Montana is a land of promise and plenty, which is why so many real estate investors have chosen to seek out fortune under these wide-open skies. About a third of the state's population is renters, meaning long-term rentals are popular here.

In addition, sprawling national parks like Glacier National Park and Yellowstone captivate millions of tourists, assuring savvy investors of plentiful rental income from vacation stays and hospitality businesses.

If you're ready to join the real estate rush here in Montana, DSCR loans are your best bet. They rely solely on the property's cash flow, meaning you'll have plenty of loan options if your rental property generates sufficient funds to pay your annual debt.

Visio Lending is the foremost DSCR loan lender in the United States, helping thousands of investors purchase the rental properties of their dreams.

We provide convenient loan terms and a streamlined debt service coverage ratio loan process, ensuring you can start making passive income from rental properties as soon as possible.



Why Purchase Investment Properties with Montana DSCR Loans?

Montana is a great place for real estate investing; the low cost of living means that property is quite affordable, and the state has incredibly low property tax rates.

The effective tax rate is only 0.74%, which is far lower than the national average of 0.99%.

There's also a robust tourism economy thanks to the eight national parks in Montana, netting $618.9 million in tourism revenue in 2020. Glacier National Park and Yellowstone are the two most popular, which receive about 3.6 million annually.

All these tourists need hotels, restaurants, and shopping options, which represents a great boon for investment properties.

DSCR Loans Offer a Streamlined Application Process

One of the reasons that real estate investors love Montana DSCR loans is because, unlike a conventional mortgage, a DSCR loan is almost entirely focused on the property's ability to generate sufficient cash flow rather than their finances.

To access DSCR loans, you don't need to show tax returns, pay stubs, or your debt-to-income ratio: all lenders require is a reasonable credit score, a down payment, and proof of the property's cash flow. 

To determine a property's cash flow lenders will use a DSCR calculator to make sure the property's rental income is higher than the principal, interest, association dues, taxes and insurance (PITIA).

A DSCR loan application is fast and efficient, meaning borrowers can start building a real estate portfolio quickly.


Requirements for DSCR Loans: Montana

The primary concern with DSCR loans is the property's ability to generate sufficient cash flow to cover loan payments rather than the borrower's financial profile, as evident from the stipulations for DSCR loans in Montana.

  • Minimum credit score between 680 and 700
  • Minimum DSCR of at least 1.0; most lenders prefer a higher DSCR of 1.25
  • Rental property appraisal and rent schedule
  • Loan to Value (LTV) of 80% or less
  • At least 20% down payment and closing costs payment

Interest Rate and Prepayment Penalty for DSCR Loans 

Interest rates for DSCR loans are about 1% to 2% higher than for a conventional loan, but you can refinance for a lower rate. You'll have a prepayment penalty if you make loan payments ahead of schedule.


Best Places to Pursue Montana DSCR Loans

Montana DSCR Loans

📍 Billings

Home to the fascinating rock formations known as the Rimrocks, Billings is also known as Montana's Trailhead for its proximity to the dramatic Beartooth mountain range.

Though small, Billings is in the world's top 28 most expensive cities compared to its cost of living, making it one of the most competitive places for DSCR loans in Montana.

The median rental income here is $1,300, while commercial spaces make approximately $10.75 per square foot.

📍 Bozeman

Beautiful Bozeman is one of the best investment opportunities for those pursuing short-term rental property, as the surrounding Rocky Mountains are known for many outdoor recreational activities.

Accordingly, Bozeman is more expensive than other areas, with rents of about $2,600. The average commercial rental income is about $31.26 per square foot, making it quite pricey compared to Billings.

📍 Great Falls

Great Fall's long-standing commitment to hydroelectric energy makes it a promising place for sustainability startups, and commercial investment properties are promising here. Rental income is around $1,232 monthly, while office rental property costs about $14.73 per square foot.

📍 Helena

The state capital is affordable for residential and commercial spaces: the median rent is $1,495. Retail spaces net about $7 per square foot, while office spaces are around $14 per square foot. A DSCR loan can put you far ahead of the competition when seeking investment opportunities here.


Closed DSCR Loans Montana

Check out some of Visio Lending's recently closed DSCR loans in Montana.


Big Sky STR


  Big Sky, MT

  • $1,300,000 Loan Amount
  • Cash-Out Refinance
  • STR 
  • DSCR: 1.003
Bozeman STr


Bozeman, MT

  • $652,500 Loan Amount
  • Purchase
  • STR
  • DSCR: 1.61
Butte LTR


Butte, MT

  • $202,500 Loan Amount
  • Purchase
  • LTR
  • DSCR: 1.239


montana map

Our DSCR Loans in Montana have:

  • · Full 30 year terms, no balloons for rental residential properties

  • · The ability to finance in an LLC

  • · No tax documents or personal income verification

  • · Real estate investor-friendly loan programs

  • · Interest only loan options


Contact Us to Start Your Loan