HELOC Loans in Montana

Home Equity Line of Credit (HELOC)

Montana homeowners can take advantage of increasing home values by using a HELOC (home equity line of credit) to access flexible financing. Whether you’re renovating in Bozeman, covering tuition in Missoula, or consolidating debt in Billings, a HELOC allows you to borrow as needed during a multi-year draw period. These loans typically come with variable interest rates and require 15%–20% equity and a credit score of 620 or higher. For homeowners seeking a one-time lump sum and predictable payments, a home equity loan may be a better fit. Montana borrowers can find competitive rates through local banks, credit unions, and online lenders.

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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

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Frequently Asked Questions

What is a HELOC and how does it differ from a home equity loan?

A HELOC in Montana provides a revolving line of credit secured by your home’s equity. You can draw funds during the draw period and repay over time, with interest charged only on what you use. A home equity loan gives you a lump sum with fixed monthly payments. HELOCs are ideal for flexible or phased projects. Home equity loans work best for one-time, defined expenses. Your repayment preferences and funding needs should guide your choice.

How do HELOC rates work and what affects the interest rate?

HELOC rates in Montana are generally variable and influenced by the prime rate, your credit score, income, and loan-to-value ratio. Some lenders offer fixed-rate HELOC options or intro APR deals. Montana credit unions may offer favorable terms to members, especially in smaller markets. Comparing local and regional lenders helps you secure the best mix of rate, fees, and repayment flexibility.

Can I qualify for a home equity loan in Montana with low credit?

Yes, Montana homeowners may still qualify for a home equity loan with low credit if they have strong equity and verifiable income. Most lenders prefer scores above 620, but some may approve borrowers in the 580–620 range.Credit unions in Montana tend to offer more flexible underwriting than national banks. Expect higher interest rates and stricter documentation requirements with lower credit scores.

How much equity do I need in my home to get a HELOC?

In Montana, most lenders require at least 15%–20% equity to qualify for a HELOC. This means your existing mortgage should not exceed 80%–85% of your home’s appraised value.Lenders also review credit score, income, and existing debt. Homes in high-growth markets like Gallatin or Flathead County may provide higher equity access due to property appreciation.

Are home equity loans in Montana better for large expenses?

Yes, home equity loans in Montana are often ideal for major one-time expenses like home improvements, vehicle purchases, or medical bills. These loans come with fixed interest rates and consistent monthly payments.If your borrowing needs are ongoing or spaced out, a HELOC may offer greater flexibility. Choose the option that best fits your spending pattern and repayment comfort.

What are typical equity rates and loan terms in Montana?

In Montana, HELOC APRs typically range from 7% to 10%, depending on your credit profile, available equity, and lender. Most HELOCs include a 10-year draw period and a 10- to 20-year repayment phase.Home equity loans offer fixed rates and terms between 5 and 30 years. Montana lenders—especially credit unions—may offer reduced fees, member discounts, or special rate programs. Shop around to find your best fit.

Exploring equity loans beyond Montana? Check out HELOC programs in Idaho , North Dakota , South Dakota , and Wyoming...