What is the primary function of the Montana Board of Housing (Montana Housing)?
Correct Answer
B) Provides below-market mortgage loans and down payment assistance to eligible homebuyers
The Montana Board of Housing (Montana Housing) is a state agency that administers affordable housing programs, including below-market interest rate mortgage loans and down payment assistance programs for low- to moderate-income homebuyers. It finances these programs through the sale of tax-exempt mortgage revenue bonds. It does not issue real estate licenses, conduct appraisals, or set interest rate caps.
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Related Concepts
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
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