Did you know that Montana is home to the world’s smallest river? The Roe River flows only 201 feet. Montana is full of unique features, making it an appealing option for foreign nationals looking to invest in U.S. rental properties. While having the financial means to purchase a property is a great advantage, securing approval for the investment can be a rewarding challenge that leads to valuable opportunities.
In this guide, we’ll walk you through everything you need to know about investing in Montana’s real estate market, including navigating the financing process to turn your investment goals into reality.
We are providing the following discussion to you for informational purposes only. All investments, including real estate, involve risk, and we encourage you to invest carefully. The information in this article is not intended to replace or serve as a substitute for any legal, real estate, tax, or other professional advice or service. You should consult with a professional in the respective legal, tax, accounting, real estate, or other professional area before making any decisions or entering into any contracts relating to a rental property.
If you’re interested in investing in Montana, you can take advantage of debt-service coverage ratio (DSCR) loans–even as a foreign national.
What is a DSCR loan?
DSCR loans focus on a property's rental income instead of the borrower's personal finances. This makes them a useful option for investors who don’t have U.S. income or credit history. Unlike traditional home loans, DSCR loans fall under the non-qualified mortgage (non-QM) category. They are especially popular among international investors who want to buy real estate in the U.S. without relocating.
If you’re a non-U.S. resident looking to invest in Montana rental properties, DSCR loans offer several advantages:
Understanding what lenders look for in a DSCR loan application can help simplify the process and improve your chances of approval. Here’s what you need to know:
Most lenders: U.S. lenders prefer income earned within the country because it's easier to verify. Foreign income requires extra paperwork, such as translated bank statements and proof of salary. Even with full documentation, approval can be difficult due to financial system differences.
Waltz: We recognize that income sources vary. Whether your earnings come from the U.S. or abroad, we accept different forms of proof, including foreign bank statements, employer pay slips, and rental income reports. We also factor in your property’s rental potential for a well-rounded review.
Most lenders: Foreign investors are often required to put down 30-50% of the property’s value upfront. Some lenders also require extra cash reserves, increasing the initial cost.
Waltz: Our terms are more flexible, and qualified borrowers may secure a loan with as little as 25% down. Reserve requirements also depend on your financial background and the property’s expected rental income.
Most lenders: A valid passport and visa are usually required. Many lenders also require investors to establish a U.S.-based LLC, which involves filing legal business documents.
Waltz: We keep the process straightforward. A passport is all that’s needed for identification. If an LLC is required, our Investor Toolkit provides easy-to-follow steps for setting one up and obtaining an Employer Identification Number (EIN).
Most lenders: U.S. lenders rely on domestic credit scores, which can make financing difficult for foreign investors who don’t have one—even if they have strong credit in their home country.
Waltz: Instead of requiring a U.S. credit score, we take a wider view. We evaluate your home country’s credit history along with other financial details to ensure a fair and thorough assessment.
Find out how international investors have benefited from working with Waltz.
Montana offers a variety of real estate investment opportunities, with property types suited to different strategies. The best choice depends on your financial goals and lender requirements. Here are some common property types you might consider:
Montana’s real estate market offers several advantages for investors looking to generate rental income:
Montana offers several promising cities for real estate investors, each presenting unique opportunities:
As Montana’s largest city, with a population of over 120,000, Billings has a diverse economy driven by healthcare, energy, and agriculture. Home to three oil refineries, it’s also the oil refinery capital of the northern Rocky Mountains. This economic strength creates a steady demand for rental properties, supported by the city’s consistent growth.
Home to Montana State University and its 17,000+ students, Bozeman has experienced rapid growth. Bozeman is home to several tech companies and startups, including the well-established onX and Figure, a mapping and FinTech company, respectively. Bozeman is also a little more than an hour’s drive from Yellowstone National Park, and many Yellowstone tourists choose to stay in Bozeman to take advantage of the town’s thriving arts, culinary, and cultural scene. With high demand for student housing, short-term rentals, and regular rentals, Bozeman is a great opportunity for real estate investors.
Missoula is known for its natural beauty, relaxed atmosphere, and strong rental market. The University of Montana’s enrollment has grown by 6% to around 10,000 students, its highest in 15 years, keeping demand for housing steady. The city also has two large hospital systems, supporting a strong local economy. Beyond its job market, Missoula’s thriving arts scene, unique shopping, and outdoor recreation attract both residents and visitors, making it a great location for traditional and short-term rentals. With 53% of households renting and the third-highest living costs in Montana (outside of resort towns), Missoula presents an attractive opportunity for investors.
As Montana’s third-largest city, with around 60,000 residents, Great Falls has a steady population and an affordable housing market. Malmstrom Air Force Base, the largest in the state, brings around 4,000 personnel to the area, creating consistent demand for rentals. Once a major railroad hub, Great Falls is now home to key employers like Blue Cross Blue Shield and Pacific Steel & Recycling, further strengthening the local economy. The city also has historical significance, as it was visited by famous explorers Lewis and Clark in the early 1800s. This has inspired many cultural attractions around the area.
Montana's real estate market presents unique factors that investors should evaluate before purchasing rental properties. Here are three key considerations:
Refinancing your Montana investment property involves replacing your existing mortgage with a new one. Whether you're looking to secure a lower interest rate or free up funds for future investments, the process typically includes:
This option allows you to modify your mortgage terms, such as securing a lower interest rate or adjusting the loan structure to better align with your financial strategy. While reducing monthly payments can improve cash flow, the total repayment amount may increase depending on the new terms.
A cash-out refinance lets investors tap into their property’s equity by borrowing more than the remaining loan balance. The extra funds can be used for property upgrades, purchasing additional real estate, or pursuing other investment opportunities, so you can expand your portfolio without acquiring another loan.
Montana offers a range of real estate investment opportunities, from growing rental markets to properties in scenic locations. At Waltz, we make securing a DSCR loan straightforward. Here’s how the process works:
1. Find a profitable investment
Decide on your investment strategy. Whether you’re considering a long-term rental or a fix-and-flip property, choose one that aligns with your budget and financial goals.
2. Gather essential documents
Prepare necessary paperwork, including a valid passport, proof of income (such as bank statements or pay stubs), and details about the property you want to purchase. Having these documents ready can speed up the approval process.
3. Select a lender experienced with foreign nationals
Work with a lender who understands the challenges international buyers face. Waltz specializes in helping foreign nationals navigate U.S. mortgage requirements with tailored lending solutions.
4. Set up an LLC and U.S. bank account2
Many investment properties require forming a U.S.-based LLC and opening a local bank account. This process is straightforward, and Waltz provides guidance on setting up an LLC and obtaining an Employer Identification Number (EIN).
5. Submit your loan application
Once your documents are in order, submit your DSCR loan application. Double-check for accuracy to avoid unnecessary delays.
6. Perform due diligence
Before finalizing the deal, inspect the property, confirm its market value, and review the loan terms carefully. It’s very important to ensure this investment property meets your expectations.
7. Complete the purchase process
Once all conditions are met, sign the closing documents, transfer the required funds, and officially secure your Montana investment property. Congratulations – you officially own property in Montana!
