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Glacier Affordable Housing First-Time Homebuyer Down Payment & Closing Cost Assistance Program
NeighborWorks Montana/NeighborWorks Great Falls
www.nwgreatfalls.com

Program Overview

Glacier Affordable Housing First-Time Homebuyer Down Payment & Closing Cost Assistance Program is a program designed to assist low-to-moderate income families become homeowners by providing down payment and closing cost assistance to be used toward the purchase of a home. The program is funded by Glacier Affordable Housing Foundation and Montana Department of Commerce (CDBG and/or HOME grants. First mortgage financing is provided by Montana Board of Housing and/or USDA Rural Development as well as conventional loans. Please check availability of funds prior to sending reservation request.

Who is eligible for this program?

Homebuyer to be either a first-time homebuyer, or single parent with dependent children or have a disabled family member. - Residence to be financed shall be occupied as borrower's principal residence. - NeighborWorks-approved homebuyer education is required (check website for class providers and schedules at www.nwmt.org/schedule.htm). An environmental clearance is required on all loans (this will be ordered by NeighborWorks and usually takes 2 weeks to complete). Maximum Gross Annual Family Income from all sources not to exceed 80% of the area median income for the County the home is located in (see income spreadsheet on website, at www.nwmt.org/glacier.html). Is this program for first time buyers only? No

Property Eligibility Requirements

Allowable property types: A Housing Quality Inspection must be performed on each property using HOME funds. This HQS inspection will be ordered by NeighborWorks (this will usually take at least 2 weeks) and any required repairs must be completed prior to closing. Property cannot have been rented in the last 90 days. If appraisal identifies the property as vacant, then the Seller will have to provide a statement stating that the property has not been rented in the last 90 days. If the appraisal states the property is inhabited by a tenant then this program cannot be used unless the tenant is the prospective buyer. If property was built before 1978 and any peeling or chipping paint is identified on the HQS Inspection or appraisal, then property will not be eligible. Any repair requirements listed on the lender's appraisal must be completed prior to closing. Any manufactured homes must be on permanent foundation (FHA foundation requirements apply) and must be larger than a singlewide.

Benefit Details

Rehabilitation loans are not eligible under this program. Refinances are not eligible. Up to $40,000, with no interest and no monthly payments, may be available to qualified homebuyers. Borrower must contribute 1-2% of the purchase price from their own funds into the transaction (cannot be borrowed, but may be a gift). The borrower contribution is based on the following: - Income from 50-59% of Area Median 1% - Income from 60-69% of Area Median 1.5% - Income from 70-80% of Area Median 2% - Family liquid assets cannot exceed $5,000.00 and total family assets not to exceed $70,000.00. (Liquid assets are checking, savings, stocks and bonds; total assets include liquid assets and retirement accounts, personal property, autos, etc.) Benefit: Glacier Affordable Housing Foundation’s First Time Homebuyer Program provides down payment and closing cost assistance on a deferred basis, with no payments due and no interest accruing. At such time as the borrower sells or refinances the property, the loan, together with a share of the equity, becomes due and payable. The “recaptured” funds are then “recycled” to provide down payment and closing costs assistance to additional eligible homebuyers. Homebuyer Counseling / Education Required: Yes Owner Occupancy Required: Yes Other Program Comments: The Maximum First Mortgage Loan Amount is the current FHA single family maximum for the State of Montana. The maximum sales price is the FHA single family maximum for the State of Montana.

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