Montana VA Loan Requirements 2026
How VA entitlement works in Montana and why full entitlement carries no county loan cap, the 2026 funding fee tables and exemptions, Malmstrom Air Force Base, and the Montana Board of Housing’s Veterans’ Home Loan Program.
VA Loan Eligibility in Montana
VA eligibility is federal and does not vary by state. Your Certificate of Eligibility (COE) shows the entitlement your lender will use.
| Category | Minimum Service |
|---|---|
| Active-duty service members | At least 90 continuous days |
| Veterans | Depends on when you served |
| National Guard | 90 days of non-training Title 10 active duty, or 6 creditable years |
| Reserve | 90 days of non-training active duty, or 6 creditable years in the Selected Reserve |
| Surviving spouses | Receiving or eligible for certain DIC, or spouse of a service member missing in action or held as a prisoner of war |
Full service rules, discharge exceptions and COE requests are on the VA home loan eligibility page.
Montana Military Installations
Malmstrom Air Force Base, east of Great Falls, is home to the 341st Missile Wing and is one of three U.S. Air Force bases that maintain and operate the Minuteman III intercontinental ballistic missile. Active-duty members qualify for VA loans under the service rules above.
| Installation | Unit | Notes |
|---|---|---|
| Malmstrom Air Force Base | 341st Missile Wing | About 3,371 active-duty military and 525 Department of the Air Force civilians; a 13,800-square-mile missile complex |
Source: Malmstrom Air Force Base.
How VA Entitlement Works in Montana
A VA guaranty lets most eligible buyers purchase with no down payment and no private mortgage insurance. With full entitlement, VA’s bonus entitlement usually covers 25% of the amount a lender is willing to lend, so the county limit does not cap your loan — your lender’s approval does. If part of your entitlement is already in use, your remaining entitlement is based on the county loan limit where you buy.
| Entitlement Status | Does a County Limit Apply? | Down Payment |
|---|---|---|
| Full entitlement | No — the lender’s approval sets the amount | Usually none |
| Partial entitlement | Yes — remaining entitlement is based on the county loan limit | May be required above what your remaining entitlement covers |
| County Group | Conforming Limit (partial entitlement reference) |
|---|---|
| All 56 Montana counties | $832,750 |
VA says its home loan limits are the same as FHFA’s conforming loan limits and that you use the one-unit limit even for a multi-unit property. See VA’s home loan entitlement and limits page. The maximum VA loan on a property is the lower of the appraised value or the purchase price.
Montana VA Loan Requirements
| Requirement | Standard | Notes |
|---|---|---|
| Down payment | Usually none with full entitlement | The lender determines the loan amount |
| Credit score | 580–620 (lender overlay) | VA does not require a minimum score |
| Seller concessions | Up to 4% of reasonable value | Seller credits for closing costs are not limited |
| Funding fee | Varies — see below | Waived for exempt borrowers |
| Mortgage insurance | None | No private or monthly mortgage insurance |
2026 VA Funding Fee
The funding fee is a one-time charge on a VA-backed loan. It falls as your down payment rises.
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
| Refinance Type | First Use | Subsequent Use |
|---|---|---|
| Cash-out refinance | 2.15% | 3.3% |
| Interest Rate Reduction Refinance Loan (IRRRL) | 0.5% | 0.5% |
Who is exempt
- Veterans receiving VA compensation for a service-connected disability
- Veterans eligible for that compensation but receiving retirement or active-duty pay instead
- Surviving spouses receiving Dependency and Indemnity Compensation (DIC)
- Service members with a proposed or memorandum rating before closing based on a pre-discharge claim
- Active-duty members who provide evidence of a Purple Heart on or before closing
Veterans with VA disability ratings, surviving spouses receiving DIC, and active-duty Purple Heart recipients are exempt from the funding fee. Cash-out refinance funding fees are 2.15% for first use and 3.30% for subsequent use; IRRRLs carry a 0.5% fee. Confirm current rates at the VA’s official funding fee page.
Pairing a VA Loan with the Montana Board of Housing
A VA loan and the Montana Board of Housing’s programs are not mutually exclusive. MBOH requires buyers to first qualify for an FHA, VA, RD or HUD-184 first mortgage, its bond programs waive the three-year first-time rule for veterans, and it administers a separate home loan program for Montana veterans.
| MBOH Program | How It Works with VA |
|---|---|
| Regular Bond Program | VA is an eligible first mortgage; the three-year no-ownership rule does not apply to veterans; county income and purchase price limits apply |
| Montana Veterans’ Home Loan Program | For Montana residents serving or who served in the federal armed services or the Montana National Guard; rate 1% lower than market; no income or purchase price limits; loan amount limit $538,036; must never have owned a principal residence |
| Down payment assistance | Up to 5% of the price, max $15,000, as a second mortgage with an MBOH first mortgage |
Because a VA loan usually requires no down payment with full entitlement, MBOH assistance is most useful for closing costs. Ask a participating lender about other limitations on the Veterans’ Home Loan Program, and check current terms with the Montana Board of Housing.
