Billings Launches Zero-Interest Loans for First-Time Homebuyers Starting July 2026

The City of Billings First Time Homebuyer Program began accepting applications on July 1 2026 for zero-interest, deferred-payment loans of up to $15,000 or 20 percent of purchase price, available on a first-come first-served basis to households earning no more than 80 percent of area median income.

Policy Settings Now in Effect

The timing of the funding release places renewed emphasis on local and state assistance programs at a moment when purchase price caps and income thresholds remain central to who can participate. Preference is given to families of five or more and households that include a disabled individual, reflecting current program rules designed to direct limited resources toward specific household types.

Eligibility and Property Requirements

Applicants must have no ownership of a home in the past three years, be at least 18 years old, contribute between $1,000 and $2,500 of their own funds, and hold household assets below $15,000. Eligible properties are limited to single-family homes that are residentially zoned, located inside Billings city limits, intended as the primary residence, and priced at or below the $209,000 cap.

Education Requirement and State Options

Completion of homebuyer education through HRDC District 7 is required before accessing city or state down payment assistance. The Montana Board of Housing operates additional programs that carry higher purchase price caps near $450,000 and income limits reaching approximately $109,000, providing a separate pathway for buyers who exceed city program thresholds.

Buyers interested in the city program should confirm current availability directly with the City of Billings and complete the required education course through HRDC District 7 before submitting an application. Those whose income or target purchase price falls outside city limits may review Montana Board of Housing options for additional support.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.