Pub. 5 2017 Issue 1

9 Spring 2017 The Community Banker MONTANABOARDOF HOUSING M ontana Board of Housing (MBOH) was created by the Montana Housing Act of 1975 and issued its first bonds in 1977. It is a self-funded state agency located in Helena, working with housing partners to benefit homeowners and renters throughout the en- tire state. MBOH operates within the Department of Commerce for administrative purposes and receives no appropriations from the State general fund. Executive Director and MBOH Treasurer, Bruce Brensdal, has been at the head of Montana Board of Housing since 2000. Prior to that he was the MBOH Multifamily Program Officer for five years. He also serves as the Administrator for the Housing Division within the Department of Commerce. The Board consists of seven members who are appointed by the Governor and are subject to confirmation by the State Senate. The Board provides policy direction to MBOH staff, authorizes bond issues, ap- proves development financing and evaluates MBOH housing programs. These programs include the Homeownership Program, Multifamily Program and the Servicing Department. For 40 years, the Homeown- ership Program has acted as a secondary market, issuing tax-exempt bonds to provide low interest rate mortgage programs and down payment assistance to the borrowers of Montana. Since 1977, the Board has issued single family bonds totaling $3,604,100,799 and financed 41,800 first and second mortgage loans for Montana borrowers. Montana Board of Housing now services its own loans. MBOH is proud and excited to be able to serve its customers in this way, giving personal atten- tion to each loan and keeping the money local. MBOH partners with over 37 lenders statewide to offer a variety of low interest rate loan programs to eligible borrowers. The Regular Mortgage Bond Program offers an interest rate lower than the market rate, which makes the client's pur- chasing power go farther. These loans are fixed rate, 30-year loans and insured or guaranteed by FHA, VA, RD or HUD 184. They provide an alternative to conventional loan products that often require large down payments. The Set-aside Program is designed to assist lower income borrowers, typically 80% of median income. Often these buyers can afford a monthly payment but they struggle to save enough money for a down payment and to pay closing costs. Many of these borrowers face an "affordability gap", the difference between what they can afford to purchase and the cost of homes in their area. In this program, MBOH partners with cities, counties, non-profits, and others resources to assist a borrower with a home purchase. A participating lender will qual- ify the homebuyer for a MBOH loan for most of the purchase price and the non-profit steps in with the balance. The difference can be as little as $1,500 or as much as $45,000, depending on the location in the state and the needs of the buyer. Montana Board of Housing is proud to provide additional programs such as the Montana Veteran’s Home Loan Program and the Disabled Accessible Affordable Homeownership Pro- gram at greatly reduced interest rates. The Habitat for Humanity and 80% Combined Programs offer loans that require no mortgage insurance, therefore reducing the borrower’s monthly mortgage payments. MBOH also offers the Mort- gage Credit Certificate (MCC) Program. The Mortgage Credit Certificate Program provides eligible homebuyers with the opportunity to buy a home by keeping more money in their pocket each month. An MCC reduces the amount of federal income tax homeowners pay, giving them more money to use toward their mortgage. Under this program, a home- buyer selects any non-MBOH loan and attaches a federal income tax credit to their loan. Lenders can use this tax credit to help qualify the buyer for the loan. If you’re interested in partici- pating in MBOH Loan Programs or have questions, feel free to contact Charlie Brown at (406) 841-2850 or chbrown@mt.gov Featured Associate Member