Montana, known for its breathtaking landscapes and outdoor recreational opportunities, is also a state where HUD housing loans are readily available and beneficial to many residents. An engaging fact about Montana's housing market is that it has seen a significant increase in demand over the past few years, making affordable housing a top priority. HUD housing loans in Montana have been instrumental in addressing this need, providing affordable homeownership opportunities to many families across the state.

State Housing Market Overview

The housing market in Montana has been experiencing a surge in demand, driven by both in-state and out-of-state buyers. This increased demand, coupled with a limited supply of homes, has led to a rise in home prices. According to data from HUD and state housing authorities, the median home price in Montana has seen a significant increase over the past few years. This trend has made affordable housing a critical issue in the state.

Despite these challenges, there have been significant developments in the state's housing sector. Several new housing projects have been initiated, with a focus on providing affordable homes to low and moderate-income families. These projects, funded in part by HUD housing loans, are aimed at addressing the state's housing affordability challenges and ensuring that all Montanans have access to safe and affordable housing.

Economic Landscape and Demographic Trends

Montana's economic landscape is diverse, with key sectors including agriculture, mining, and tourism. According to the latest data from the Bureau of Labor Statistics, these sectors provide employment to a significant portion of the state's population. The presence of these industries has a direct impact on the housing market, as they influence both the demand for and affordability of housing.

Demographic trends in Montana also play a crucial role in shaping the state's housing market. Data from the U.S. Census Bureau shows that Montana's population is aging, with a higher than average percentage of residents aged 65 and above. This demographic shift is leading to an increased demand for senior-friendly housing options. Additionally, Montana is home to several significant educational institutions and healthcare facilities, which attract students and healthcare professionals from across the country, further driving demand for housing.

Today's Interest Rates in Montana

Find today's rates in the table below.

Please note that these are only benchmark index rates — each loan product will have a rate that varies depending on the property, the location, the borrower's financial strength and experience, and several other factors.

Our Experts

When it comes to getting a HUD loan for your multifamily property, there are several amazing options. The names of the loans themselves are not particularly descriptive, however — more alphabet soup than proper name — yet they have major differences in purpose, eligibility, and terms.

Our team connects you with lenders across the U.S. to find the best financing terms for your property, even if that ends up being outside the world of HUD financing. It doesn't matter if you're buying or building, renovating or expanding, shopping your loan to multiple lenders puts you in a strong position to pick the financing terms that meet your needs.

Our experienced team of capital markets advisors will source the very best terms from our unparalleled network of lenders to ensure your property gets the best financing terms available. We offer this service completely free of charge.

Looking for more information about Montana? Read on below. Otherwise, click the button below, and we'll get right back to you with your free multifamily loan quote.

Current HUD Multifamily Loans in Montana

There are a wide range of HUD financing options for multifamily properties in Montana. Keep reading to learn which one could be the most suitable for your property.

HUD 223(f) Loans

A HUD 223(f) loan is an extremely versatile financing option that can be used for the acquisition or refinance of a multifamily property with more than five units. With long, fully amortizing terms, fixed interest rates and high LTVs, these loans can be the ideal financing vehicle to acquire a multifamily property.

HUD 221(d)(4) Loans

The HUD 221(d)(4) loan is the highest-leverage, lowest-cost construction loan available for a multifamily development. Offering terms of up to 43 years at a fixed interest rate, this financing is extremely popular with developers for good reason. During construction, the loan is interest-only (for up to three years), and upon completion the note has a fully amortizing, 40-year term.

HUD 223(a)(7) Loans

Fast isn't what most people might think of when they think of getting a HUD multifamily loan. However, a HUD 223(a)(7) loan offers both speed and simplicity, with fewer reports and documentation needed. At the same time, this program offers loans with lengthy, fully amortizing terms, and low, fixed rates in a non-recourse package.

Note that while a HUD 223(a)(7) loan can be a wonderful option, it is only available for properties with existing HUD multifamily debt.

HUD 241(a) Loans

If you need supplemental financing for your apartment building in Montana, a HUD 241(a) loan could be a great option. These loans are non-recourse and offer financing at a loan-to-cost ratio of 90% for for-profit entities and 95% for nonprofits. You need an existing HUD loan on your apartment building or healthcare property to qualify.

Interest rates are fixed, and the loan's term length typically will match the term of the senior HUD loan on the property, though in many cases this term can be extended up to 40 years.

HUD 232/223(f) Loans

HUD's healthcare property loan, the 232/223(f) loan, is similar to the previously mentioned HUD 223(f) financing option. Useful for purchasing or refinancing healthcare properties (including skilled nursing and assisted living facilities), the loan does have some restrictions in terms of commercial space. However, the benefits of a 35-year, fully amortizing term at a fixed rate is unparalleled in the healthcare sector.

Think a HUD multifamily loan could be right for your property in Montana? Add your details to the form below, and we’ll match you with the best lender — and loan — for your investment strategy.

Multifamily Property Insurance in Montana

This part isn't about loans, but it's just as important to your investment's success: insurance.

Multifamily insurance premiums have shot through the roof over the past few years, as I'm sure you know. Whether you own (or plan to own) a market-rate apartment building or an affordable housing property, this will have a huge impact on your profitability — and, worst case, ability to operate at all.

Janover Insurance Group is dedicated to finding the best insurance solutions for your multifamily property in Montana, regardless of if it's affordable housing or if you're using a HUD loan. Click to get a free insurance quote for your property — no obligation whatsoever.

By City

• Billings