Montana HomeOwnership Network

Category: Best Collaboration to Promote Homeownership

Information About Innovation:
Title:	Montana HomeOwnership Network
Summary:	Since 1998, the Montana HomeOwnership Network has created 2,074 homebuyers and graduated more than 6,000 families from homebuyer education. Using network of service delivery partners, the Montana HomeOwnership Network has served families in 176 Montana communities. Lender and government partners provide capital financing for down payment and closing cost loans; while grants and loan fees support homebuyer education, housing counseling and loan processing operating costs.
Detailed Description:	The Montana HomeOwnership Network was founded in 1998 by individuals and agencies interested in offering homeownership opportunities to hard-working Montana families. Using a network of 14 services providers, MHN provides homebuyer education and housing counseling across the state. In the most remote areas of Montana, two-way, interactive video-conferencing is used to bring homebuyer education to families in search of the American Dream of homeownership. To provide comprehensive homeownership services in a state as large as Montana (think of driving from New York to Chicago to get across the state), collaborative partnership are essential. By using employees of existing agencies in rural and urban areas for scattered site homebuyer education and housing counseling, while centralizing functions such as fund-raising, accounting and loan processing, MHN has achieved tremendous efficiency and effectiveness, as shown by the number of homeowners produced and low operating costs of $200,000 per year. Each homebuyer educator decides on the best homebuyer education schedule for their area. Some offer 8 hours on Saturdays, others have expanded to 12 hours over 4 nights with additional financial fitness programming or 16 hours over 8 weeks to provide an in-depth look at homeownership. Pre- and post-purchase housing counseling are offered in person at 14 sites and in other parts of the state via toll-free phone lines. Another unique feature of MHN is the process of loan approvals and processing. Lenders throughout the state qualify the buyer for the first mortgage (using MHN set-asides from MBOH, RD or their own mortage funds, then send the loan packet to MHN for approval of the second mortgage. Using one of six fund sources which vary by family income and circumstances, MHN approves a second mortgage for down payment and closing costs. The buyer is not required to apply separately for an MHN loan. Other MHN partners collaborate to provide capital support to homebuyers. The Montana Board of Housing has provided $36 million in first and second mortgage set-aside funds for MHN buyers. MHN has received $500,000 in HOME funds for down-payment and closing costs deferred mortgages. Rural Development Housing Services has increased the total RD funds available in Montana by leveraging MHN funds. Additional partners, such as the Montana Association of Realtors and the Homebuilder's Association, provide communications support to their members. The Montana Board of Housing (MBOH) recently asknowledged MHN's value to the homebuyer process by mandating that all borrowers must have certified homebuyer education to qualify for an MBOH loan. The Board obligated $200,000 to support an expansion of homebuyer education and housing counseling, so that no homebuyer waits more than two weeks or drives more than one hour for standardized homebuyer education. The National Rural Funder's Collaborative awarded MHN $50,000 to build capacity for homeownership services on Montana's seven American Indian reservations.
Projected Cost:	Annual operating costs for the current program are $225,000. About $75,000 is distributed to homebuyer education agencies to pay their educator/counselors while the remainder ($150,000) supports the centralized services of loan processing, administration, loan servicing and fund-raising. The service delivery partners contribute office space, phone, fax and other office support functions, an average of $5,000 per agency. Total capital funds for loans average $24 million; approximately $2 million for down-payment and closing costs loans.
2003 Outcomes:	Homeowners created: 375 Homebuyer education graduates: 1,125 Loans provided: 277
Keywords:	Collaborative, Homeownership, Montana, Network, Statewide
Information About Organization:
Name:	Montana HomeOwnership Network
Address 1:	509 First Ave South
City, State, Zip:	Great Falls, Montana  59401
Org. Status:	501c3 Non-Profit
Contact Name:	Sheila Rice
Contact E-mail:	srice@nhsgf.org
Contact Phone:	406-761-5861

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