DSCR Loans in Montana

Montana's booming resort markets and no state income tax attract DSCR investors seeking STR opportunities and long-term appreciation.

$455K
Median Home Price
$1,550/mo
Median Monthly Rent
0.80x
Est. DSCR at Median
70+
Lenders in Network
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MARKET OVERVIEW

Montana DSCR Loan Market

Montana has experienced significant price appreciation driven by remote workers and lifestyle migrants, particularly in Bozeman and surrounding areas near Big Sky Resort. Billings remains the most affordable major market. Montana has no state income tax, which attracts high-net-worth individuals. The state is landlord-friendly. Standard long-term DSCR ratios are tight due to high prices relative to rents, making the STR DSCR program and No-Ratio DSCR particularly relevant. Big Sky, Whitefish, and areas near Glacier and Yellowstone National Parks generate premium vacation rental income.

LANDLORD-FRIENDLY STATE

Top Investor Cities

  • Billings
  • Missoula
  • Bozeman
Effective Property Tax Rate
0.74%

Monthly tax on $455,000 property: $281/mo

REQUIREMENTS

DSCR Loan Requirements in Montana

Licensing & Regulatory

Loans in Montana are originated by [Broker A], NMLS# [XXXXXX], licensed in Montana.

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

DEAL EXAMPLE

Sample DSCR Deal in Billings, Montana

Single-Family Rental

Billings, Montana

DSCR
Purchase Price $345,000
Down Payment 25% ($86,250)
Loan Amount $258,750
Loan Type 30-Year Fixed DSCR

Monthly Breakdown

Principal & Interest $1,722
Property Tax $213
Insurance $170
Total PITIA $2,105
Monthly Rent $1,600
DSCR Ratio
0.95x
Monthly Cash Flow
-$5
Close Time
25 days
DSCR = $1,600 ÷ $2,105 = 0.95x

This borrower closed in 25 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.

FREQUENTLY ASKED

DSCR Loan Questions for Montana Investors

DSCR loans in Montana require a minimum 660 credit score, 20% minimum down payment, and non-owner-occupied status. No income docs or tax returns needed. Our No-Ratio DSCR and STR DSCR programs are popular in Montana's higher-priced markets.

Rates start from 5.99% for 740+ FICO with 35%+ down. Most Montana investors see rates between 6.50% and 7.75%.

Yes. Montana's tourism-driven areas near Big Sky, Glacier, and Yellowstone are prime STR markets. Our STR DSCR program uses projected income to qualify. Some Montana resort communities have STR regulations.

Montana's effective property tax rate is approximately 0.74%, below the national average. On a $345,000 property, that's about $213/month. The low tax rate helps partially offset the tighter DSCR ratios from higher property prices.

Yes. DSCR loans have no owner-occupancy requirement. Montana attracts significant out-of-state investment, particularly in resort communities. The state's no income tax policy is an additional draw.

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Loans in Montana are originated by [Broker A], NMLS# [XXXXXX], licensed in Montana. 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.