State-Level Financing Programs in Montana, 2017

Montana operates two programs to faciliate in the acquisition or development of affordable and low income housing. 

Risk Sharing Program

HUD insured permanent financing units of multifamily rental property through a partnership between Montana Board of Housing (MBOH) and Department of Housing and Urban Development (HUD).

General Obligation (GO) Permanent Loan Program

The General Obligation (G.O.) Program is a source of permanent mortgage financing for affordable rental housing which meets certain low income occupancy and rent limitation requirements. The Board provides mortgage underwriting and loan management as well as financing.

The Montana Board of Housing (MBOH) obtained a General Obligation (G.O.) rating of A2 from Moodys Investors Service in April, 1997. With this rating, the Board is able to issue tax exempt bonds to finance projects that do not have mortgage insurance. These projects will typically have multiple sources of funding which have very little risk of loss in the event of loan default.

The Board will provide fixed rate mortgages for low income rental housing which meet underwriting eligibility established by the Board.

Other Items of Interest