FHA Loans in Montana
The FHA loan limit in Montana is $472,030 for a single-family home. FHA loans require just 3.5% down payment and accept credit scores as low as 580.
Montana's FHA limits at the baseline have become increasingly tight in the western part of the state, where communities like Bozeman, Missoula, and Whitefish have seen median prices exceed the limit. Some Montana counties may qualify for slightly elevated limits. FHA remains very practical in eastern Montana, Helena, Great Falls, and Billings where prices are more moderate. Montana's rural properties often struggle to meet FHA's minimum property standards due to well/septic requirements, access road conditions, and remote locations that complicate the appraisal process.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: HUD, Zillow
FHA Loan Limit
$472,030
Min Down Payment
$16,521
3.5%
Est. Monthly Payment
$3,442
PITI + MIP
Min Credit Score
580
for 3.5% down
Monthly Payment Breakdown at FHA Limit
| Home Price | $472,030 |
| Down Payment (3.5%) | $16,521 |
| Loan Amount | $455,509 |
| Monthly Costs | |
| Principal & Interest (6.5%) | $2,879 |
| FHA Mortgage Insurance (MIP) | $209 |
| Property Tax | $236 |
| Homeowners Insurance | $118 |
| Total Monthly Payment | $3,442 |
* Estimated at 6.5% interest rate, 30-year fixed. MIP at 0.55% annual. Property tax at Montana's average rate of 0.6%. Includes upfront MIP of 1.75% rolled into loan.
FHA Loan Requirements
Credit Score
580+ for 3.5% down payment. 500-579 requires 10% down.
Down Payment
Minimum 3.5% of purchase price. Can be a gift from family.
Debt-to-Income
Maximum 43% DTI ratio (up to 50% with compensating factors).
Property Requirements
Must be primary residence. FHA appraisal required (stricter than conventional).
Employment
2 years of steady employment history. Self-employed need 2 years of tax returns.
Mortgage Insurance
1.75% upfront MIP + 0.55% annual MIP. Required for life of loan (unless refinanced).
FHA vs Conventional in Montana
| Feature | FHA | Conventional |
|---|---|---|
| Min Down Payment | 3.5% | 3-5% |
| Min Credit Score | 580 | 620 |
| Mortgage Insurance | Life of loan | Until 20% equity |
| Loan Limit (Montana) | $472,030 | $766,550+ |
| Best For | Lower credit, small savings | Good credit, 20%+ down |
