Pub. 6 2018 Issue 3

9 The Community Banker Featured Associate Member H ome ownership is still a goal for most Americans, but for many people today’s high cost housing market makes it more difficult to obtain affordable home ownership. Through a combination of high-quality education and counseling, and a variety of affordable loan products, NeighborWorks Montana makes home ownership accessible to Montanans who might not otherwise be able to attain this goal. Through NeighborWorks Montana’s network of HUD-certified housing counselors across the state, home buyer education and counseling are available both in person and online. Most partners offer in-person home buyer classes monthly. Topics covered include budgeting, how to develop good working relationships with the realtor and lender, the importance of getting a home inspection, how credit affects our lives and much more. We encourage potential home buyers to attend the class early in their home buying experience to prepare and educate them about the process. After the purchase, our partners are there to offer post-purchase classes and if necessary, foreclosure prevention advice, to support clients in being successful long-term homeowners. NeighborWorks Montana’s single-family secondary loan products are designed to meet the needs of a variety of clients. Our 20+ com- munity second loan product enables clients to obtain a first mortgage that doesn’t require mortgage insurance. This product is particularly effective in Montana’s larger cities. Our deferred 0% second mortgage is great for clients who need down payment assistance without addi- tional monthly payments. These loans help reduce clients’ mortgage payments. These products work with most first mortgages and can be combined with borrower contributions and grants to cover the down-payment and closing costs. We layer different funding sources, in some cases up to four different programs, to give the home buyer the financing package that best meets their needs. The requirements of specific products vary. For some products, borrowers do not need to be first time home buyers, incomes can be up to 125% AMI, and the buyers’ contribution can be as little as 1% of the purchase price. With our experienced staff and strong support from our partners, we are well equipped to work with lenders to put together a package that can best assist the home buyer. To create even more paths to home ownership, NeighborWorks Montana recently became a USDA Rural Development direct loan certified packager. This allows us to take the application and assist in obtaining the correct documentation to send to RD. This process is intended to reduce the time it takes to get a qualification determi- nation and be issued a Certificate of Eligibility (COE) from RD. Many households in rural areas of Montana are eligible for rural devel- opment direct loans, and we are pleased to be able to make this affordable product more accessible. We recently spoke with Randy Hoag of First Interstate Bank in Hel- ena about his experience using our products. He gave this advice to lenders, “Using these products can give your buyer the most buying power possible. Don’t be afraid to submit an application to help your client. I enjoy working with NWMT and they are very accessible.” If you have a home buyer that may benefit from a NeighborWorks Montana loan product, our lending team is happy to assist you with any ques- tions about our products. You can find more information about our counseling network and our loan products by visiting www.nwmt.org or calling us at (406) 761-5861. We also send out a monthly lender e-newsletter which you can receive by emailing mrogers@nwmt.org or you can connect with us on Facebook.com/NeighborWorksMT. Established in 1998, the Montana Home Ownership Network, dba NeighborWorks® Montana, works to create opportunities for families and individuals to live in affordable homes in strong communities. NEIGHBORWORKS