Montana Second Home Loans and Mortgage Solutions

Financing Your Dream Second Home

Looking to purchase a second home in Montana? Whether you’re eyeing a cabin in Big Sky, a lake house in Flathead, or a quiet retreat in the Bitterroot Valley, BNB Lending offers second home loans built for part-time personal use. We help you understand Montana’s property tax structure, short-term rental rules, and eligibility requirements. Our team ensures your loan is structured to meet lender standards and local compliance needs. With competitive rates and fast closings, BNB Lending makes your Montana second home financing process smooth and secure.

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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

Wondering if you qualify for investment property financing in your area?


We offer lending services in all 50 states!

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Frequently Asked Questions

What are the requirements for a second home loan in Montana?

Montana second home loans follow Fannie Mae’s federal lending guidelines. The property must be a single-unit dwelling that is livable year-round and personally occupied for part of the year. It cannot be held by an LLC or primarily used for short-term rentals. Most lenders require 10–20% down, strong credit, and verified income. While Montana does not add any state-specific loan restrictions, some towns or HOAs may have usage limitations. BNB Lending evaluates your property, occupancy intent, and financial profile to confirm second home loan eligibility.

How do short-term rental rules affect loan classification?

Short-term rental use may impact whether a home qualifies as a second home or must be financed as an investment property. If rented frequently, your lender may reclassify the loan. Montana has no statewide STR law, but cities like Bozeman or Whitefish may impose licensing and lodging tax requirements. The state charges a 4% lodging tax on short stays, with local add-ons in some areas. At BNB Lending, we evaluate your intended use and local regulations to ensure your financing aligns with both lender criteria and municipal laws.

Do second homes qualify for property tax breaks in Montana?

Montana second homes do not qualify for any homestead exemptions or residential-only classifications. All real estate is assessed the same way, with a base tax rate of approximately 1.35%. Homes valued over $1.5 million are taxed at 1.89% for the amount exceeding that threshold. There’s no distinction between primary and secondary residences in Montana’s property tax law. BNB Lending helps estimate your annual tax obligations and incorporates these figures into your overall financing strategy to ensure transparency and affordability.

Can I deduct mortgage interest on a second home?

While Montana does not impose income tax, mortgage interest on second homes may still be deductible on your federal return if you itemize. The IRS allows interest deductions within certain loan limits and based on personal use. If the property is rented out occasionally, you may need to prorate the deduction. BNB Lending structures your loan with tax efficiency in mind and encourages clients to consult a CPA for help determining what qualifies under IRS rules and how Montana’s no-income-tax policy affects overall deductions.

Are there second home loan programs in Montana?

Montana Board of Housing programs are limited to primary residences, first-time buyers, and income-restricted borrowers. There are no state-sponsored programs for second homes or vacation properties. For these purchases, buyers must work with private lenders. At BNB Lending, we offer flexible second home mortgage options throughout Montana, including Big Sky, Flathead Lake, and Whitefish. We guide clients through zoning, tax, and STR requirements to ensure their mortgage aligns with usage goals and remains fully compliant.

What types of properties qualify for second home loans?

Eligible second homes must be single-unit residences that are livable year-round and primarily used for personal stays. Properties may include detached homes, condos, or townhomes. They must meet lender condition and appraisal standards and cannot be timeshares or investment-designated dwellings. In Montana, zoning or HOA rules may impact your ability to rent or occupy seasonally. BNB Lending assesses your property’s location, use intent, and regulatory context to ensure it qualifies for second home financing without triggering investment loan classification.

Who benefits from choosing a second home loan over an investment loan?

These loans are perfect for self-employed individuals, LLCs, and investors managing multiple properties. If you plan to use your Montana home primarily for personal stays and only rent it occasionally, a second home loan may offer better rates and terms than an investment loan. These loans must be in your personal name—not held by an LLC. BNB Lending structures Montana second home loans to provide flexibility while keeping your financing compliant with lender and zoning guidelines.

Thinking beyond Montana? Explore short-term rental loans and second home opportunities in nearby states like Idaho or Wyoming to expand your portfolio.