FHA Loans in Montana: Rates, Requirements, and Limits for 2026

FHA loans in Montana can be a fit if you are looking for a lower down payment and more flexible credit requirements.

FHA guidelines are set nationally, but loan limits and lender policies can influence your borrowing options.

FHA Home Loan Rates in Montana for 2026

The rates on this page are a starting point, but your mortgage interest rate in Montana will reflect both market conditions and your personal situation.

It's also worth noting that the interest rate and APR aren't the same. The interest rate affects your monthly principal and interest payment, while the APR includes certain fees.

Here are our current FHA loan rates in Montana. If you want to check out Montana mortgage rates for other types of loans, you can check out our state rates page.

Montana FHA Loan Calculator

FHA loans require a Mortgage Insurance Premium, known as MIP, which allows borrowers to qualify with lower down payments by protecting lenders against losses. That includes an upfront MIP of 1.75% of the base loan amount, which is typically financed into the loan, and an annual premium that is broken down into your monthly payments.

If your FHA loan down payment is less than 10%, MIP lasts for the life of the loan. With a down payment of 10% or more, MIP can be removed after 11 years.

You can estimate a potential monthly FHA mortgage payment with MIP using our calculator. This tool is educational only and not a loan offer. To determine your actual payment, you’ll need to connect with a loan expert.

FHA Loan Requirements for Montana Borrowers

FHA eligibility guidelines are federally defined and apply consistently across all states, including Montana. Lenders evaluate several core factors during underwriting.

Credit Score and Down Payment Guidelines

Borrowers with a credit score of 580 or higher can qualify for the minimum 3.5% down payment. Borrowers with credit scores between 500 and 579 may qualify with a 10% down payment, subject to lender approval.

Down payment gifts from eligible donors are allowed when properly documented, which can help buyers using family assistance.

Debt-to-Income Ratio and Income Verification

Debt-to-income ratio measures how much of your gross monthly income goes toward debt payments. FHA generally prefers a DTI at or below 43%, though higher ratios may be approved in limited cases with strong compensating factors.

Property Eligibility and Occupancy Rules

Eligible properties include single-family homes, FHA-approved condominiums, and two- to four-unit properties if you live in one unit.

You must occupy the home as your primary residence within 60 days of closing.

FHA Loan Limits in Montana for 2026

FHA loan limits cap how much you can borrow using FHA financing and are updated annually to reflect changes in home prices.

For 2026, 1-unit FHA loan limits in Montana range from $541,287 to $754,400, depending on the county or equivalent area, based on HUD data. The national single-family FHA loan floor is $541,287, and the high-cost ceiling is $1,249,125.

You can use our lookup tool to see the 2026 limit for your Montana county or equivalent area. This tool uses data from the U.S. Department of Housing and Urban Development.

2026 Montana FHA Loan Limit Examples

Always verify current limits using HUD’s official FHA loan limits lookup tool before making an offer.

Single-Family and Multi-Unit FHA Loan Limits for 2026

FHA loan limits increase with the number of units, supporting buyers who plan to live in one unit and rent the others.

Two- to four-unit properties are eligible if you occupy one unit as your primary residence.

Frequently Asked Questions

What Is the Typical Down Payment for an FHA Loan in Montana?

Most borrowers with a credit score of 580 or higher need a 3.5% down payment.

How Do FHA Loan Limits Vary Across Montana Counties?

Limits are set by county (or equivalent area) and range from $541,287 to $754,400 for a 1-unit FHA loan in 2026, depending on the location.

What Credit Score Do I Need to Qualify for an FHA Loan?

A score of 580 or higher qualifies for 3.5% down. Borrowers with scores between 500 and 579 may qualify with 10% down.

How Does Mortgage Insurance Affect FHA Loan Payments?

FHA loans include both upfront and annual mortgage insurance, which increases monthly payments but allows easier qualification and lower down payments.

Can FHA Financing Be Used for Multi-Unit Properties in Montana?

Yes. FHA allows financing for two- to four-unit properties in Montana if you occupy one unit as your primary residence. Loan limits increase based on the number of units, with higher maximum amounts available for multi-unit properties.