If you’re interested in buying a home in Montana, you’ll be in good company. Though there are just 515,000 housing units in the state, the homeownership rate of 68% is above the national average, according to the U.S. Census Bureau’s 2018 American Community Survey.
Montana’s median housing value is $249,200, which is just above the national median of $229,700. Home values range widely by region, however, with the lowest counties reporting a median of $89,800, and the highest median going up to $330,400.
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AmeriSave Mortgage Corp. is an online lender that has been in business since 2002. It was one of the first to offer an offsite digital mortgage experience for customers. The company says it has financed more than 664,000 borrowers since it began operating. With headquarters in Atlanta, AmeriSave services loans in 49 states and Washington, D.C.
Pentagon Federal Credit Union, widely known as PenFed, offers borrowers access to many types of mortgages: conventional, adjustable rate, jumbo and Department of Veterans Affairs, plus refinancing loans and home equity lines of credit. The financial institution, which serves 2.8 million members, was established in 1935 and is based in McLean, Virginia.
PNC Bank is one of the largest banks in the United States, serving more than 9 million customers in all 50 states. A full-service mortgage lender, PNC offers most mortgage loan product types.
Bank of America serves roughly 67 million customers in all 50 states. The lender offers conventional, Federal Housing Administration, Department of Veterans Affairs and jumbo loans as well as home equity lines of credit and mortgage refinancing.
Guaranteed Rate, founded in 2000 and based in Chicago, offers mortgage options including conventional loans, FHA loans, jumbo loans and interest-only loans to customers in all 50 states and Washington, D.C. Borrowers can take advantage of specialized loan products and Guaranteed Rate’s online application, documentation and loan payment options.
Wells Fargo offers a variety of mortgage products nationwide. Options include conventional, government-backed and jumbo loans. You can also refinance an existing mortgage with Wells Fargo.
SoFi is an online lender founded in 2011 and headquartered in San Francisco that offers fixed-rate mortgages. Refinance, jumbo and home equity loans are also available.
Best for customer service
Rocket Mortgage, the largest mortgage lender in the nation, was founded in 1985. The Detroit-based company is best known for its fully digital experience of buying or refinancing a home. Rocket Mortgage changed its name from Quicken Loans in the summer of 2021.
Chase, one of the world’s largest banks, was founded in 1799 in New York and offers fixed-rate, refinance and other mortgage loans.
Best for online application and approval
Homefinity launched in 2018 as the online lending division of Fairway Independent Mortgage. It offers a variety of mortgage products, including conventional mortgages, FHA and VA mortgages, and mortgage refinancing.
The average mortgage rate in Montana is currently 9.75% for the 30-year fixed loan term.
Here are the interest rates offered to Montana residents looking to buy or refinance a home as of 03/07/2023:
- 30-year fixed purchase: 9.75%
- 15-year fixed refi: 6.51%
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The 30-year mortgage rate continued to climb past 7% this week, reaching the highest point in four months. Mortgage rates rose further for most other long-term home loan products, including VA loans, FHA loans and jumbo loans.
Mortgage interest rates are twice as high as they were at the beginning of 2022, which continues to have a tangible impact on mortgage affordability and consumer housing sentiment. Mortgage rates are widely expected to fall throughout the course of 2023, but this recent surge comes just ahead of the busy spring homebuying season. Here are the current mortgage rates, without discount points unless otherwise noted, as of March 9:
- 30-year fixed: 7.16% (up from 7.07% a week ago).
- 20-year fixed: 6.97% (down from 7.02% a week ago).
- 15-year fixed: 6.29% (equivalent to 6.29% a week ago).
- 10-year fixed: 6.32% (down from 6.43% a week ago).
- 5/1 ARM: 5.8% (up from 5.68% a week ago).
- 7/1 ARM: 5.93% (up from 5.84% a week ago).
- 10/1 ARM: 6.18% (up from 6.09% a week ago).
- 30-year jumbo loans: 7.26% (up from 7.12% a week ago).
- 30-year FHA loans: 6.27% with 0.05 point (up from 6.2% a week ago).
- VA purchase loans: 6.48% with 0.05 point (up from 6.32% a week ago).
Montana homebuyers can get help with down payments and closing costs from these Montana Housing programs.
- Available to: First-time homebuyers who first qualify for a Federal Housing Administration, Veterans Affairs, United States Department of Agriculture Rural Development or Section 184 Indian Home Loan Guarantee Program first mortgage loan.
- Income limits: Vary by county (see income limits).
- First-time homebuyers only?: Yes.
- Benefits: A lower interest rate.
- Down payment and closing cost assistance: Programs are available and may be combined.
- Available to: Borrowers who are eligible for a Regular Bond Program loan with a minimum credit score of 620; completion of a buyer education program is also required.
- Income limits: Vary by county (see income limits).
- First-time homebuyers only?: Yes.
- Down payment and closing cost assistance: Available for up to 5% of the sales price, maximum $10,000, as a 15-year amortizing loan with low monthly payments and the same fixed rate as the main loan. Borrowers must contribute at least $1,000 of their own funds.
- Available to: Borrowers with a minimum credit score of 620 and maximum debt-to-income of 43%; completion of a buyer education program is also required.
- Income limits: $55,000
- First-time homebuyers only?: Yes.
- Down payment and closing cost assistance: Available for up to 5% of the sales price, maximum $6,500, as a 0% second loan with no monthly payments. Borrowers must contribute at least $1,000 of their own funds.
- Available to: Homebuyers who are eligible for Montana Housing financing.
- Income limits: Vary by county (see income limits).
- First-time homebuyers only?: No.
- Benefits: This is a 30-year mortgage loan at 80% loan-to-value that is combined with a second loan at 20% LTV offered by a partnering nonprofit.
- Available to: Montana residents serving or who have served in the military through the federal armed services or the Montana National Guard.
- Income limits: No income, purchase price or asset limits apply.
- First-time homebuyers only?: No.
- Benefits: Mortgage interest rate is 1% lower than market rate.
- Available to: Homebuyers who meet the same IRS eligibility requirements as the Montana Housing loan programs, but Montana Housing loans are not eligible for MCC.
- Income limits: N/A.
- First-time homebuyers only?: Yes.
- Benefit: A tax credit that reduces the amount of federal income tax paid by a first-time homebuyer. The tax credit is equal to 20% of the mortgage interest (not to exceed $2,000) paid during the tax year.
U.S. News selects the Best Loan Companies by evaluating affordability, borrower eligibility criteria and customer service. Those with the highest overall scores are considered the best lenders.
To calculate each score, we use data about the lender and its loan offerings, giving greater weight to factors that matter most to borrowers. For mortgage lenders, we take into account each company’s customer service ratings, interest rates, loan product availability, minimum down payment, minimum FICO score and online features.
The weight each scoring factor receives is based on a nationwide survey on what borrowers look for in a lender.
To receive a rating, lenders must offer qualifying loans nationwide and have a good reputation within the industry. Read more about our methodology.
To recap, here are the picks:
Best Montana Mortgage Lenders of 2023
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does not include all loan companies or all loan offers available in the marketplace.
