Billings is not a luxury rental market in the way Bozeman or Big Sky are. A $1.5M+ rental loan here usually means a newer 8-unit building, several buildings financed together or, less often, a large home on the Rims or the West End.
In short: LendingStreet offers jumbo DSCR loans from about $1.5M to $5M+ on high-value 1-8 unit rentals in Billings and Yellowstone County for purchase, rate-and-term and cash-out, qualifying on rent with no W-2s or tax returns. Larger balances get more review and maximum LTV can be lower, varying by program. In Billings, newer 5-8 unit buildings and portfolios are the most common jumbo-size borrowers, because large single-family homes rarely rent for enough to support a jumbo payment.
New townhome-style buildings and small apartment buildings on the West End and in the northern Heights can reach jumbo values, especially eight-unit buildings with three-bedroom units and garages. Investors who own several six- and eight-plexes may also reach jumbo balances by financing them together.
High-end single-family homes exist along the Rims, around Yellowstone Country Club and in some West End subdivisions, but their rents are usually far too low relative to value to support a large DSCR loan. Be realistic before planning a jumbo loan on a single luxury home here.
The difference from resort markets is important. In Bozeman, Whitefish or Big Sky, high-value homes can draw high rents or short-term revenue. In Billings, the rental market is built on local jobs, which supports steady long-term rents but rarely luxury-level rents.
The loan still qualifies on rent, the minimum credit score is 620 and 30-year terms are available. On larger balances, expect lower maximum LTV, higher reserves and closer review of the appraisal and rent roll.
Pricing on jumbo balances is set case by case, based on leverage, credit, reserves and the property. A fully leased building with documented rent gets the strongest terms.
| Item | Standard DSCR | Jumbo DSCR |
|---|---|---|
| Balance | $150,000 to $1.5M | About $1.5M to $5M+ |
| Purchase LTV | Up to 80% | Often lower; varies by program |
| Reserves | Program standard | Often higher |
| Common Billings property | Duplex or fourplex | Newer 8-unit building or portfolio |
This example is illustrative and not a quote. An investor buys a newly built eight-unit townhome building on the West End for $2,400,000. Each three-bedroom unit rents for $1,750, $14,000 in total. At 65% LTV, the loan is $1,560,000.
Estimated principal and interest on a 30-year term is about $10,908. Taxes are budgeted at $1,500 a month and insurance at $700, for a total payment of about $13,108 and a DSCR of about 1.07x. Higher leverage would push the ratio below 1.0x, which is why jumbo loans on Billings buildings often use lower LTVs.
A lower LTV means more cash in the deal, but it also leaves room in the ratio for vacancy, rising insurance and tax changes, which matters on a building of this size.
| Line item | Monthly |
|---|---|
| Rent, eight units | $14,000 |
| Estimated principal and interest | $10,908 |
| Taxes | $1,500 |
| Insurance | $700 |
| Total payment | $13,108 |
| DSCR | About 1.07x |
Montana does not disclose sale prices publicly, and sales of newer 8-unit buildings are few. Appraisers may rely on income and on sales from other Montana markets. Provide the rent roll, leases, construction costs if new and any known comparable sales.
Brand-new buildings may not have a full year of operating history. Signed leases, a rent roll and a realistic expense budget help support income until history builds.
Montana property taxes depend on the Department of Revenue's appraised value and on how the property is classified. Under recent legislation, a qualifying long-term rental can be taxed differently from a second home or short-stay property, and the owner may need to file for that status. Verify the rules and deadlines with the Department of Revenue and the county treasurer.
On a $2M+ building, the tax line is large, so classification can noticeably change the ratio.
Confirm how each unit will be classified before closing, since a building leased on long-term leases may qualify for a different rate than one used for short stays.
Owners of high-value buildings can refinance to a 30-year term or pull cash, with cash-out up to 75% LTV on standard programs and often lower on jumbo balances. Montana has no transfer tax, so refinance closing costs stay focused on lender, title and appraisal fees.
Run the ratio at a few loan amounts before choosing how much equity to pull, since the payment on a large cash-out can quickly push the ratio toward 1.0x.
If your equity is spread across several Billings rentals, a blanket portfolio loan on five or more properties can reach a jumbo-size balance with one closing and portfolio pricing, qualifying on combined cash flow. Properties can be in more than one state on some programs.
Release provisions on a blanket loan let you sell one building and pay down its share, which gives more flexibility than one large loan on a single asset.
Newer townhome buildings attract tenants who expect garages, in-unit laundry and prompt snow removal. Meeting those expectations keeps vacancy low and supports the rents used to qualify. Budget for management, landscaping, snow removal and reserves for roofs and exteriors, which take a beating from Billings hail and winters.
Insurance on a new building is often more favorable than on older stock, but hail deductibles still apply. Review the policy each year and keep records of roof inspections and any claims.
Send the address, value, rent roll and target loan amount. Our investor loans are business-purpose loans on non-owner-occupied property. Call (877) 298-1001 or use the form below.
Possibly, but large homes here rarely rent for enough to support a jumbo payment. Newer multi-unit buildings and portfolios are more common.
About $1.5M to $5M+ on a 1-8 unit rental. Larger balances get more review, and pricing is set case by case.
Maximum LTV is often lower on larger balances and varies by program.
No. Jumbo DSCR loans qualify on rent. Credit, reserves and the property are reviewed, and the minimum credit score is 620.
No. Montana has no real estate transfer tax. Closing costs on a large purchase are mainly lender fees, title insurance, escrow, recording and appraisal.
With income, construction costs and available comparable sales, which can be limited in Montana.
Yes. A blanket portfolio loan can cover five or more properties. Properties can be in more than one state on some programs, and release provisions let you sell one building later.
Often, since newer roofs and systems lower risk. Hail deductibles still apply, so review the policy details.
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