Ready to buy a home in Treasure State?
Known for its wide-open skies and majestic mountains, Montana provides a peaceful retreat from city life. Your perfect home could be a rustic lodge in Whitefish or a lakeside home on Flathead County.
Whether you’re a first-time homebuyer or new to Montana’s housing market, this guide will teach you everything you need to know. We’ve broken down the entire home-buying process into 13 actionable steps.
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Key Takeaways:
- Get Pre-Approved ASAP: In a buyer’s market like Montana, a pre-approval letter helps you stand out.
- Save Thousands with Assistance Programs: Programs like “Regular Bond Loan Program” provide a 30‑year, fixed‑rate first mortgage geared toward first‑time homebuyers. Ensure you research downpayment assistance programs thoroughly.
- Don’t Skip Montana-Specific Inspections: A roof and heating system inspection is often required for homeowner’s insurance in Montana. Proper maintenance and wildfire risk mitigation can help protect your home and may lower your premium.
- Ask for Credits, Not Repairs: If the inspection has issues, ask the seller for credit at closing. This allows you to hire your own contractors and prevent closing delays.
- Protect Your Investment and Your Wallet: Remember to protect your home from wildfire and winter storm damage, as standard policies don’t cover it.
How to Buy a Home for the First Time in Montana: 13 Steps!
This step-by-step guide walks first-time home buyers in Montana through everything, from assessing finances and budgeting for a down payment to choosing the right mortgage. These 13 steps make the Montana real estate process clear, simple, and manageable.
Step 1: Assess Your Finances
As a first-time home buyer in Montana, the two factors that should matter the most to you are your credit score and Debt-to-Income (DTI) ratio. Additionally, you must also consider how much you can afford for a down payment, a monthly mortgage, taxes, and insurance.
What Is Your Credit Score?
A credit score is a three-digit number that indicates your creditworthiness to lenders. The minimum credit score to buy a house in Montana depends on the type of mortgage you get.
Minimum and Ideal Credit Scores by Loan Type
| Loan Type | Minimum Score | Ideal Score |
|---|---|---|
| FHA | 500 (10% down) | 580+ (3.5% down) |
| Conventional | 620 | 740+ for best rates |
| VA | No minimum* | 620+ |
| USDA | No minimum* | 640+ |
*Government programs don’t set minimums, but lenders often do.
Portfolio mortgage loans are easy to qualify for. Here, the credit score needed to buy a house starts at around 580. VA loans are available only to veterans and active-duty service members, and require a score of 620. FHA loans also accept scores as low as 580. They are good for buyers with lower credit scores looking for houses in Montana.
When purchasing property in Montana, you can check your credit score using several reliable methods. Most of them are free and will not harm your score:
- Annual Credit Reports: Federal law entitles you to one free credit report every 12 months from each of the three major credit bureaus: Equifax, Experian, and TransUnion. These can be accessed through the official, government-authorized website, AnnualCreditReport.com.
- Credit Monitoring Services: Many banks, credit card issuers, and financial service apps provide complimentary and regular access to the FICO score. This is a convenient way to track your credit health over time.
Knowing how to repair your credit score is important to get better mortgage rates. If you’re a first time home buyer in Montana, here’s what you need to do:
- Pay down credit card balances and make all payments on time.
- Avoid opening multiple new accounts quickly.
- Consider becoming an authorized user on a family member’s account with a good history.
- Monitor your score regularly to track progress.
How to Calculate Your Monthly Mortgage Payment in Montana?
As a first time home buyer in Montana, knowing your average mortgage payment helps you plan your budget. Your total payment includes 4 key components, often called PITI:
- Principal and Interest: This is a major chunk of your payment, covering the amount you borrowed (principal) and the cost of borrowing (interest). It’s determined by your loan amount, interest rate, and loan term.
- Taxes: Montana property taxes are based on your home’s assessed value. The lender holds these funds in an escrow account and pays the tax on your behalf.
- Insurance: Lenders require you to have homeowners’ insurance to protect the property. The annual premium is usually divided by 12 and added to your monthly payment, also managed through the escrow account.
Apart from PITI, your monthly payment may also include Private Mortgage Insurance if your down payment is less than 20%, and HOA fees.
What Is a Debt-to-Income (DTI) Ratio?
Your debt-to-income ratio shows how much of your monthly income goes toward debt payments, including mortgage, car loans, credit cards, and student loans. To calculate it, add all monthly debts and divide the total by your gross pre-tax monthly income.
A high DTI can prevent you from qualifying for a mortgage, as it shows that you struggle to manage your debt. For the best mortgage rates and a higher likelihood of mortgage approval in Montana, aim for a DTI ratio of 36% or lower.
💡 You can still qualify for a loan in Montana despite a high DTI if you have compensating factors like a strong credit history, significant cash reserves or savings, stable long-term employment, etc.
Recommended DTI Ratios by Loan Type
| Loan Type | Recommended DTI Ratio | With Compensating Factors |
|---|---|---|
| Conventional | 36% back-end | 45-50% |
| FHA | 43% back-end | Up to 50% |
| VA | 41% | Can exceed 50% with the residual income test |
| USDA | 41% back-end | 44% with strong credit |
To improve your DTI ratio for a mortgage, you can either reduce your monthly debts or increase your verifiable income.
- Pay Down Debt: Use a tax refund or bonus to clear smaller loans, or consolidate multiple debts into a single loan with a lower monthly payment.
- Increase Verifiable Income: Ask for a raise, take on part-time work, or start a side business. Include all consistent income sources on your application, such as bonuses or commissions, but remember that lenders require a two-year history for secondary income.
- Adjust Your Housing Budget: A larger down payment reduces your loan amount and your monthly mortgage payment. You can also consider a lower home purchase price to keep your future housing costs down.
Step 2: Budget for Your Down Payment and Closing Costs
You should set aside money for the down payment and closing costs. Montana’s first time home buyer programs help make homeownership accessible and affordable.
How Much Down Payment Does a Montana First Time Home Buyer Need?
Typically, the down payment on a house for a first time home buyer in Montana usually ranges from 3% to 20% of the property’s price. However, it can vary based on the loan type. FHA loans require just 3.5% down, while some conventional loans allow a 3% down payment.
To help with these upfront costs, there are many state and local down payment assistance programs in Montana. They provide grants or loans to cover these expenses.
👉 First-Time Home Buyer Programs in Montana: Find out which is the #1 downpayment assistance program in the Treasure State.
How to Estimate Closing Costs in Montana?
Closing costs are fees and expenses paid at closing beyond your down payment. Typically, buyer closing costs in Montana usually range from 2% to 5% of the home’s price. So, for a $547,000 home, buyers might pay $10,940 to $27,350.
These fees cover lender charges, appraisals, inspections, title insurance, taxes, agent commissions, and recording fees when buying a property in Montana.
Step 3: Get Pre-Approved for a Mortgage
Secure your financing early by getting pre-approved for a mortgage as a first time homebuyer in Montana. This step helps you understand your budget and strengthens your offer when buying a house in Montana.
How to Get Pre-approved as a First Time Home Buyer in Montana?
You need to follow these steps to get pre-approved when buying a house in Montana:
- Gather Financial Documents: Provide proof of income (recent pay stubs and W-2s), tax returns (last two years), asset statements, debt information, and a government-issued ID.
- Choose a Lender and Apply: Compare lenders in Montana and submit a mortgage application to get the best rates and terms.
- Receive Pre-Approval Letter: The lender verifies your info and issues a letter stating your approved loan amount, usually valid for 30–90 days.
A mortgage preapproval turns you from a casual house hunter to a serious buyer in Montana, as it:
- Strengthens Your Offer: 86% of the sellers prefer buyers with a pre-approved mortgage. For the strongest position, ask for a fully underwritten pre-approval, where the lender has already verified all your documents.
- Defines Your Budget: It clarifies exactly how much you can afford, allowing you to focus your home search on a realistic price range.
- Speeds Up Closing: With much of the financial vetting already completed, the mortgage process is streamlined once your offer on a home is accepted.
Yes, you can get pre-approved and even buy a home with bad credit in Montana. However, your loan options may be limited. You can also expect higher interest rates with poor credit.
Step 4: Choose the Right Mortgage
As a first time homebuyer in Montana, assess your finances and select a loan that fits your budget and qualifies you for available programs.
| Feature | Conventional | FHA | VA | USDA |
|---|---|---|---|---|
| Min Credit Score | 620 | 580 (500 w/10% down) | No minimum | 640 |
| Min Down Payment | 5% to 20% | 3.5% | 0% | 0% |
| Max DTI | 45% to 50% | 43% to 50% | 41%+ | 41% to 44% |
| Mortgage Insurance | PMI if <20% | Always | None | Always |
| Loan Limits | $766,550+ | $498,257 to $766,550 | $766,550+ | Varies |
| Property Eligibility Criteria | Few Restrictions | Must meet FHA standards | Must meet VA standards | Rural areas only |
Step 5: Decide Where to Buy a Home in Montana
Deciding where to buy is one of the most important steps for a first time homebuyer in Montana. Consider factors like local housing markets, popular neighborhoods, cost of living, and amenities to help you find the best places to live in Montana.
Why Now Is the Time to Buy in Montana
The Montana housing market is a buyer’s market. You now have more negotiating power and a wider selection of properties to choose from:
- Housing Supply is High: Montana has a 6-month housing supply, which is the benchmark for a buyer’s market.
- Prices Have Stabilized: The median home price has remained relatively constant at $547,000. This allows you to set your budget with more certainty.
- Sellers are Negotiating: 25.8% of homes in Montana have seen price drops, signaling increased seller flexibility.
- Homes are on the Market Longer: Properties are taking an average of 78 days to sell, which allows you to make more informed decisions.
These trends show that now is the best time to buy a house in Montana. According to Mauricio Umansky, founder of The Agency, the current market provides “great opportunities for buyers to be aggressive and write strong offers.”
Popular Areas for Different Buyer Types
With the market now in your favor, you can be more selective about where you buy. Use this advantage to find a neighborhood that matches your priorities, whether it’s schools, commute, or lifestyle.
- Best Areas for Families: Neighborhoods like Valley West, Baxter Meadows, and Harvest Creek are top choices for their excellent schools and family-friendly parks. If you envision life in a community-oriented neighborhoods, explore homes for sale in Bozeman, MT. Properties with access to top-tier schools and parks typically range between $474,000 to $700,000.
- Best Areas for Retirees: For those seeking an active retirement, Rattlesnake Valley, South Hills, and Seeley Lake offer top-tier healthcare and vibrant social activities. If you are interested in a community renowned for its active lifestyle, consider homes for sale in Missoula, where prices generally range from $250,000 to $450,000.
- Best Areas for Young Adults: Areas like West End and The Heights offer thriving job markets and vibrant social scenes. If a cosmopolitan lifestyle is what you seek, browse the latest Billings houses for sale, where you can find modern condos and apartments starting at just $200,000.
Consider the Cost of Living When Choosing a Location
When looking for the best place to buy a house in Montana, consider the overall cost of living, as lower home prices can be offset by higher taxes or insurance.
- High-Cost Areas: Bozeman and Whitefish are 8-16% above the national average.
- Moderate-Cost Areas: Helena and Billings are near or just below the national average.
- Low-Cost Areas: Pensacola, Gainesville, and Tallahassee are 7 to 10% below the national average.
Step 6: Start House Hunting in Montana
Once you’re pre-approved and know where you want to live, the next step is finding the right house. As a first-time home buyer in Montana, you have two options:
- Work with a Realtor.
- Search for homes online.
An experienced agent can give you valuable local insights and expert guidance on neighborhood trends. However, you’ll have to negotiate the buyer agent commission with the seller, which may raise the home sale price.
If you prefer to take the lead, a high-tech platform like Houzeo is what you need. Whether you’re looking for beachfront mansions, high‑rise penthouses, spacious big homes, or luxury homes in Montana, Houzeo has you covered. You can browse through thousands of listings, set alerts, and save your search. You can even schedule showings and submit offers, all by yourself.
Don’t Just Browse. Buy.
Your entire home purchase, managed in one place.
Download the Houzeo Mobile AppStep 7: Schedule and Attend Home Showings
After you narrow down your list of potential homes, schedule and attend showings to see each property in person. For a first-time home buyer in Montana, visiting homes firsthand helps you evaluate condition, layout, and neighborhood, especially since rural and mountain properties can vary widely in quality and access.
During the showing, ask specific questions like:
- How long has the home been on the market?
- Why is the owner selling?
- What is the age of the roof, HVAC system, and water heater?
- Are there any HOA fees or pending special assessments?
- Is the property located in a floodplain, wildfire-prone, or snow-heavy area?
When buying a home in Montana for the first-time, check the property carefully during the open house. Look for roof sagging, foundation cracks, water damage, or poor insulation which are common issues in older or mountain homes that face extreme weather.
As a first time home buyer in Montana, there are three main aspects you need to focus on when shortlisting homes:
- Insurance Risks: Check if the property is in a floodplain, wildfire-prone area, or avalanche zone using FEMA maps and local hazard resources. Also, consider coverage for well or septic system issues, common in rural areas.
- Commute and Lifestyle: Test your commute during rush hour. Visit the neighborhood at different times to check for noise from traffic, airports, or nightlife. Ensure convenient access to key amenities like schools, groceries, and parks.
- Montana Home Loans/Assistance Program Eligibility: If applying for a state or county first-time buyer program, ensure the property meets program requirements, including location, type, and purchase price limits, to avoid losing eligibility.
👉 Note: If multiple major risks stack up like an older roof, suspect electrical, moisture indicators, or weak condo reserves, move the property down your shortlist.
Step 8: Make an Offer
When crafting an offer, make a competitive bid but stay within your budget. As a first-time home buyer in Montana, consider factors like the home’s market value, recent comparable sales, and any repairs needed. This increases your chances of getting a fair deal.
Step 1: Analyze Recent Sales
Your agent will pull up real estate comps that are similar to the one you want. Focus on the final sale price, not the list price. In many Montana markets, home prices are growing slowly or have leveled off, so check local comps carefully before making your offer.
Step 2: Adjust for the Home’s Condition
Factor in the age and condition of the roof, HVAC, and other major systems. For example, if a comparable home sold for $547,000 with a new roof, but your target home needs a $20,000 roof replacement, adjust your offer to account for that cost.
Step 3: Factor in Today’s Market
Some Montana markets currently have more inventory and slower growth, giving buyers more negotiating power. For a fairly priced home, consider offering 3–5% below list, and adjust lower only if comps and home condition support it.
What is an Earnest Money Deposit in Montana?
An earnest money deposit is a “good-faith” payment that shows you are a serious buyer. This money is held in escrow and applied towards your down payment at closing.
Earnest money is usually held in a non–interest-bearing escrow account unless both parties agree otherwise. If a dispute arises, the broker must hold the funds until it’s resolved, and once your offer is signed, it becomes legally binding. Backing out without cause can mean forfeiting your deposit.
In Montana, the standard deposit is 1% to 3% of the purchase price. On a $547,000 home, this would be between $5,470 and $16,410. In highly competitive markets like Bozeman or Missoula, sellers may expect a higher deposit.
Once your offer is accepted, you typically have 3-5 business days to submit the deposit to an escrow agent, such as a title company or real estate attorney.
Yes, you can get your earnest money deposit back in Montana, but only if you back out of the sale for the following reasons:
- The inspection reveals major issues, and you exercise the inspection contingency.
- The appraisal comes in low, and you exercise the appraisal contingency.
- You’re unable to secure the required financing, and exit during the financing contingency period
- Title issues are discovered.
Many Montana first time home buyers forfeit their earnest money because:
- They back out after the contingency periods expire without a valid reason.
- They violate contract terms.
- The seller meets all contract obligations, but the buyer still refuses to close.
Step 9: Conduct Home Inspections
First-time home buyers in Montana should schedule home inspections to uncover any issues before buying a house. You typically get the inspection report within 24 to 48 hours.
Which Montana Home Inspections Should You Schedule?
A standard home inspection in Montana isn’t enough. The state’s unique climate and weather risks require a few specialized inspections:
- General Home Inspection ($300-$500): A licensed inspector will examine everything from the roof to the foundation. They pay special attention to storm damage, proper drainage, and the age of the AC unit.
- Radon Test ($100-$250): Montana has area with high radon levels; testing is strongly recommended.
- Sewer/Septic Inspection ($170-$300): Septic inspection is important in homes with private septic systems, common in rural areas.
- Pest Inspection ($120-$180): A pest inspection for rodents or carpenter ants is recommended for all homes.
Consider Other Specialized Inspections
Based on the property, a Montana first-time home buyer may want to conduct additional tests. For older homes, a fireplace inspection can detect blockages, cracks. or fire hazards. If you see large cracks or uneven floors, a $750 foundation inspection is worth the investment.
It’s not recommended. Even if you plan to buy cheap homes in Montana, skipping a home inspection can lead to unexpected repair costs.
Step 10: Complete the Home Appraisal
After the inspection, your lender will typically order a home appraisal, which professionally values the property to ensure it matches your offer.
Why Do Lenders Need Appraisals?
A home appraisal in Montana confirms the property’s market value. Appraisers typically focus on the following parameters:
- Lot Size and Usability: Larger lots or rural acreage are common in Montana. Appraisers assess the size, terrain, and any zoning restrictions that may affect property value.
- Insurance and Mitigation Features: Appraisers consider roof condition, foundation stability, and systems like HVAC, which affect insurability.
- Condo/HOA Health: Appraisers closely examine a condo association’s financial health. They look for anything that may reduce the unit’s value, like the association’s reserve funds or any pending special assessments.
A standard appraisal in Montana costs between $350 and $650 and typically takes 7 to 14 days to complete. For luxury or waterfront properties, the cost and timeline can be higher.
If the appraisal comes in lower than your offer price, you have an appraisal gap. In such a situation, you can either:
- Renegotiate the Price: Ask the seller to lower the price to the appraised value. In the current market, many sellers are willing to negotiate.
- Cover the Gap: If the seller won’t budge, you can choose to pay the difference in cash.
- Dispute the Appraisal: If you believe the appraiser made a factual error or used poor comparable sales, you can file for a Reconsideration of Value.
- Walk Away: If you cannot reach an agreement, your appraisal contingency allows you to cancel the contract and get your earnest money back.
Step 11: Negotiate Repairs and Credits
As a first time home buyer in Montana, use your home inspection results to negotiate repairs and request credits from the seller. This step can help reduce unexpected costs and ensure your new house is move-in ready.
How to Use Your Inspection Report to Negotiate Repairs?
Your negotiation strategy should center on issues that impact the home’s safety, structural integrity, and insurability. Minor cosmetic flaws are not worth fighting over and can make you seem unreasonable. It’s easy to make this mistake as a first home buyer in Montana.
Focus your request on these critical areas:
- Safety Hazards: This includes outdated and dangerous electrical panels, faulty wiring, or missing safety features like GFCI outlets near water.
- Structural Problems: Any issues with the foundation, load-bearing walls, or the roof structure.
- System Failures: A failing HVAC system, major plumbing leaks, or an old roof.
Get 2 to 3 written estimates from licensed contractors for any major repairs. A repair request that includes professional quotes shows you are serious and have done your homework.
Should You Ask for Repair Credit?
While you can ask the seller to perform the repairs themselves, it’s better to ask for credit instead. Credit gives you the funds to hire your own contractors and ensures the work is done to your standards, not just the cheapest way possible. It also allows the sale to proceed on schedule, without any delays.
How to Negotiate Seller Concessions
Seller concessions are a powerful tool for reducing your out-of-pocket closing costs when buying real estate in Montana. Here, the seller pays for some of your expenses, such as the appraisal, title insurance, or property taxes.
Your ability to negotiate concessions depends on your loan type. Each loan program sets a maximum limit on how much a seller can contribute:
| Loan Type | Minimum Down Payment | Maximum Seller Concession |
|---|---|---|
| Conventional | Less than 10% | 3% of the purchase price |
| Conventional | 10% or more | 6% of the purchase price |
| FHA Loan | Any amount | 6% of the purchase price |
| VA Loan | Any amount | 4% of the purchase price |
| USDA Loan | Any amount | 6% of the purchase price |
Step 12: Review Your Closing Costs
After negotiating repairs and credit as a first time home buyer in Montana, review all closing costs carefully. Check title fees, escrow, insurance, and taxes so you can finalize your budget and confidently buy your house.
Understanding Closing Costs in Montana
- Montana-Specific Taxes ($1,500+): You’ll only pay county recording fees (typically $20 per page) and sometimes a filing fee typically around $10 if the document doesn’t meet standard formatting requirements.
- Title Fees ($1500 to 2,500): These fees cover the title search, settlement services, and title insurance policies for both you and your lender. In Montana, the buyer and seller negotiate who pays for the owner’s title insurance
- Third-Party Fees ($800 to $1,200): This category includes the appraisal fee, credit report fee, and flood certification fee.
- Prepaid and Escrow Costs ($2,500 to $5,000): You will pay for your first year of homeowners’ insurance upfront. You will also fund your escrow account with several months of property tax and insurance payments to cover future bills.
Step 13: Close on Your New Home
Closing day is the moment you officially become the owner of your new Montana home. Its success depends on a careful final walk-through, a smooth funding process, and making sure all legal documents are properly signed and recorded.
Complete Your Final Walk-Through
Within 24 hours of closing, you will do one last walk-through of the property. This is not a formal inspection, but rather your final chance to see if you want this home. Use this checklist:
- Verify Repairs: Bring your inspection report and repair addendum. Confirm that all negotiated repairs have been completed to a professional standard.
- Test Everything: Run the air conditioning and test all appliances. Make sure every system is functioning as it should.
- Check for Included Items: Ensure all items that were supposed to be included in the sale, like appliances, window treatments, and light fixtures, are still in place.
- Look for Signs of Additional Damage: Make sure no new damage has occurred since your last visit. If you see any issues, notify your agent and the title company immediately before you sign any documents.
Sign the Documents
While there are numerous documents to sign, the most important ones are:
- The Closing Disclosure: You will sign the final version of this document, which outlines all your loan terms and costs.
- The Promissory Note: This is your legal promise to repay the loan. The promissory note outlines the loan amount, interest rate, repayment schedule, and maturity date.
- The Mortgage: This document secures the property as collateral for your loan.
Once you have signed everything, you will provide your “cash to close” amount via a cashier’s check or wire transfer. After your lender sends their funds to the title company, the deal is officially funded.
Get Your Keys and Celebrate
Once the deal is funded, the title company will record the new deed with the county, officially transferring ownership to you. After they pay the seller and other parties, you will finally get the keys to your new home.
Congratulations, you are officially a Montana homeowner! 🎉
🚩 What are the Red Flags to Look for When Buying a House in Montana?
A new home is a huge financial investment. To ensure that you don’t sink your money into a dud, look out for these red flags:
1. Bargain-Priced Homes
An asking price that’s significantly lower than comparable homes in the area seems like a dream come true. But that’s just until the roof collapses or faulty electrical systems burn the house down.
In Montana, a “too good to be true” price could also indicate problems like well or septic system failures, frozen plumbing, or deferred heating repairs (especially relevant in harsh winters). Always check the home’s sale history and get estimates for necessary repairs before making an offer.
2. Neighborhood Sell-Out
If you notice too many “For Sale” signs in the same subdivision or street, it’s a red flag. It might mean rising property taxes, limited job opportunities, or infrastructure issues (like unpaved or poorly maintained roads in rural areas).
Talk to potential neighbors to get their opinion on the area. You can also check community social media pages or online forums like Nextdoor for discussions about local issues.
3. Excessive Use of Air Fresheners
A few scented candles create a welcoming atmosphere, but if a home smells like a lavender bubble burst in it, then there’s something fishy. Strong scents can be used to mask odors from mold, moisture issues, or rodent infestations.
These are common in Montana homes due to seasonal snowmelt and moisture buildup. Check basements, crawl spaces, and areas around plumbing for damp or musty smells. If you detect a musty odor, ask for a separate mold inspection along with the standard home inspection.
4. Sloping or Uneven Floors
Floors that are noticeably slanted or feel bouncy can indicate foundation problems. Given Montana’s freeze-thaw climate, this can be due to foundation settling or frost heave. Minor settling may be acceptable in older homes, but significant slopes signal a major structural issue.
Bring a marble or a golf ball with you to showings and place it on the floor in different rooms to see if it rolls. Also, look for other signs of foundation issues, like large zigzag cracks in the drywall, especially above door frames.
5. Condensation in Windows
Condensation inside double-pane windows often means broken seals, but in Montana, this is also a sign of poor insulation or humidity imbalance in winter. Faulty seals reduce energy efficiency, a big issue in a cold climate where heating costs are high. Check window frames for drafts and cracked caulking, and use repair estimates to negotiate a fair price.
What Should You Do After Closing?
Welcome home! Now it’s time to handle a few must-dos to protect your investment:
- File for PTAP: If the house is your primary residence, apply for Montana’s Property Tax Assistance Program to reduce your property taxes. You could save up to 80% on your taxes, depending on income level and home value.
- Set Up Utilities: Get the water, electric, internet, and trash services connected. Don’t forget pest control and do a well, septic, and propane inspection.
- Get Insurance: Homeowners insurance is required if you’re financing. In Montana, focus on coverage for winter storm damage, snow/ice roof load, wildfire risk (if near forested areas), and water backup from frozen pipes.
- Home Maintenance Plan: Montana’s climate demands ongoing care. Schedule furnace inspections before winter, clean gutters and downspouts to prevent ice dams, inspect your roof for snow load capacity.
How to Buy a House in Montana Without a Realtor?
Research neighborhoods and browse listings on trusted sites like Houzeo. Then, schedule showings directly with sellers or their agents. You can also hire a real estate attorney to review contracts and handle legal details.
Next, get pre-approved for a mortgage, make an offer, schedule inspections, and negotiate repairs. With the necessary due diligence, you can buy a house without a Realtor.
Which First Time Home Buyer Programs in Montana Can You Apply For?
Various programs make homeownership accessible for a first time home buyer in Montana. They assist with down payments through grants or low-interest, deferred-payment loans. Applicants must meet the income and credit score criteria and complete a homebuyer education course to avail of these programs.
| Program Name | Eligibility | Grants | Key Benefit |
|---|---|---|---|
| Regular Bond Program (Montana Bond Loan) | First‑time buyers or buyers in targeted areas | Access to 30-year, fixed-rate first mortgage loans | Can be combined with down payment assistance |
| HomeStretch | Homebuyers in participating counties (22 counties) | Shared‑equity assistance up to ~30% of home purchase price | Makes homeownership more attainable for buyers who meet income limits |
| Bond Advantage Down Payment Assistance Program | First‑time buyers who qualify for the Montana Bond-loan program | Up to 5% of the sales price (max ~$15,000) for down payment/closing costs | Lowers upfront costs when paired with a qualifying first mortgage |
| MBOH Plus 0% Deferred Down Payment Assistance Program | First‑time buyers with credit score ≥620, meeting income limits | 0% interest deferred loan up to ~$15,000 | Helps cover down payment and closing costs with no monthly payments until sale or refinance |
| Set-Aside Loan Program | Buyers eligible for a Bond Program loan who receive assistance from approved organizations | $1,500–$45,000 depending on location | Reduces upfront expenses with favorable interest rates and flexible repayment |
1. Regular Bond Program (Montana Bond Loan)
- Eligible Buyers: First-time homebuyers or buyers in federally designated “targeted areas.”
- Credit Score: Minimum 620.
- Assistance: Low-interest 30-year fixed-rate mortgage, with optional pairing to down payment assistance.
The Montana Bond Loan Program is the core financing option offered by Montana Housing. It provides affordable fixed-rate mortgages to first-time buyers and can be paired with other assistance programs like Bond Advantage or MBOH Plus for added financial support.
2. HomeStretch Program
- Eligible Buyers: Homebuyers purchasing in participating Montana counties, typically first-time buyers with incomes between 60% and 140% of the Area Median Income (AMI).
- Credit Score: Varies by lender, usually 620+.
- Assistance: Shared-equity assistance covering up to 30% of the home’s purchase price.
The HomeStretch Program helps Montana buyers bridge the gap between what they can afford and the home’s purchase price. Assistance is offered as shared equity, meaning repayment occurs only when you sell or refinance. It’s designed to promote long-term affordability across Montana’s 22 participating counties.
3. Bond Advantage Down Payment Assistance Program
- Eligible Buyers: First-time homebuyers who qualify for the Montana Housing Bond Program loan.
- Credit Score: Minimum 620.
- Assistance: Up to 5% of the sales price (max around $15,000) for down payment or closing costs.
The Bond Advantage Program provides financial assistance to Montana first-time homebuyers. It’s paired with a Montana Housing first mortgage, making homeownership more accessible by reducing upfront costs like the down payment or closing expenses.
4. MBOH Plus 0% Deferred Down Payment Assistance Program
- Eligible Buyers: First-time buyers who meet Montana Housing income and purchase price limits.
- Credit Score: Minimum 620.
- Assistance: 0% interest deferred loan up to about $15,000 for down payment and closing costs.
The MBOH Plus 0% Deferred Program offers a no-interest, deferred-payment loan to cover upfront homebuying expenses. Borrowers don’t make payments until they sell, refinance, or transfer the property, easing the financial burden of buying a first home in Montana.
5. Set-Aside Loan Program
- Eligible Buyers: Borrowers qualifying for a Montana Housing Bond Loan who receive funds from approved nonprofits or agencies.
- Credit Score: Minimum 620.
- Assistance: Additional loan support of $1,500–$45,000 depending on county and funding partner.
The Set-Aside Loan Program works alongside Montana’s Bond Loan Program to help low-to-moderate-income buyers access affordable housing. It leverages local partnerships to provide extra funds for down payment or closing costs, improving accessibility for those with limited savings.
» First Time Buyer Programs: Find the perfect program that helps you get the key to your first home.
What Should You Know Before Buying a House in Montana?
Before you buy a home in the Treasure State, you must understand the factors that can impact your budget and lifestyle.
What are Some Additional Costs When Buying Houses in Montana?
Apart from the purchase price, you must account for several other expenses, like property taxes and potential HOA fees. However, the most critical consideration for any Montana homebuyer is insurance.
- Why Homeowners Insurance is Crucial: Montana homes are exposed to wildfire, wind, hail, heavy snow, and flood damage in certain regions.
- Insurance Costs: : Annual premiums vary widely depending on the property’s location, age, and condition. Many parts of western and southern Montana are considered high-risk wildfire zones. Check whether your insurer provides coverage for fire-related losses or requires a separate wildfire endorsement.
- Choosing the Right Policy: Make sure your policy provides adequate coverage for wind, hail, wildfire, and flood risks. Homes with features like a newer roof or storm-resistant windows may qualify for lower premiums.
Do You Need Separate Wildfire Insurance in Montana?
Yes. Standard homeowners insurance may cover some fire damage, but in many parts of Montana, especially rural or forest-adjacent areas, separate wildfire coverage is highly recommended. Your property’s wildfire risk depends on location, surrounding vegetation, and construction type.
| Wildfire Risk Zone | Description | Insurance Recommendation |
|---|---|---|
| High Risk | Homes near forests, grasslands, or dry brush zones | Supplemental wildfire insurance is highly recommended or may be required by lenders |
| Moderate Risk | Homes in towns or suburban areas with some vegetation nearby | Optional wildfire coverage is recommended for added protection |
| Low Risk | Homes in urban areas with minimal vegetation around | Standard homeowners insurance may be sufficient, but check policy for exclusions |
When is Wildfire Insurance Required?
Whether you need wildfire insurance in Montana depends on your mortgage lender and your property’s location. Two main situations make it essential:
- Homes in High Wildfire Risk Areas: If your property is in a designated high-risk wildfire zone, many lenders will require wildfire or extended fire coverage as part of your homeowners insurance policy.
- Lender Requirements for Other Properties: Some lenders may also require wildfire coverage for homes in moderate-risk areas if they consider the exposure significant, especially for properties near forests or grasslands.
Why First-Time Homebuyers Should Explore Montana Now?
Montana is a smart choice for first-time buyers, thanks to its relatively low property taxes and a housing market that now favors buyers. Cities like Missoula and Bozeman’s mix of urban and suburban living, there is a community to fit every lifestyle and budget. With thousands of homes for sale and numerous down payment assistance programs, homeownership is more attainable than ever.
» Houzeo Reviews: Read what customers have to say about Houzeo, Montana’s best home buying website.
