Buying a Community Housing Trust Home
Finding Traction in the Ownership Market
Homeownership is a tool to achieve stability and build equity over time. Yet, local wages have failed to keep up with skyrocketting home prices, and homeownership has become out of reach for Bozemanites. Without the opportunity to lay down roots, vital members of our community will continue to leave and Bozeman’s workforce will become increasingly transient and stressed. Headwaters is addressing this by building and preserving homeownership opportunities for middle-income locals.
Prospective Homebuyers should understand that:
- The purchase price for Headwaters homes are generally 25-50% lower than market rate equivalents.
- To be eligible to apply for a Headwaters home, you must earn no more than 120% of the Area Median Income.
- Inorder for homes to remain affordable for generations of middle-income households, appreciation on Headwaters homes is capped at 2.5% per year (compounding on the initial purchase price).
- Headwaters uses the community land trust model to ensure homes in the trust remain affordable for generations. This means that Headwaters maintains ownership of the land, and homeowners sign a long-term (75 year) renewable land lease. The land will never be sold out from under the homeowner.
- When Headwaters homes come up for sale, there are typically many households that are interested. We have a weighted drawing system to make the process as fair as possible.
Interested in owning a Headwaters home? Scroll to learn about the steps to buying a Headwaters home. Don’t forget to visit our FAQ page and our Available Homes page.
Steps to Buying a Home
1.
Confirm your eligibility
Check whether you meet these criteria:
- Able to obtain a conventional mortgage through a lending institution (typically 18 years old or older with citizenship)
- 75% of your household income earned locally
- Residency in Bozeman or listed zip codes
- Income between 80-120% AMI (~$105,000-$156,000)
- Assets under $130,000
- Do not own other residential real estate
Definition of local employment
Local zip codes
- 59714
- 59715
- 59717
- 59718
- 59719
- 59771
Local residency defined
- 59011
- 59018
- 59027
- 59030
- 59047
- 59052
- 59065
- 59082
- 59086
- 59643
- 59714
- 59715
- 59716
- 59718
- 59721
- 59729
- 59730
- 59735
- 59740
- 59741
- 59745
- 59747
- 59752
- 59760
Are your assets below the cap?
Homes are targeted to local residents who don’t have financial resources to buy a home in Bozeman at today’s prices. Households with assets above $130,000 are not eligible. (If you are slightly above this amount, please contact Community Housing Trust staff to discuss.)
Assets to be considered include:
- Cash savings, including but not limited to bank accounts, credit union accounts, certificates of deposit, and money market funds.
- Marketable securities, stocks, bonds, and other forms of capital investment.
- Inheritance and insurance payments received in previous five (5) years.
- Settlements for personal or property damage received in previous five (5) years.
- Other personal property that is readily convertible into cash.
The following are not considered assets by Headwaters:
- Ordinary household effects including furniture, fixtures, and personal property that is not readily convertible into cash.
- IRAs, pensions, investment accounts, etc. that would require a penalty for early withdrawal.
- Automobiles used for personal use.
- Balances in specifically designated retirement funds and college savings accounts.
- Securities, stocks, bonds, and other forms of capital held in a tax-deferred retirement plan recognized by the Federal Internal Revenue Service.
Is your gross income below the allowable ceiling?
Homes are targeted to households earning up to $156,000 per year. (If you are slightly above this amount, please contact Community Housing Trust staff to discuss.) This cap represents 120% of the Area Median Income (AMI) for a 4-person family in Gallatin County as published by the U.S. Department of Housing and Urban Development, May 2026.
2.
Get Prepared
To enter a drawing, you will need to:
- Meet with a local lender and get pre-qualified for a loan (learn what loan amount is manageable for your household).
- Determine that you have resources available for a down payment (at least 5% of the purchase price is required for down payment and closing costs).
- Take a homebuyer education class that will explain other steps in the homebuying process.
Local lenders familiar with Headwaters homes
Evergreen Home Loans
Amanda Menzel, 406-599-2688 amenzel@evergreenhomeloans.com
Opportunity Bank
Elisha Grace, 406-209-1594
egrace@oppbank.com
First Security Bank
Rossi Benner, 406-556-3816 rossi.benner@ourbank.com
Tanner Aasheim, 406-548-6958
tanner.aasheim@ourbank.com
Stockman Bank of Montana
Ron Culver, 406-556-4102
ron.culver@stockmanbank.com
Headwaters reserves the right to approve all mortgage financing.
Homebuyer education and counseling agencies
3.
Enter a drawing
We will ask you to provide:
- Household gross income
- Household assets
- Assets available to apply toward a down payment
- Estimated household debt
- Loan prequalification amount from a local lender
- Verification of completed homebuyer education course
The weighted drawing
There is far more demand for Community Housing Trust homes than there is supply. Potential homebuyers will be randomly selected through a weighted drawing that gives more entries in the drawing for applicants that have lived in the Bozeman area for a certain number of years.
*number of years within the last 10 years (need not be consecutive)
What if I’m selected in the weighted drawing?
If you are selected in the weighted drawing to have the opportunity to purchase a below-market Headwaters home, you will need to move quickly! You will have 7 days to complete your application. If you are unable to finish in this timeframe, we will have to move on to the next person on our waitlist. We will send you a link to the full homebuyer application form, which requires the following additional information:
- Federal income tax returns from previous 2 years (including W2s)
- Recent paystubs or employment agreement
- Proof of citizenship (passport, birth certificate)
- Proof of residency in Gallatin County (voter registration card, copy of lease, utility bills)
- Copies of statements for all asset accounts (checking, savings, investment, etc.)
- Copies of statements for all debts (credit card bills, auto loan statements, etc.)