GREAT FALLS — Homeownership programs have traditionally focused on assisting individuals and families with lower incomes. However, a recent initiative involving NeighborWorks Montana is set to expand this support to those in medium-income ranges, making homeownership a reality for many first-time buyers.
NeighborWorks Great Falls investing millions into housing for regional counties
The foundation for this new opportunity is House Bill 819, which was passed in 2023. This significant legislation allocates $50 million for down payment assistance to homebuyers across Montana.
Recently, NeighborWorks Great Falls, acting as a community reinvestment organization, was approved a substantial portion of these funds, gaining access to over $5.2 million dedicated to assisting residents in Cascade, Chouteau, Blaine, Glacier, Teton, Toole, and Pondera Counties.
The program, according to officials, will leverage these funds effectively.
“We’ll come in with another dollar-for-dollar match of investor funds from NeighborWorks to create this loan pool for down payment assistance,” says Sherrie Arey, Executive Director of NeighborWorks Great Falls. This collaboration will result in a total fund pool exceeding $10 million.
This down payment assistance program is designed to help qualified homebuyers finance up to 30% of their home’s total purchase price through loans and investments. Additionally, it will establish a revolving loan fund to provide ongoing support. In exchange for this assistance, homebuyers agree to an equity cap of 1% per year.
“This could really help that first-time homebuyer get into a home and start putting their rental dollars to work for them,” says Arey.
For many middle-class Montanans who are struggling to afford expensive down payments, particularly amidst rising rental costs, this program presents a transforming opportunity. It targets what NeighborWorks refers to as the ‘missing middle’—a group that includes well-paid professionals, young families, and individuals who, despite their strong incomes, find it challenging to save for a down payment due to exorbitant rental expenses.
“They may earn a solid income, yet their high rent payments prevent them from accumulating the savings needed for a down payment,” Arey explained.
The program is positioned as a vital initial step for those who often find themselves feeling stuck within a slightly higher tax bracket, qualifying for assistance all the way up to 140% of the area median income, which translates to approximately $100,000 for a family of two or three.
NeighborWorks Great Falls is teaming up with the Great Falls Development Alliance on their dollar-matching initiative while also focusing on building more homes. In collaboration with NeighborWorks Montana, this community reinvestment initiative is poised to serve Montanans across 21 counties, offering new hope to those dreaming of homeownership.
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