Developers propose affordable housing complex on Appleway Drive in Kalispell
Mach LLC, an affordable housing developer, is proposing a 24-unit apartment complex off Appleway Drive just south of U.S. 2.
Known as the Outpost at Kalispell, the development will boast a mix of one- and two-bedroom apartments geared toward households making from 50% to 60% of the area median income, which is roughly $102,000, according to government-sponsored enterprise Fannie Mae. The apartments — one-bedroom units will encompass 714 square feet while two-bedroom units will come in at 954 square feet — will be rented at roughly 30% below the average market rate.
"Really hitting the workforce income level," said Matt Belles of Mach.
Three of the units will be set aside for veterans, victims of domestic violence or young people aging out of foster care, according to Mach.
The apartments will be fitted with electric kitchen appliances, in-unit washer and dryers, and a balcony or patio.
But before the development can come to fruition, Mach is asking for $8.5 million from the 2026 Montana Housing Tax Credit program, overseen by the Montana Board of Housing to support the construction or preservation of affordable homes.
The awarding of the tax credits will be announced in October, according to Mach's Grant Schnell. The entire project is estimated at around $8.7 million.
While the program is competitive, Schnell is optimistic. Mach is the only applicant in Flathead County. Other developments are proposed in Anaconda, Missoula and Billings.
Mach and co-developer TE Miller are both behind previous developments in Kalispell but have never built affordable housing in the city.
"Basically, our focus is on affordable housing in the state of Montana as well as the Mountain West," Schnell said.
The Community Action Partnership of Northwest Montana is partnering with the developers on the project. The nonprofit connects individuals with community programs like heating and rental assistance.
Partnering with a nonprofit ensures that rents remain affordable, and Director of Project Development Cassidy Kipp said that Community Action Partnership will engage residents with services it provides that promote self-sustainability.
"We will do everything in our power to support responsible growth of affordable housing," she said.
Kalispell is a tough place to develop in because of high construction and land costs, but workforce housing is a necessity in the Flathead Valley, Schnell said.
He plans to go through the city approval process after the funds are awarded.
"We want to be good stewards of the community and know we're going to need to be good neighbors as well," Belles said.
Reporter Jack Underhill may be reached at 758-4407 and junderhill@dailyinterlake.com.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 days ago
- Yahoo
Jumbo vs. conventional loans: What's the difference?
Key takeaways A jumbo loan is actually a type of conventional loan — just bigger than usual, as the name implies. Because they exceed the loan limit set by the Federal Housing Finance Agency (FHFA), jumbo loans are considered nonconforming and have stricter lending guidelines. Conforming loans of lower amounts have less stringent credit criteria and lower down payment requirements. Overview: Jumbo loans vs. conventional loans A conventional loan is a mortgage that's originated and financed by a private lender, rather than the federal government. By that definition, a jumbo loan can actually be a type of conventional loan, so it's not exactly an apples-to-apples comparison. A better comparison might be jumbo conventional loans, which are nonconforming, versus conforming conventional loans. Shop Top Mortgage Rates Personalized rates in minutes A quicker path to financial freedom Your Path to Homeownership Conventional mortgages can be either conforming or nonconforming. A conforming mortgage meets the requirements set by the Federal Housing Finance Agency (FHFA) — the most common of these stipulates that the size of the loan be set at or below certain dollar limits. These limits vary from state to state, and even by counties within states. For 2025, the conforming loan limit is $806,500 in most areas, and up to $1,209,750 in higher-priced places. When a mortgage is conforming, it is eligible for Fannie Mae and Freddie Mac to buy on the secondary mortgage market. Knowing that these government-sponsored entities, major players in the mortgage industry, can purchase a mortgage greatly reduces a lender's risk in offering it. A jumbo loan is a conventional loan, but since it doesn't conform to the FHFA standards due to its size, it's considered nonconforming. If you're financing the purchase of a high-priced home, a jumbo loan can allow you to borrow the amount you need, even if that amount is higher than the conforming loan limit. Many mortgage lenders offer jumbo loans up to $3 million or $5 million. You might be able to find jumbo loans in even higher amounts, especially if you work with a mortgage broker who's a jumbo specialist. Key differences between jumbo and conforming loans While jumbo and conforming loans are both conventional loans, there are some significant differences to be aware of. Jumbo loans Conforming loans Minimum credit score 700 620 Minimum down payment 20-25% 3-5% Minimum DTI ratio 36-43% 43-50% Cash reserves Up to 12 months Up to 6 months Rates Higher due to elevated risk Could be lower, depending on your financial profile Qualifying for a jumbo loan While there are several qualifying factors that impact whether you can get a jumbo loan, the most important is your credit score. The minimum required is higher, for a start: 700 for a jumbo, as opposed to 620 for a conforming conventional loan. And while you can qualify with the minimum credit score, the best mortgage rates go to borrowers with scores of 740 or higher. You should also be prepared to make at least the minimum down payment — which, not surprisingly, is typically a larger percentage of the purchase price than for a conforming conventional loan. And you'll also need to meet the lender's debt-to-income (DTI) thresholds, which tend to be lower (that is, take up less of your monthly earnings). It's possible, eventually, to refinance a jumbo loan into a conventional conforming loan — provided the jumbo's remaining balance is at or below your area's conforming loan limit. Mortgage rates for a jumbo loan Many jumbo loan rates may actually be lower than those on some conforming loan offers, since lenders still want to remain competitive. Otherwise, jumbos tend to be influenced by the factors that move mortgage rates and interest rates in general, such as the benchmark federal funds rate the Federal Reserve sets. The particular interest rate you'll get, of course, depends on your personal financial circumstances. Most jumbo loans are conventional loans backed by private lenders. However, jumbo FHA and VA loans do exist — the maximum amount you can borrow may not be as big as that of conventional jumbos, though. Deciding which loan is right for you Jumbo and conventional conforming loans each have unique purposes, so it's important to choose the right one for your situation and financing needs. You might benefit from a jumbo loan if: You are purchasing a high-priced home You are purchasing in an area with a high cost of living You have a high income and an excellent credit score Your monthly debt load is low You can make a down payment of 20 percent or more A conforming loan may be a better option if: You are purchasing a moderate home, priced within the local loan limits You have a lower income Your credit score is just 'good' or 'fair' You have little savings or financial assets You have limited funds available for a down payment FAQs Are jumbo loans more difficult to qualify for? Yes — the lending criteria for jumbo loans are tighter than for conforming loans, mainly because the loan amounts are higher. In addition, they pose an elevated risk to lenders, because they can't be sold on the secondary mortgage market as easily. Is mortgage insurance required for jumbo loans? Not usually, because most lenders require a down payment of at least 20 percent to get a jumbo loan. Since that 20 percent threshold is met (or exceeded), private mortgage insurance is not required. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Yahoo
Can House-Hacking Open the Door to Big Wealth for First-Time Real Estate Investors?
According to the most recent data from 13% of homes purchased in 2024 were done so by an investor. However, investor selling also reached an all-time high, with investors accounting for 10.8% of sellers in 2024. If you're looking to invest in real estate, you could get started in 2025 by embracing a strategy that has been gaining popularity on social media. Read More: For You: Personal finance influencer Austin Hankwitz recently shared a video on TikTok about how house-hacking can unlock wealth for first-time real estate investors. Here's a breakdown of how you can accomplish this, as well as some tips for new investors looking to get started with this approach. How House Hacking Can Unlock Wealth The way that house-hacking works is that you invest in a home to live in but share the expenses by having tenants. With this approach, you live in a unit and rent out the other space so that you're not stuck with the bills on your own. Hankwitz suggested that you use the Fannie Mae mortgage to purchase a home with a 5% down payment. With this mortgage, you can borrow up to $1.4 million to buy up to four units, he explained. Here are some of the specifics of the figures used by Hankwitz for his house-hacking example of a home in Knoxville, Tennessee, with four units. House listing price: $650,000 Down payment: $32,500 (5% of $650,000) Monthly payment with insurance and taxes: $4,200 Then, you could collect $3,000 monthly from three tenants and pay $1,200 for your unit. The listing states that the cash flow is $40,000 per year, derived from $46,800 in annual rent. Since this home has appreciated by 50% over the past decade, you can use this logic to estimate similar growth in the next decade, Hankwitz explained, noting it could be worth $975,000 in 10 years. At that time, you'd have $530,000 left on your mortgage, which tenants have mainly paid. When you do the math, $975,000 minus $530,000 is $445,000, which is how much equity you have in a home you've paid only $1,200 monthly to live in. This example illustrates how you can put down only $32,500 to get access to an expensive home where you'll pay only $1,200 monthly for your own expenses. Check Out: How Feasible Is House-Hacking? 'House-hacking allows beginners to generate income from their primary residence, helping to offset mortgage costs while gaining hands-on landlord experience,' said Nathan Miller, a real estate expert and founder of Rentec Direct. While many experts agree that this strategy makes sense, let's explore the feasibility of this option for first-time investors looking to build wealth. There Are Many Options for House-Hacking Miller pointed out that house-hacking is most commonly seen in duplexes, triplexes and larger units where the buyer lives in one unit and rents out the other. However, some other creative approaches are growing in popularity, like converting basements or garages into accessory apartments or adding an accessory dwelling unit or tiny home to a property. Andrew Fortune, a Realtor and owner of Great Colorado Homes, noted that he recently had a client who converted a garage into an Airbnb and rented it out, which paid his mortgage plus some. The good news is that as a first-time investor, you have multiple options for utilizing this strategy, from purchasing a duplex to listing your converted garage on Airbnb. You can turn extra space into a profitable rental, or you can seek out unique listings. House-Hacking Could Help You Reduce Living Expenses 'House-hacking can be especially valuable for early investors with limited capital, as it can reduce your own living expenses and accelerate loan payoff,' Miller said. 'It's smart to partner with a real estate agent who understands income-generating properties and can help you find a home that fits both your lifestyle and financial goals based on what renters in your area are looking for.' When you live in one of the units and rent out the others, you lower your own living expenses, which helps you save money while building up your wealth. Not only are you helping yourself today, but you're also preparing for the future. You Can Purchase a Property That Would Be Out of Your Reach On top of reducing your living expenses, you could also purchase a property that you wouldn't be able to afford on your own. If you use an FHA loan, you might need only a 3.5% down payment, which is significantly less cash than buying a purely investment property. If you use the mortgage mentioned in the video, you could get access to a million-dollar listing that might normally be out of reach. You'll Want To Learn About Being a Landlord and Household Repairs The experts warned that you need to be aware of local regulations and ensure you're prepared to be a landlord. 'The real secret is that you're learning how to be a landlord while living on-site, which makes managing repairs and tenants much easier,' Fortune said. While house-hacking can help you get into real estate, you have to ensure that you're aware of what you're signing up for. As a landlord, you'll be responsible for all of the maintenance, repairs and any other issues that could pop up. The experts agreed that if you're smart about picking the right property and can keep up with maintenance, house-hacking can kickstart your wealth and even cover your living expenses. However, you want to conduct your due diligence to ensure that you know what you're getting yourself into because managing tenants could turn into a full-time gig. More From GOBankingRates Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why This article originally appeared on Can House-Hacking Open the Door to Big Wealth for First-Time Real Estate Investors? Sign in to access your portfolio
Wall Street Journal
4 days ago
- Wall Street Journal
The Home-Builder Heir Who Is Stoking the Jerome Powell Frenzy
The Federal Housing Finance Agency, created in 2008 to oversee mortgage giants Fannie Mae and Freddie Mac, has historically been a sleepy agency run by a relative unknown. Bill Pulte is turning that on its head.
