Montana FHA Loan Requirements 2026
2026 FHA loan limits for all 56 Montana counties, including the higher Billings, Bozeman, Kalispell and Missoula limits, HUD’s credit and minimum investment rules, how FHA mortgage insurance works, and how FHA pairs with the Montana Board of Housing.
Montana FHA Loan Limits by County (2026)
FHA sets its limits by county and by the number of units in the property. In Montana, 47 of 56 counties sit at the CY2026 national floor, including the Great Falls, Helena and Butte-Silver Bow metro areas, and nine are set higher.
| County | One Unit | Two Units | Three Units | Four Units |
|---|---|---|---|---|
| Carbon, Stillwater, Yellowstone (Billings metro) | $754,400 | $965,750 | $1,167,400 | $1,450,800 |
| Gallatin (Bozeman metro) | $718,750 | $920,150 | $1,112,250 | $1,382,250 |
| Flathead (Kalispell) | $615,250 | $787,650 | $952,050 | $1,183,200 |
| Missoula, Mineral (Missoula metro) | $598,000 | $765,550 | $925,350 | $1,150,000 |
| Park | $563,500 | $721,400 | $872,000 | $1,083,650 |
| Ravalli | $560,050 | $716,950 | $866,650 | $1,077,050 |
| 47 other counties (national floor) | $541,287 | $693,050 | $837,700 | $1,041,125 |
Confirm any county before relying on it at the HUD FHA Mortgage Limits lookup, selecting Limit Type “FHA Forward” and Limit Year CY2026.
Montana FHA Loan Requirements
FHA rules are federal, so they do not change between Montana and any other state. What changes is the loan limit and the price of the homes you are applying them to.
| Requirement | Standard | Notes |
|---|---|---|
| Minimum required investment | 3.5% of the adjusted value | Required for FHA to insure the maximum mortgage amount |
| Credit score 580 or above | Eligible for maximum financing | Lenders may apply a higher overlay |
| Credit score 500–579 | Maximum 90% loan-to-value | Effectively 10% down |
| Credit score below 500 | Not eligible | HUD minimum decision credit score |
| Mortgage insurance | Required | Both upfront and annual — see below |
| Loan limit | $541,287 for one unit in 47 counties | Up to $754,400 in the Billings metro |
Sources: HUD on the minimum required investment and on minimum decision credit scores.
FHA Mortgage Insurance Premiums (MIP)
Every FHA loan carries two mortgage insurance charges: a one-time upfront premium and an annual premium paid monthly. These are national figures set by HUD, not Montana figures.
| Premium | Rate | How It Is Paid |
|---|---|---|
| Upfront (UFMIP) | 1.75% of the base loan amount | One-time premium |
| Annual, base loan up to $726,200, LTV above 95% | 55 basis points | Monthly, for the life of the loan |
| Annual, base loan up to $726,200, LTV above 90% up to 95% | 50 basis points | Monthly, for the life of the loan |
| Annual, base loan up to $726,200, LTV 90% or below | 50 basis points | Monthly, for 11 years |
| Annual, base loan above $726,200, LTV above 95% | 75 basis points | Monthly, for the life of the loan |
| Annual, base loan above $726,200, LTV above 90% up to 95% | 70 basis points | Monthly, for the life of the loan |
| Annual, base loan above $726,200, LTV 90% or below | 70 basis points | Monthly, for 11 years |
These rates apply to loans with a term longer than 15 years. Montana’s one-unit FHA limits are below $726,200 everywhere except the Billings metro, where the limit is $754,400; two-unit limits exceed it in seven counties, and three- and four-unit limits exceed it everywhere. Source: HUD Mortgagee Letter 2023-05.
FHA vs. Conventional in Montana
With Montana’s conforming limit at $832,750 in every county, conventional financing reaches above FHA’s one-unit limit everywhere in the state.
| Factor | FHA | Conventional |
|---|---|---|
| Minimum down payment | 3.5% | 3%–20% (practical range) |
| Practical credit threshold | 580 | 620 |
| Mortgage insurance | Upfront plus annual; annual for the life of the loan above 90% LTV | Private mortgage insurance, which can be removed as equity builds |
| 2026 Montana limit | $541,287 to $754,400 by county | $832,750 in every county |
| Best suited to | Thinner credit, limited savings | Stronger credit, or avoiding permanent mortgage insurance |
See our guide on how to remove PMI for how private mortgage insurance ends on a conventional loan.
Combining FHA with the Montana Board of Housing
An FHA loan and the Montana Board of Housing’s programs are not alternatives. To be eligible for MBOH programs, a buyer must first qualify for an FHA, VA, RD or HUD-184 first mortgage, so FHA is one of the standard routes into an MBOH loan.
| MBOH Program | Works With FHA | What It Adds |
|---|---|---|
| Regular Bond Program | Yes — FHA is an eligible first mortgage | 30-year, low-interest loan within county income and purchase price limits |
| Bond Advantage DPA | Yes, with an MBOH first mortgage | Up to 5% of the price, max $15,000, for down payment and closing costs |
| MBOH Plus 0% Deferred DPA | Yes, with an MBOH first mortgage | Up to 5% of the price, max $15,000, with no monthly payments |
Pairing FHA with MBOH means meeting both sets of rules: FHA’s minimum investment and credit thresholds, and MBOH’s first-time buyer, income and purchase price limits. The 80% Combined Program is MBOH’s alternative for buyers who want to avoid FHA mortgage insurance. Check current terms with the Montana Board of Housing.
