DSCR Loans in Montana

What does Montana's $472K typical home rent for? About $1,680, which makes most Montana rentals appreciation bets, and the honest financing for many of them is a no-ratio DSCR loan backed by real reserves. If you want cash flow instead, look at Great Falls and Butte, where prices sit far below Bozeman.

$472K
Median Home Price
$1,680/mo
Median Monthly Rent
0.53x
Est. DSCR at Median
70+
Lenders in Network
Match Me With a Montana Specialist

Montana DSCR Loan Market

Montana's prices were set by people moving in with coastal equity, and its rents were set by people who work there. The typical home sits near $472K with rent near $1,680, so a median rental at 20% down lands far below 1.0. The effective property tax rate is a low 0.61%, and insurance averages about $314 a month, but neither changes the core problem, which is price.

That leaves three honest paths. The first is buying for appreciation in Bozeman, Missoula, Kalispell, or Whitefish with a no-ratio loan, a larger down payment, and the reserves to carry a monthly gap, which is what the sample deal below shows in Billings. The second is cash flow in Great Falls, Butte, and Billings, where prices sit well below the mountain towns and Malmstrom Air Force Base supports demand in Great Falls. The third is short-term rental income near Big Sky, Whitefish, and the Glacier and Yellowstone gateways.

Montana law is landlord-friendly, with minimal regulation.

LANDLORD-FRIENDLY STATE

Top Investor Cities

  • Billings
  • Missoula
  • Bozeman
Effective Property Tax Rate
0.61%

Monthly tax on $472,000 property: $240/mo

DSCR Loan Requirements in Montana

Licensing & Regulatory

Loans in Montana are originated by a licensed DSCR broker matched to your state. The matched broker holds the required state license; DSCRBroker.com is not the originator.

All lending decisions and terms are determined solely by the matched broker and their wholesale lending partners.

Common Property Types

  • Single-Family Rentals
  • Vacation Rentals
  • Condos/Townhomes

Down Payment & LTV

  • Standard DSCR: 20% minimum down (80% LTV)
  • No-Ratio DSCR: 30% minimum down (70% LTV)
  • 30%+ down unlocks No-Ratio DSCR programs and broader lender access

Appraisal & Rent Schedule

  • Form 1007 rent schedule required with appraisal
  • Appraisal estimates market rent for DSCR calculation
  • STR properties: AirDNA projected income accepted

Sample DSCR Deal in Billings, Montana

3-bed / 2-bath SFR

Purchase in Billings, Montana

DSCR
Purchase Price $405,000
Down Payment 35% ($141,750)
Loan Amount $263,250
Loan Type 30-Year Fixed No-Ratio DSCR

Monthly Breakdown

Principal & Interest $1,840
Property Tax $206
Insurance $400
Total PITIA $2,446
Monthly Rent $1,950
DSCR Ratio
0.80x
Monthly Cash Flow
-$496
Close Time
28 days
DSCR = $1,950 รท $2,446 = 0.80x

This borrower closed in 28 days with no income verification, no tax returns, and no employment check.

Results may vary. This is a representative example, not a guarantee of future performance.

This deal example is for illustrative purposes only and is based on representative scenarios across our broker network. Actual loan terms, approval, and closing depend on your full credit profile, property details, appraisal, and the matched lender's specific guidelines. This is not a loan offer or commitment to lend.

DSCR Loan Questions for Montana Investors

A no-ratio DSCR loan does not require the rent to cover the payment. The lender underwrites your credit, down payment, and reserves instead, and usually asks for more of each. In Montana, where a typical home near $472K rents for about $1,680, many good long-term holds will never hit 1.0 on a standard program. The sample deal below shows the tradeoff plainly: 35% down on a Billings home and a monthly shortfall you carry. Only do it with reserves to match.

Often, with an STR DSCR loan that qualifies on projected short-term income, but check the local rules first. Montana has no statewide ban, while cities and resort areas like Whitefish, Bozeman, and Big Sky set their own zoning, permit, and HOA limits, and several have tightened them. Seasonality is sharp, with summer and ski season doing most of the work. A lender looks at annual revenue, so underwrite the shoulder months honestly and confirm the permit before the appraisal.

It is a reasonable starting point. The effective rate runs about 0.61%, per the Tax Foundation's 2026 figures. Montana also changed how it taxes residential property in 2025, with different treatment for primary homes, long-term rentals, and second homes or short-term rentals, so how you use the property can move the bill. Ask your matched specialist to use the current classification and the actual levy for the address, especially if you plan to run it as a short-term rental.

Because it is honest. A Billings home near the local median does not produce enough rent to cover a DSCR payment at today's prices, and dressing that up would not help you. The sample shows a no-ratio loan at 35% down with a monthly shortfall the investor carries in exchange for long-term appreciation. If that trade does not fit your plan, look at Great Falls or Butte, or at small multifamily, where rents cover more of the payment.

Found your Montana market?

The city guides above get you to a shortlist. Your matched specialist takes it from there and structures the file around the property's rent, not your tax returns. 2 minutes. No SSN. No credit pull.

Match Me With a Specialist
70+ DSCR Lenders All 50 States No Credit Pull $0 Upfront Fees

Loans in Montana are originated by a licensed DSCR broker matched to your state. The matched broker holds the required state license; DSCRBroker.com is not the originator. The matched broker is not affiliated with DSCRBroker.com except as a participating broker in our matching network. All lending decisions and terms are determined solely by the matched broker and their wholesale lending partners.