Montana investors buy everything from Billings duplexes to ski-town condos near Big Sky and Whitefish. Prices, acreage and local rental rules vary so much from town to town that lender fit depends on exactly where you are buying.
In short: The best DSCR lender in Montana is the one whose rules fit your town and property, whether that is a long-term rental in Billings or a short-term rental near a ski area. Compare rate, LTV, minimum DSCR, acreage limits, rural property rules and how projected STR revenue is treated. LendingStreet finances investment property in Montana with DSCR rates from 6.125%, up to 80% LTV on purchases and up to 75% on cash-out refinances. In Bozeman and the resort areas, high prices usually make the ratio the hurdle.
Kiavi, LendingOne, Angel Oak, Visio Lending and Griffin Funding also write DSCR loans, and Montana's local banks lend to investors on personal income. Rural and resort property is where their rules split most.
Before you compare rates, ask each lender about acreage caps, well and septic, wildfire-area insurance and short-term rental income. Then compare rate, lender and closing costs, prepayment terms and reserves on the same property.
Our DSCR loans qualify on the property's rent. Rates start at 6.125% for well-qualified borrowers and 6.49% for short-term rentals. Purchases go up to 80% LTV and cash-out refinances up to 75%, with a 620 minimum credit score.
No W-2s or tax returns are required, and LLC borrowers are allowed. The standard minimum is 1.0x, with sub-1.0 and no-ratio programs available. Rate-and-term refinances are also an option.
Billings is the largest city and a hub for energy, healthcare and agriculture, with moderate prices and plenty of single-family and small multifamily rentals. Great Falls has Malmstrom Air Force Base, and Helena, the capital, has steady government employment.
Missoula, home to the University of Montana, and Bozeman, home to Montana State, have strong rental demand and much higher prices. The Flathead Valley, including Kalispell and Whitefish, draws visitors headed to Glacier National Park. Big Sky, West Yellowstone and Red Lodge are resort and gateway towns with heavy seasonal demand.
Many Montana homes sit on larger lots with private wells and septic systems. DSCR programs often cap acreage and may value only the home and a limited amount of land. Wildfire risk affects insurance availability and cost in many western Montana areas, so get a quote early.
Short-term rental rules vary by city and county. Bozeman, Missoula and Whitefish regulate short-term rentals by type and zone, and some resort communities have HOA rental rules. Several resort towns also collect a local resort tax, even though Montana has no general sales tax.
This example is illustrative and not a quote. An investor owns a Billings duplex now valued at $440,000, with a $140,000 balance on the current loan. Each side rents for $1,600, so rent is $3,200 a month. Taxes and insurance are $520 a month.
At 75% LTV the new loan is $330,000. At a sample rate of 7.375% on 30-year amortization, principal and interest is about $2,279, the payment is about $2,799 and DSCR is about 1.14x. After paying off $140,000 and sample closing costs of $9,000, the investor takes out about $181,000 for the next purchase.
| Item | Amount |
|---|---|
| Appraised value | $440,000 |
| New loan at 75% LTV | $330,000 |
| Existing loan payoff | $140,000 |
| Sample closing costs | $9,000 |
| Cash to borrower | About $181,000 |
| Total monthly payment (P&I about $2,279 plus $520) | About $2,799 |
| DSCR at $3,200 rent | About 1.14x |
Resort-area rentals in Montana often have two seasons: summer for national parks and lakes, winter for skiing. Spring and late fall can be very slow. STR DSCR loans qualify on projected annual revenue, so those shoulder months count.
Condos in resort developments go through HOA review, and dues can be high. Confirm the HOA allows nightly rentals and that the city or county permit is in hand before you rely on STR income.
Bring the leases or a rent estimate, an insurance quote, details on well, septic and lot size, LLC documents and two months of bank statements. For a refinance, add your current mortgage statement and purchase settlement statement.
Send the property details first. The financing team will tell you whether it fits and come back with 2-3 options.
Yes. LendingStreet finances investment property in Montana, including Billings, Missoula, Bozeman, Kalispell, Whitefish and Helena. Loans are business-purpose on non-owner-occupied property, starting at $150,000.
Often, but many programs cap acreage or value only part of the land. A home on a standard lot in town has the most options.
Yes, if the property can legally be rented short term. STR DSCR loans qualify on projected annual revenue, with rates from 6.49% for qualified borrowers.
Up to 75% of the appraised value, minus your existing loan and closing costs. The rent must still cover the new, larger payment at the program's minimum ratio.
It can. Insurance must be in force, and a higher premium raises the payment and lowers DSCR. Get a quote before you go under contract.
No. The loan qualifies on the property's rent. You need a 620 or higher credit score and reserves.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.