Find competitive financing for your new home in Big Sky Country.
Montana, like many states, offers a range of financing options when it comes to purchasing a home. Banks and credit unions offer fixed- and variable-rate mortgages in terms of 15 to 30 years, with veterans and first-time homebuyers potentially eligible for government-backed perks.
Mortgage lenders in Montana
Your best borrowing option depends on whether it’s your first home, you’ve saved for a down payment and can qualify for government-backed loans, like those through FHA or USDA.
Look for the lowest rates and strongest terms you’re eligible for by comparing the benefits and drawbacks of at least three lenders.
Mortgage lenders for veterans in Montana
Veterans, servicemembers and eligible spouses may be eligible for more relaxed down payment and other requirements through mortgages backed by the US Department of Veteran Affairs (VA).
Eligible veterans in Montana can be approved for a VA mortgage limit of up to $484,350 for a single-family home without a down payment as of 2019.
How to find lenders and rates in Montana
Compare at least four main factors when weighing the best lenders for home financing in Montana:
- Interest rates. If you plan to live in your home for the long haul, a low rates can add up to big savings over 30 years of amortization.
- Fees. Factor in whether your lender charges application, maintenance, appraisal, insurance, prepayment and other fees before signing the contract.
- Terms. A traditional 30-year mortgage tends to offer lower monthly payments than a 15-year term, but you’ll pay more in interest over the longer term.
- Type. A fixed rate allows for predictable payments until payoff, while adjustable rates tend to start at a lower rate, rising or falling with the market after one to three years or more.
When shopping for a mortgage, ask about down payment requirements, typical closing costs and help along the way.
What to consider when looking for a mortgage in Montana
If your household is among those with a low to moderate annual income, ask about options assistance available through the Montana Board of Housing. Among its services are helping with down payments, homebuyer education and direct loan support.
If you’re already a credit union member, you may be eligible for competitive rates and terms on your next mortgage. These institutions rarely sell your mortgage to the secondary market, allowing you to build on your established relationship. But you do not find options beyond a traditional 30-year term.
Closing cost fees in Montana
Our research indicates that you’ll pay $2,720 in closing fees after taxes on a home sale price of $200,000 to $300,000 — which is lower than what you’ll pay in neighboring Wyoming and Idaho.
If you’re low income, a veteran or an active member of the military, start with government-backed support for lower rates, stronger terms and more flexible approval than traditional mortgages. Banks and credit unions offer more flexible terms and perks to those who qualify, especially if you have solid credit.
Shop around to find a mortgage that best fits your home, finances and long-term plans in the great state of Montana.