- In Montana, you can borrow up to $647,200 for a conforming mortgage.
- Most Montana counties limit you to borrowing $420,680 for an FHA mortgage, but a select few have higher maximums.
- You may qualify for a VA or USDA mortgage, which don’t have borrowing limits.
- See today’s mortgage and refinance rates in Montana on Insider.
The amount you can borrow for a home in Montana depends on which type of mortgage you get. Two of the most common types of mortgages are conforming and FHA. Both limit how much you can borrow.
Montana conforming and FHA mortgage borrowing limits by county
To get a conforming mortgage — which is what most people think of as a “regular mortgage” — in Montana, you can borrow up to $647,200. This is the limit set by the Federal Housing Finance Agency, and it applies to every county in the state.
Borrowing limits for FHA mortgages are different in some counties. The table below shows how much you can borrow with an FHA mortgage:
For FHA mortgages, borrowing limits are higher in counties where homes are more expensive.
How to determine what type of mortgage is best for you
“When choosing a type of loan, it really comes down to what you are trying to accomplish,” says Andy Taylor, vice president of home and new ventures at Credit Karma. “If you are simply trying to get into a home, and there’s only one loan type that’s going to let you get into that home, then that’s an easy decision.”
If you need to borrow more than an FHA loan allows, then a conforming or jumbo loan is the clear choice.
Conforming and jumbo loans require higher credit scores — around 620 and 700, respectively. If you don’t qualify for either, you’ll probably need an FHA loan, which lets you buy with a credit score as low as 580. FHA loans are a little easier to get overall — you just need a 3.5% down payment, and your debt-to-income ratio can be higher than with other types of mortgages.
Conforming, jumbo, and FHA loans aren’t the only types of mortgages out there, though. You also might be eligible for a VA mortgage, which is for active military members and veterans. Low-to-moderate income buyers in rural areas may qualify for a USDA mortgage.
“A lot of these programs are tailored for people in particular groups, and they do have extra benefits above and beyond that,” says Taylor. “For example, if you’re a veteran, then you really should be looking at VA loans. They just have more favorable terms, generally speaking.”
A major benefit of VA and USDA mortages is that there are no borrowing limits. But they typically come with additional perks, like lower insurance costs and no minimum down payment.