Southwest Montana is one of the few places in the northern Rockies where $2M and $3M rental properties are routine. Most of them are in Big Sky, and the ones that qualify for a jumbo DSCR loan usually do so on short-term income, not a long-term lease.
In short: LendingStreet offers jumbo DSCR loans from about $1.5M to $5M+ on high-value 1-8 unit rentals in Bozeman, Big Sky and the Gallatin Valley for purchase, rate-and-term and cash-out. Loans qualify on the property's rent, or on projected short-term revenue on some STR programs, with no W-2s or tax returns and a 620 minimum credit score. Larger balances get more review and max LTV can be lower, varying by program.
Big Sky has ski-in, ski-out condos and townhomes, mountain homes near the resort and the Mountain Village, and larger homes in the Meadow Village and along the Gallatin Canyon. In and around Bozeman, high-value homes sit in the foothills south of town, along the Bridger Canyon corridor and in newer luxury subdivisions. Some valley properties on acreage also reach jumbo balances.
These markets behave very differently for a DSCR loan, as the table below shows.
A newer 5-8 unit building in northwest Bozeman can also reach jumbo size on long-term leases. Those files behave more like our standard 5-8 unit loans, just with a larger balance and a closer review. Expect the appraiser to compare rents with other new units in the valley.
| Property | Usual income | DSCR challenge |
|---|---|---|
| Big Sky condo or townhome | Short-term rentals | HOA dues, rental rules, seasonality |
| Big Sky mountain home | Short-term rentals | Large insurance and tax lines |
| Bozeman luxury home | Long-term executive lease | Few lease comparables, rent low compared with price |
| Newer 5-8 unit building | Long-term leases | Rent level on new units |
High-end homes in Bozeman do rent, often to executives, physicians and families relocating to the valley. But rents on those homes are low compared with their prices. For example, a $2,800,000 home leasing for $11,500 a month, with taxes and insurance of $2,200, would carry a total payment of about $14,616 even at 65% LTV, a DSCR near 0.79x.
That is well under the standard minimum. Investors who want to hold a luxury Bozeman home on a long-term lease usually need much lower leverage, a sub-1.0 DSCR program, or a property with a second rent such as a guest house.
Big Sky is unincorporated and allows short-term rentals, subject to HOA covenants and county rules. Lodging taxes apply, including a local resort tax. Some of our STR programs qualify on projected short-term revenue, such as a third-party projection, which lets a high-value ski property carry a jumbo payment that a long-term lease could not.
Programs differ in how they count revenue, seasonality and expenses. Expect a closer review on a jumbo STR file, including the projection source and the property's booking history if it has one.
Revenue in Big Sky is seasonal, with winter ski months and summer carrying the year. Make sure your own budget covers the slower spring and fall periods, even if the program averages revenue across twelve months.
This example is illustrative and not a quote. An investor buys a Big Sky home near the resort for $3,200,000. The program uses projected short-term revenue averaging $22,000 a month. HOA dues are $900, taxes $1,700 and insurance $900 a month.
At 70% LTV the loan is $2,240,000, estimated principal and interest is about $15,281, and the total payment is about $18,781, a DSCR of about 1.17x. At 65% LTV the loan is $2,080,000, the payment is about $17,689 and the DSCR is about 1.24x. A jumbo review would look closely at the revenue projection, the HOA rules and reserves before setting final leverage.
| Item | 70% LTV | 65% LTV |
|---|---|---|
| Loan amount | $2,240,000 | $2,080,000 |
| Estimated principal and interest | $15,281 | $14,189 |
| HOA, taxes and insurance | $3,500 | $3,500 |
| Total monthly payment | $18,781 | $17,689 |
| DSCR at projected revenue of $22,000 | 1.17x | 1.24x |
On larger balances, expect lower max LTV, higher reserve requirements and in some cases a second appraisal or review. Montana does not disclose sale prices, so appraisers rely on MLS data, and high-end mountain properties may have few comparables. Recent sales from Big Sky, Bozeman or similar resort areas may be used.
Your experience owning and managing high-value rentals also matters. A track record with STRs or luxury rentals strengthens the file.
Plan the down payment around the ratio, not just the program maximum. On a ski-area property with strong winter revenue and quieter shoulder seasons, a lower loan protects you through slow months and makes the review simpler. Having a professional management company with Big Sky experience in place is also a plus.
Wildfire exposure, snow loads, remote locations and high replacement costs can push insurance premiums up and narrow carrier choices. Get a binding quote early, and ask whether the carrier requires defensible space work, monitored alarms or other conditions on a remote home. Montana's 2025 property tax changes treat second homes and short-term rentals differently from long-term rentals, so confirm how your property will be classed and budget the tax line accordingly.
Owners of high-value Big Sky and Bozeman rentals can refinance for a better structure or take cash out. Cash-out limits on large balances are often lower and vary by program, and the rent or projected revenue must still cover the new payment. If you own several valley rentals, a blanket portfolio loan may be a better fit than refinancing each one.
A complete package speeds the review.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the property, price, income and target leverage. We will run the ratio at a few loan sizes and explain what a jumbo review will need. Call (877) 298-1001 or use the form below.
A DSCR loan from about $1.5M to $5M+ on a single high-value 1-8 unit rental, for purchase, rate-and-term or cash-out.
On some STR programs, yes, using projected short-term revenue, subject to HOA rules and a closer review.
Rents on luxury homes are low compared with their prices, so the ratio often falls well under 1.0x at normal leverage.
Often lower than on smaller loans, varying by program. Many files land between 60% and 70%.
No. The loan qualifies on the property's income, though reserves and experience get a close look.
Some jumbo programs require a second appraisal or review on very high-value properties.
Bozeman stopped allowing new non-owner-occupied whole-home STRs in 2023, so Bozeman properties are usually financed on long-term leases.
Yes. HOA dues are part of the monthly payment in the ratio, and in many Big Sky complexes they are large enough to change the loan amount.
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