Montana now taxes homes differently depending on how they are used. Qualifying long-term rentals and primary residences get lower treatment than second homes and short-term rentals, so the same Bozeman house can carry two very different tax bills.
In short: LendingStreet offers jumbo DSCR loans of about $1.5M to $5M+ on high-value 1-8 unit rentals in Montana, qualified on the property's rent with no W-2s or tax returns. In Montana, jumbo balances usually come from Bozeman and Big Sky, Whitefish and the Flathead Valley, Missoula, and resort homes in Red Lodge and Livingston. Montana has no sales or transfer tax, is a non-disclosure state, and recently changed property tax treatment by use, so how a rental is classified affects the ratio.
Gallatin County is the center of the market. Bozeman has strong long-term demand from Montana State University and a growing tech and healthcare workforce, and Big Sky has high-value ski homes near Big Sky Resort. Livingston and Paradise Valley add homes near Yellowstone.
In the northwest, Whitefish, Kalispell and Bigfork near Flathead Lake and Glacier National Park have lake and mountain homes rented in summer and ski season. Missoula has multi-unit buildings near the University of Montana, and Billings and Helena are mainly long-term rental markets.
| Area | What a jumbo balance usually buys | Main underwriting issue |
|---|---|---|
| Bozeman | Large home or 5-8 unit building on leases | Comparable leases, city STR limits |
| Big Sky | Ski home rented nightly | Resort tax, snow load, revenue history |
| Whitefish and Flathead | Lake or mountain home | STR zoning, wildfire |
| Missoula | Multi-unit building near campus | City STR rules, combined rent |
Montana is a non-disclosure state, so sale prices are not public record. In Big Sky, Whitefish and rural Gallatin County, appraisers may have few recent comparable sales, and large balances get closer review.
Resort homes earn unevenly between ski season, summer and the quiet months. Underwriting looks at projected revenue across the full year.
Montana reappraises property on a two-year cycle, and recent reappraisals raised values sharply in Gallatin and Flathead counties. In 2025 the legislature changed the system so that primary residences and qualifying long-term rentals are taxed more lightly than second homes and short-term rentals. Confirm how your property will be classified, since it can change the tax line meaningfully.
Montana has no real estate transfer tax and no sales tax. Closing costs are mainly title, recording, appraisal and lender fees.
Much of western Montana sits in wildfire country, and some insurers have tightened coverage in high-risk areas. Mountain homes carry heavy snow loads, and rural properties often rely on wells, septic systems and private roads.
This example is illustrative and not a quote. An investor buys a Bozeman home for $1,550,000 that leases for $8,800 a month. Because it is a qualifying long-term rental, taxes are budgeted at $750 a month. Insurance is $450.
At 70% LTV the loan is $1,085,000 and estimated principal and interest is about $7,402, for a total monthly payment of about $8,602 and a DSCR of about 1.02x. At 60% LTV the loan is $930,000, estimated principal and interest is about $6,344, the payment is about $7,544 and DSCR is about 1.17x.
If the same home ran as a short-term rental, it could face a higher tax class, which would change the ratio. Ask the county how it verifies long-term rental use, and keep your leases on file.
| Item | 70% LTV | 60% LTV |
|---|---|---|
| Purchase price | $1,550,000 | $1,550,000 |
| Loan amount | $1,085,000 | $930,000 |
| Estimated principal and interest | $7,402 | $6,344 |
| Property taxes | $750 | $750 |
| Insurance | $450 | $450 |
| Total monthly payment | $8,602 | $7,544 |
| Monthly rent | $8,800 | $8,800 |
| DSCR | About 1.02x | About 1.17x |
Bozeman restricts whole-home short-term rentals in many residential zones, Missoula has its own limits, and Whitefish allows them only in certain zones. Big Sky, as an unincorporated resort community, has a resort tax and HOA rules. Check the city, county and HOA before you rely on nightly income.
Some programs qualify a short-term rental on projected revenue, which works best in Big Sky and areas zoned for nightly rentals.
A jumbo DSCR loan is the same rent-based loan investors use on smaller rentals, sized for higher-value property. The lender divides the monthly rent by the full housing payment: principal, interest, taxes, insurance and any HOA dues. The standard minimum is 1.0x, and sub-1.0 programs exist for some files.
What changes with size is the level of review. On larger balances, maximum LTV is often lower than the headline limits, reserve requirements are often higher and some programs ask for a second valuation. Exact limits vary by program.
Sometimes the better answer is a different structure. A blanket portfolio loan combines five or more rentals, each 1-8 units, under one loan with portfolio pricing and release provisions, and some programs allow properties in more than one state. A 5-8 unit building qualifies on combined rent and often shows stronger coverage than a single home at the same price.
If the ratio is close, a larger down payment or a sub-1.0 DSCR program may work. For 9+ unit buildings, see our commercial loans page.
These documents move a large file along:
Our investor loans are business-purpose loans on non-owner-occupied property. Tell us the address, price, rent and how much you want to borrow; the team will check coverage on realistic taxes and insurance and come back with options. Get a quote with the form below or call (877) 298-1001. For broader context, see our Montana DSCR loans page.
Yes. Recent legislation gives qualifying long-term rentals and primary residences lighter tax treatment than second homes and short-term rentals. Confirm your property's classification.
No. Montana has no real estate transfer tax and no sales tax.
Whole-home short-term rentals are restricted in many residential zones. Check the city's current rules before you buy.
DSCR programs have no stated maximum. Jumbo loans generally run from about $1.5M to $5M+, and larger balances get more review and often a lower maximum LTV.
Yes. Underwriting uses the property's rent instead of W-2s or tax returns. You will still need a 620 or higher credit score and proof of funds.
Yes. Most jumbo DSCR borrowers close in an LLC, and members typically sign for the loan personally.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the property must be a rental.
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