How to buy a home in Montana

Montana embodies the nickname “Big Sky Country” with its open spaces, dramatic mountain ranges, clear rivers, and welcoming communities that tend to be resilient. Home prices have climbed in many parts of the state, especially in faster-growing and scenic areas, but buying a house in Montana can still make sense if you’re prioritizing outdoor access, more space, and a slower lifestyle.

Whether you already call Montana home or you’re moving for work, family, or a new adventure, buying a home in the state comes with its own set of considerations. We’ll outline what to know so you can start your home search in Montana with confidence.

Montana’s housing market: At a glance

Understanding the housing market in Montana

Before you start house hunting, it’s a good idea to understand Montana’s housing market and how home prices can vary throughout the state.

The median home price is $545,900

In Montana, home prices have increased 5.5% compared to October 2024, according to Redfin. However, the median home sale price is higher than the national average, $545,900 compared to $439,917.

You’ll find some areas that are both more and less affordable than Montana’s state average. Some major cities have additional housing inventory and might be more affordable than popular resort towns with fewer and more expensive homes for sale.

• In Billings, the median home price is $352,134.
• In Whitefish, the median home price is $1.49M.

Neighborhood, unique features, home size, and nearby amenities also influence the home prices you’ll find in different areas. You can use the Rocket Mortgage home affordability calculator to help compare prices to see which cities may fit your budget best. 

Market trends and inventory 

Montana has seen a 4.3% increase in homes for sale compared to last year. Each city differs slightly, so working with an experienced Montana real estate agent can help you navigate the market. 

Spring and summer are peak shopping seasons

During the spring and summer months in Montana, buyer demand is higher and more homes tend to hit the market. Shopping for a home in the early fall through winter may mean fewer competing buyers and the potential for better prices, though inventory could be more limited. At the end of the day, best time to buy a home is when you’re financially and emotionally ready. 

How to buy a house in Montana

Now that you know about Montana’s housing market, we’ll guide you through the steps of buying a house in the state.

Step 1: Check your credit and set a budget

Before beginning your home search, examine your finances, such as your credit score, DTI, and potential budget. You can use the Rocket Mortgage mortgage calculator to see what you could afford each month and how much you should save for your down payment and closing costs.

• Check your credit score
• Find out your debt-to-income ratio
• Save for a down payment
• Plan for closing costs and additional fees
• Finalize your budget

Step 2: Decide on the type of financing you want

There are various home loans available if you’re buying a home in Montana.

• Conforming conventional loans. These loans are offered by private lenders, who typically require a minimum 3% down payment. If your down payment is lower than 20%, you’ll have to pay private mortgage insurance (PMI).
• Jumbo loans. These conventional loans exceed conforming loan limits. They typically require a higher down payment, credit score, and additional cash reserves. 
• FHA loans. This is a government-backed loan through the Federal Housing Administration and offers lower down payments depending on your credit score. 
• VA loans. Backed by the Department of Veterans Affairs, these loans are for qualifying service members and surviving spouses and require no down payment.
• USDA loans. Backed by the U.S. Department of Agriculture, these loans are for home buyers in qualifying rural areas, with no down payment requirement. The USDA releases an updated map each year showing which areas are eligible. 

Step 3: Apply for preapproval

A mortgage preapproval gives you a clear idea of how much you can borrow when buying a home in Montana. Getting a preapproval early in your search can help you stand out, especially in competitive areas.

During the preapproval process, lenders review your credit score, income, and assets to determine which loans you may qualify for, your potential interest rate in Montana, and the loan terms. The process typically takes just a few days.

Step 4: Find a real estate agent in Montana

Choosing a local real estate agent in Montana makes the homebuying process easier, as they have a deep understanding of the area. You can find a great real estate agent through your family and friends or through sites like Redfin.com. 

In Montana, dual agency is allowed if both parties have written consent. Dual agency allows one agent to represent both buyers and sellers in the transaction. Be sure to ask your agent before signing a buyer's agent agreement. 

Step 5: Start house hunting

After finding a few cities that fit your budget and goals, it’s time to look at homes for sale. Work with your real estate agent to look at houses for sale on the MLS and sites like Redfin to narrow down the homes you want to see in person. 

Key factors to consider:

• Proximity of the neighborhood to schools, jobs, and amenities
• Public transit, major roads, and highways
• HOA fees and potential costs
• Costs of property taxes in the city

Step 6: Make an offer and negotiate

Your real estate agent will guide you through making an offer on a house in Montana. You’ll work together to decide how much to offer, which contingencies to include, and how much to put down as an earnest money deposit. This deposit shows the seller you’re committed to purchasing the home and is typically 1% – 3% of the purchase price, later applied toward your down payment.

Step 7: Begin the closing process

Now that your offer is accepted, you’ll:

• Submit your earnest money
• Officially apply for a mortgage
• Read through the closing documents
• Schedule the appraisal and inspection
• Prepare for closing day
• Have a final walkthrough

In Montana, closing costs are typically 3% – 6% of the home’s purchase price. Closing costs can cover loan origination fees, home inspection costs, mortgage points, insurance, property taxes, and escrow fees.  

FAQ about home buying in Montana

Here are some of the top frequently asked questions about buying a home in Montana.

How much are property taxes in Montana?

The effective property tax for Montana is 0.75%, but local property taxes might differ.

Do I need a real estate agent to buy a home in Montana?

A great real estate agent can help you find your dream home and navigate the home buying process, but you technically don’t need one to buy a house in Montana.  

How long does it take to close on a house in Montana?

In Montana, it typically takes 30 to 60 days to close on a home. Loan approval and home could affect this timeline. 

Are there any specific factors that could affect the home buying process in Montana?

Some regions in Montana have higher wildfire or flooding risks, so your lender could require you to carry additional insurance policies. 

The bottom line: There’s a home in Montana waiting for you

Montana’s wide open spaces, outdoor recreation, and mix of small towns and mid-sized cities make it an attractive place to live. By working with a trusted real estate agent and preparing your finances, you can feel confident buying a home in Montana. 

If you’re ready to buy a home in the Big Sky Country, start the mortgage approval process with Rocket Mortgage® for a personalized plan that fits your financial goals.

Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

Rocket Mortgage is not acting on behalf of FHA or HUD.

The 3% down payment option is only available on certain conventional loan products and is not available in all states. Additional terms and conditions may apply.

This article is for informational purposes only and is not intended to provide financial, investment, or tax advice. You should consult a qualified financial or tax professional before making decisions regarding your retirement funds or mortgage.