Montana DSCR Loans for STR Financing
Grow Your Portfolio with DSCR Loans
Whether you're investing in STRs near Glacier National Park, long-term rentals in Billings, or vacation cabins in Bozeman, our DSCR loans
provide Montana investors with flexible, asset-based financing. These loans are designed to qualify you based on property income—not personal W-2s or credit scores. We assess whether your rental property can generate enough cash flow to cover the loan obligations. With high demand in seasonal and outdoor recreation markets, Montana offers strong cash-flowing opportunities. DSCR loans help you grow your portfolio faster by removing the hurdles of traditional income verification and letting the property speak for itself.
How to qualify
To obtain a quote, we will need the following information:
Property Value and
Purchase Price
Down Payment
Amount
Credit Score
Asset Types
- Single Family Homes
- Townhomes
- Condos
- 2 - 4 Units (Duplex, Triplex, Quadplex)
- Multi-Family: 5 - 8 Units
- Mixed-Use: 2 - 8 Units
- Multi-Family: 9+ Unit
Loan Terms
- Loan Sizes:
$100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
- Purchase LTV:
Up to 85%
- Rate & Term Refinance LTV:
Up to 80%
- Cash Out Refinance LTV:
Up to 80%
- Amortization:
30 Year % 40 Year Amortization Options Available
- Term Lengths:
5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
- Floor Rate:
5.50% (subject to change daily due to market volatility)
- Full Recourse
with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
- DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
- Vesting:
Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
- Average Time to Close:
14 to 35 days
Wondering if you qualify for investment property financing in your area?
We offer lending services in all 50 states!
Frequently Asked Questions
What is a DSCR loan and how does it work for Montana real estate investors?
A DSCR loan (Debt Service Coverage Ratio loan) is designed for real estate investors who want to qualify based on a property's income instead of personal finances. If the property's rental income covers the debt service—including the mortgage and related expenses—the investor may be approved without submitting W-2s or tax returns. This makes DSCR loans especially useful for those investing through LLCs or with variable income. In Montana, where investors seek out STRs and cabins near places like Bozeman, Missoula, and Yellowstone, DSCR loans support fast financing in competitive, seasonal markets.
How is DSCR calculated in a typical loan scenario for Montana investors?
Montana real estate investors calculate DSCR by dividing the net operating income (NOI) from a property by its annual debt obligations. If a Montana STR or rental earns $96,000 in NOI and has $80,000 in mortgage and related costs, the DSCR would be 1.20. This suggests the property brings in more income than required to cover the loan. Most Montana lenders look for at least a 1.00 DSCR, but a ratio of 1.15 or higher is preferred, especially near vacation markets like Bozeman, Missoula, or Big Sky. Understanding DSCR in Montana helps investors identify profitable, financeable properties that meet local lending benchmarks.
What is considered a good DSCR ratio when applying for financing?
A DSCR of 1.20 is generally considered strong in Montana. While 1.00 is the technical minimum accepted by most lenders, it leaves little room for market changes or unexpected expenses. A 1.20 DSCR in Montana shows that your rental income exceeds debt obligations by 20%, making your deal more attractive. Whether you're investing in Bozeman, Missoula, or Whitefish, understanding what counts as a good DSCR in Montana helps you target high-performing properties and secure flexible, investor-friendly financing terms.
Can I qualify for a DSCR loan if my personal income is limited?
Yes, you can qualify for a DSCR loan even if your personal income is limited. DSCR loans, often referred to as Airbnb loans when used for short-term rental properties, are designed to approve borrowers based on the income the property generates—not personal W-2s, tax returns, or debt-to-income ratios. Lenders calculate the property's debt service coverage ratio to determine if the income is sufficient to support the loan. As long as the DSCR meets the required threshold—usually 1.00 or higher—you can often be approved regardless of personal income. This makes Airbnb loans ideal for self-employed investors, business owners, or anyone scaling a rental portfolio without relying on traditional underwriting standards.
How does a lender evaluate rental income when approving a DSCR loan?
Montana lenders evaluate DSCR loans based on the income potential of the property—not your employment history or credit score. In Montana, documents like leases, STR income records, or rental appraisals are used to establish income. This is then compared to the property’s loan costs to calculate the DSCR. A ratio of 1.00 or higher is typically required for approval. DSCR loans in Montana allow real estate investors to qualify using asset performance alone. Understanding how rental income is evaluated in Montana helps buyers unlock lending flexibility and expand into new property markets confidently.
What’s the minimum debt service coverage ratio required for approval?
Montana lenders typically require a minimum DSCR of 1.00 for loan approval, ensuring the property’s income equals its debt service. In Montana, lenders may allow DSCRs down to 0.75 in select cases, especially for experienced investors or those with large reserves. A 1.20 DSCR or higher is ideal for securing competitive terms in Montana markets like Bozeman, Missoula, or Billings. DSCR loans in Montana are especially useful for those investing in seasonal or rural rentals. Understanding the minimum DSCR required in Montana gives investors a better chance at fast approval and reduced reserve requirements.
Who should consider using a DSCR instead of a traditional loan?
These loans are perfect for self-employed individuals, LLCs, and investors managing multiple properties. Montana investors often operate in seasonal or vacation markets, making DSCR loans a smart choice for qualifying based on rental income. In cities like Bozeman and Missoula, Montana borrowers can scale without the delays of traditional loan underwriting. DSCR financing in Montana favors fast closings and asset-based approvals.
