Montana Code 90-6-604. Additional terms of program
90-6-604. Additional terms of program. (1) The maximum amount of a loan made by the board pursuant to this part is 95% of the value of the statewide allowable purchase price determined by the board pursuant to 90-6-605.
Terms Used In Montana Code 90-6-604
- Board: means the board of housing provided for in 2-15-1814. See Montana Code 90-6-602
- Eligible veteran: means an individual who is a Montana resident and who:
(a)is or has been a member of the Montana national guard;
(b)is or has been a member of the federal reserve forces of the armed forces of the United States, serving pursuant to Title 10 of the United States Code;
(c)is serving or has served on federal active duty pursuant to Title 10 of the United States Code;
(d)is an unremarried spouse of an individual who was otherwise an eligible veteran and was killed in the line of duty;
(e)is an eligible veteran as defined by the board pursuant to 90-6-605(2); or
(f)if previously a member of the armed forces, was discharged under honorable conditions. See Montana Code 90-6-602
- First-time home buyer: means an individual determined by the board to be a first-time home buyer pursuant to rules adopted by the board. See Montana Code 90-6-602
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Participating financial institution: means a corporate lender or other loan originator approved by the board for originating and servicing loans pursuant to this part. See Montana Code 90-6-602
- program: means the program created in 90-6-603. See Montana Code 90-6-602
(2)The board shall require as a condition for a loan that an eligible veteran participate in a first-time home buyer education program approved by the board.
(3)A loan made by the board must be secured by a government guaranty pursuant to rules adopted by the board unless the board determines pursuant to 90-6-605(2) to allow the use of conventional mortgage insurance requirements and coverage.
(4)An eligible veteran shall participate in a loan by contributing a minimum amount of $2,500 unless the board determines otherwise pursuant to 90-6-605(2). An eligible veteran may use the minimum contribution toward paying closing costs and may borrow from the veterans’ home loan mortgage program the maximum loan amount allowed by the mortgage insurer for the loan.
(5)There is no limit on the maximum amount of income that may be earned by an eligible veteran for the purposes of a loan pursuant to this part.
(6)In order to allow small financial institutions to participate equitably in the program along with large financial institutions, the board shall adopt rules pursuant to 90-6-605 to specify the maximum amount of mortgage loans that may be made by any one participating financial institution.
(7)The legislative auditor must be allowed access to all documentation used for the purpose of the program.
(8)A report describing at least the operation and use of the program must be made by the board to the legislature as provided in 5-11-210. The report may be combined with other reports by the board or the department of commerce to the legislature.