Helping You Help Homebuyers
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HomeNow is the best down payment assistance choice for Montanans who have steady income, decent credit, but like so many people, don’t have the cash for a down payment.
Who uses HomeNow?
HomeNow helps a wide range of borrowers: low, moderate and middle income borrowers can qualify. Young, old or middle age. First-time homebuyers or borrowers returning to homeownership after renting or staying with family. Recent graduates with student debt, blue collar workers or white collar professional. We’ve helped nurses, police officers, teachers, pilots, oilfield workers, construction workers, retail clerks, attorneys, and more.
What kind of mortgage do I need?
HomeNow down payment assistance can be combined with several different 30-year, fixed-rate mortgages. Participating HomeNow Lenders can advise you on the best mortgage for you based on your credit score, income, debt, purchase price, etc. Mortgage choices include conventional HomeReady mortgage from Fannie Mae or loans from the Federal Housing Administration (FHA), USDA Rural Development or the VA.
How much down payment assistance can a buyer get?
Borrowers with conventional HomeReady loans will choose between two levels of assistance - either 3.0% or 5.0% of the total loan amount. Borrowers with government loans (FHA, USDA Rural Development or VA) will choose between 3.5% or 5.0% of the total loan amount. For example, 5.0% of assistance on a home with a purchase price of $200,000 that requires a 3% down payment will receive $9,700 of assistance ([$200,000 - $6,000] X 5.0%), enough to cover the down payment and some or all of the closing costs.
Do I have to pay back any portion of the down payment assistance?
- A non-repayable grant that provides the instant equity that’s yours to keep and does not need to be repaid, ever. (Available for conventional or government-insured mortgages)
- A 0% interest, deferred loan that does does not require payment until the borrower pays off the home, sells, or refinances. (Available for conventional mortgages only)
What are the interest rates?
HomeNow interest rates are set on a daily basis and shared with participating lenders. Participating lenders can assess the cost of the interest rate and fees vs. the credits from down payment assistance grants and money-saving tax credits like the Mortgage Credit Certificate. All contribute to the monthly costs and benefits of a loan.
Do I have to be a first-time homebuyer?
Absolutely not! The program is available to all qualifying buyers, and is NOT limited to first-time homebuyers.
What is the minimum credit score?
A minimum FICO score of 640 is required for government borrowers (FHA, USDA-RD, VA); 680 for conventional borrowers (HomeReady). If a Borrower has NO Credit Score, Alternative Credit can be used for manual underwriting of the loan application.
Are there income restrictions?
Yes. Income limits for conventional loans are based on the location of the home being purchased. Just type in the address on this cool HomeReady income eligibility tool. Addresses in low-income areas have NO INCOME LIMIT. In all other census tracts, income is capped at 100% of the area’s median income. Income limits for FHA and VA government loans are county-by-county and capped at 115% of area median income. For USDA-RD loans, income limits are generally higher and based on 1-2 person households and higher still for 3+ person households.
Do I have to take a homebuyer education class?
Education is always a good thing but only borrowers applying for conventional HomeReady loans are required to complete a class before closing their loan. You can do this online and on your own time or in a HUD-certified class. Borrowers applying for a government loan are not required to complete homebuyer education.
How do I apply?
Easy! Contact a participating lender and ask if HomeNow is right for you. HomeNow does not require additional steps in the mortgage application process.
How do I find a participating lender?
Just click to our Lender Locator tool here.