Increasingly home ownership has become more difficult for the average family to afford. To help with the housing problem, the City of Bozeman Workforce Housing Ordinance (WFHO) was created in August 2007. The WFHO is the result of years of coordination with local citizens, community groups, builders, developers and governmental organization. Who is qualified to purchase a WFH unit? All application to the Workforce Housing (WFH) program must be residents of Gallatin County, or employed in Gallatin County or demonstrate that they are moving to Gallatin County for a specific job at the time of application. Applicants must earn less than the current income limits for the program and have the ability to secure a mortgage meeting the WFH program requirement sufficient to purchase a WHF unit.

Income limits are determined by the U.S. Department of Housing and Urban Development (HUD) and are updated annually effective July 1. Currently, households may not earn more that the amounts as follows:

Household size Maximum Gross Annual Income - 2008

1-4 persons $70,100
5 $75,660
6 $81,240
7 $86,880

To apply to purchase a WFH unit:

Complete a face-to-face, HUD-certified home buyer’s education course. The times are available by contacting the Human Resources Development Council (HRDC) at (406)-587-3386

Meet with a HRDC housing counselor to determine how much you can afford, complete the application and income certification process Meet with an approved lender to obtain a pre qualification letter Have your WFH package submitted to the City of Bozeman Workforce Housing Program Administrator (WFHA)

Upon finding a WFH home that you are interested in, you must submit and Intent to Purchase form for that unit to the WFHA. The forms will be accepted during the opening marketing period for the unit. Close contract with the WFHA is important. At the end of that period, if you are the only interested party you may enter into a contract with the seller. If there are two or more interested purchasers, the WFHA will use a lottery system to determine the first household that can purchase the property. That household will have 48 hours to enter a contract to purchase, or the next household on the lottery list may purchase the unit and so on.

The requirements for the WFH mortgage are specified in the WFH mortgage Policies. Mortgage requirements are in place to help prevent default and assist buyers to receive the best, most affordable mortgages available for the circumstances. The city considers the applicant’s mortgage to be affordable if their debt to income ratio does not exceed 41%. This includes the proposed monthly PITI, HOA dues, mortgage insurance, flood insurance premiums, and all other monthly debt payments. The city may allow a debt to income ratio of up to 45% in special circumstances outlined in the Mortgage Policies. The WFHA will review the loan application, Good Faith Estimate and Truth in Lending disclosures for reasonableness and consistency with the WFH application package.