We’re expanding our popular HomeNow down payment assistance program with a whole new suite of products designed to help working Montanans solve for affordable homeownership.
Topping the list of new features is a second, more competitive down payment assistance option: a 0% interest deferred loan that comes with the benefit of lower monthly payments. Buyers only repay the down payment loan when they sell their home or pay off their mortgage. This option joins our existing program which is structured as a non-repayable grant that buyers receive at closing, providing instant equity in their home.
MoFi president Dave Glaser says the new products are a game-changer for Montanans because they makes secure, affordable homeownership available to even more people. They offer competitive rates, are easy to use and require little additional paperwork.
“With these additions, HomeNow becomes the most widely accessible down payment assistance program to hit the streets in Montana, ever,” said Glaser. “Clients can now choose between a non-repayable grant that offers immediate equity in the home, or they can choose the new 0% deferred loan program, which has lower interest rates and therefore a lower monthly payment. There are specific benefits to both options, but the end result is the same – buyers get an affordable mortgage and we provide the boost they need to overcome the down payment hurdle.”
Both the grant and deferred loan programs are designed to help low-, moderate-, and middle-income borrowers who have steady income and qualify for a mortgage, but don’t have the cash on hand for the down payment. The assistance can be combined with a variety of 30-year mortgage options, including both conventional and government programs. Both are available anywhere in the state of Montana, and are not limited to first-time home buyers.
Buyers can receive up to 5% of the total loan amount, which can cover both down payment and closing costs. For example, the buyer of a $200,000 home who needs to cover a 3% down payment and closing costs can receive $9,700 of assistance.
MoFi, which changed its name from Montana & Idaho CDC earlier this month, launched its HomeNow grant program in 2017. In the 16 months of the program, MoFi provided grants to over 100 homebuyers across the Montana. However, in that first year MoFi also learned the affordability gap is larger than initially believed.
“We understand the urgency of housing affordability challenge in Montana, and we wanted to come at this program with every solution we could find. Over the last 18 months, we have had hundreds of conversations with loan officers, realtors, city housing officials, and prospective homebuyers to better understand the challenges they face, and how we can help,” Glaser said. “The new suite of products grew out of those conversations.”
The HomeNow down mortgage assistance programs align with MoFi’s 30-year history of transforming the lives of individuals and strengthening community prosperity. How HomeNow assistance works:
- HomeNow covers up to 100% of down payment and/or closing costs.
- Assistance can now come in the form of a one-time grant or a 0% interest deferred repayment loan.
- Assistance can cover between 3-5% of the homebuyer’s total mortgage amount.
- Assistance is not limited to first-time homebuyers.
- Homebuyers do not have to apply separately for either HomeNow program – a participating lender will coordinate it for them.
To qualify for HomeNow assistance, homebuyers must:
- Plan to live in the home being purchased.
- Have adequate income to support the mortgage payment.
- Work with a HomeNow participating lender.
To find out more about MoFi and HomeNow down payment assistance, including a complete list of participating lenders, visit https://www.mofi.org/homenow-down-payment-assistance/.