy less than 15% of the square footage of the home. Furthermore, a homebuyer does not have the option to lease the home out at a later date. Is this program for first time buyers only? Yes

Property Eligibility Requirements

Homes located within a 100-year Flood Plain may be eligible if the homebuyer agrees to purchase and maintain additional flood insurance. Homes located within 2500 feet of an Airport Crash Zone are not eligible. The home must meet FHA and MBOH standards, be immediately inhabitable, pass a Housing Quality Standard inspection by the GR8 HOPe project coordinator, and be inspected by a professional home inspector. Allowable property types: no manufactured homes

Benefit Details

A borrower is eligible for the GR8 HOPe funds for a period of 90 days after submitting an application. If the borrower is unable to purchase a home in that period of time their eligibility will expire and they will be returned to the waiting list for future consideration. RMDC will also charge a servicing fee of 1% of the sale price of the home when the loan is paid off. The non-refundable home inspection fee may be counted as part of the borrower’s down payment contribution. Loans range from closing cost help of a few thousand dollars to the maximum of $37,500. Benefit: The goal of the GR8 HOPe program is to help qualified borrowers purchase their first home. A qualified borrower is someone who has a good credit rating and adequate income. These qualifications are important because it is not the intent of the program to put first-time homebuyers in a financial situation that they cannot handle. It is imperative that an applicant have the financial resources and the budgeting skills necessary to make a house payment every month, as well as make repairs as needed to maintain the home. Loan Term: 33-35 years Homebuyer Counseling / Education Required: yes Owner Occupancy Required: Yes Other Program Comments: The application fee is due at closing. Homes built prior to 1978 must be checked for lead-based paint.

Please note: Every attempt is made to reflect accurate and up to date information on housing programs displayed on this site. Some inaccuracies may exist. For verification .