Monday, October 31, 2011 4:19:37 PM
FOR IMMEDIATE RELEASE:
Monday, October 31, 2011
Marketing & Web Specialist
Montana Housing Division
Montana Department of Commerce
Montana Board of Housing Launches New Home Loan Program
to Honor Montana Veterans
(HELENA) – The Montana Board of Housing (MBOH) is launching a new home loan program aimed at helping Montana Veterans fulfill the American dream of first-time homeownership. The Montana Veterans’ Home Loan Program was established by the 62nd Legislature to honor Montana residents who are serving or have served in the Montana National Guard or in the national armed forces and reserves. The program launches November 1, 2011.
“The intent of the program is to recognize and reward Montana’s military personnel by making homeownership a more attainable reality,” said Governor Brian Schweitzer. “The Montana Board of Housing, Board of Investments and Department of Commerce are coming together to serve the people who have proudly served us.”
Following the legislature’s direction, the Board of Investments will allow MBOH to administer $15 million of the permanent coal tax trust fund for the purpose of this program. The decision was made to use some of the money in the trust fund for a mortgage loan program so that first-time homebuyers who are eligible can acquire a mortgage loan at a rate lower than current market rates. In this way, Montana can reward those eligible veterans who have served this country well and reward the unremarried spouses of eligible veterans who have made the ultimate sacrifice in service to their country.
The interest rate on the Montana Veterans’ Home Loans will be 1% less than the Federal National Mortgage Association’s (Fannie Mae) 60 day delivery rate on a 30-year mortgage or 1% lower than the MBOH regular bond loan program interest rate, whichever is lower. Interested borrowers should visit housing.mt.gov for a list of lenders who are certified to originate the Montana Veterans’ Home Loans. Loan reservations will be accepted beginning November 1, 2011. MBOH is an equal opportunity lender.
Other features of the Montana Veterans’ Home Loan Program:
- Be Montana Residents
- Be First-Time Homebuyer (no ownership in home for past three years)
- Be MBOH-approved Homebuyer Education graduate
- Commit $2,500 of their own cash into the transaction
- Maintain the home as their primary residence
- Purchase price is limited to 95% of the value of MBOH’s statewide average (currently $234,681)
- 30-year fixed rate loan
- Loan must be insured by FHA, VA, RD, or HUD 184
- No income or asset limitations
Interested borrowers should visit the website housing.mt.gov for all the necessary information. Lenders who wish to become certified to do these loans can find the details they need on the website as well.
For more information, or to connect with a Montana Veteran taking advantage of the Montana Veterans’ Home Loan Program, contact Penny Cope at 406-841-2846 or go to housing.mt.gov.