4 Best Construction Loans in Montana


Construction loans in Montana are available in a wide variety of options depending on what you’re looking to achieve with your construction project.

There are numerous lenders available when seeking a construction loan, but the benefits and downsides may not be apparent to people who aren’t experts in the field. Finding the best way to finance your home construction project can be a challenging process. 

Where do you start? What type of loan should you get? How do you secure the best loan for the project? These questions and more factor into the process of finding a construction loan. But with the average home building price in Montana of $100 to $140 per square foot according to real estate experts, it’s hard to not consider constructing a new home if that’s been something you’ve been thinking about. 

Here are some of the most common construction loan programs found in Montana to help you figure out which is suitable for your next construction project.

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How to choose the best construction loan in Montana

Before you begin your construction project, you should start planning how you will finance it. You probably know that you will need a loan to cover the costs, but you may not know what type of financing is best for your situation. 

Many types of construction loans with competitive rates are available to help you fund your construction project. The first step in choosing the best construction loan is assessing your situation. 

  • What is your current financial situation? 
  • What is your general credit history?
  • Will it be for a primary residence or investment property?
  • What is the timeline for your project? 

With these questions in mind, you can evaluate your options and identify what construction loan is best for you to start building your dream home.

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4 Best construction loan lenders in Montana

If you’re ready to review the top construction mortgage lenders in Montana, here are the best options we’ve found through our research.

1. Whitefish Credit Union

Whitefish Credit Union is the largest credit union in Montana with over $2 billion in assets and eight locations including Kalispell, Whitefish and Eureka. If you’re looking for a credit union to finance your construction project, this is a good financial institution to consider as they offer a construction loan product.

We wanted to know more about Whitefish Credit Union and its construction loan terms, so we contacted them to get additional details:

  • Loans available to purchase land and finance construction.
  • Loan officers are experts in Northwest Montana real estate and construction matters and understand the building process.
  • Fixed rate loans available
  • Construction timelines to fit your project.

When you’re ready to connect with a loan officer, use our form to quickly match with construction loan programs based on your specific circumstances.

2. Bank of Bozeman

Located in Bozeman, Montana, the Bank of Bozeman is a local community bank serving the local area. They have a construction loan product, although the details are sparse.

We asked Bank of Bozeman to provide further details but this is all they told us:

  • Construction to permanent refinancing is available
  • They offer flexible draws to make it easier to work with your contractor
  • Land loan funding available
  • You’ll have to contact them for specific requirements, fees and conditions.

When you’re ready to connect with a loan officer, use our form to quickly match with construction loan programs based on your specific circumstances.

3. Wintrust Mortgage

Wintrust Mortgage is one of the top 20 bank-owned retail mortgage originators in the country that originates in excess of $4 billion in loans annually in all 50 states. 

Recently we asked Wintrust Mortgage to provide us with details on their construction loan options and this is what they said:

  • One-Time Closing. Only pay the closing cost once
  • Lock in your rate upfront and avoid interest rate risk
  • FHA (first time homebuyers), VA, and Conventional loan rates
  • 0% Down payment up to $822,375 (VA ONLY)
  • 3.5% Down up to FHA County Limits ($356,362-822,375) 
  • 10% Down on Second homes and investment properties
  • FICO 680+
  • Loans must include building no Lot/Land Loans 
  • Maximum of 10-acres per build site
  • Stick Built and Modular Homes ONLY
  • NO log homes or metal homes (barndominium)
  • Tear Down and Rebuilds do qualify
  • No self-build or owner builder construction loans.
  • The builder must be approved. Does Not allow ADUs (Accessory Dwelling Unit – Granny Flat/Garage Conversions/Basement)
  • Now lending in all 50 States

When you’re ready to connect with a loan officer, use our form to quickly match with construction loan programs based on your specific circumstances.

4. Black Diamond Mortgage Corporation

Black Diamond Mortgage Corporation is a non-bank lender in Montana that specializes in mortgage products, including home loans and construction loans. Their team of brokers can help you find a construction loan in Montana that suits your needs.

We reached out to Black Diamond Mortgage Corporation to learn more about their construction loan and this is what they told us:

  • VA, or FHA-Backed Construction Loan with no extra money down, and no extra credit score or income requirements
  • 1 Time Close Construction Loan Program.
  • You buy the lot, pick your favorite builder and we help you choose the best loan program for your needs.

When you’re ready to connect with a loan officer, use our form to quickly match with construction loan programs based on your specific circumstances.

How do you qualify you for a construction loan in Montana

Whether you qualify for a construction loan will depend on the lender and the type of loan you want. However, in general, construction loan lenders will look at the following factors to determine whether you qualify for a construction loan and the loan amount you are eligible for.

  • Applicants must be at least 18 years old with a valid social security number. 
  • Borrowers must be employed full-time with a W-2.
  • Applicants must earn at least two times the amount of the loan. 
  • Applicants must have a valid checking or savings account and a verifiable source of income. 
  • Construction lenders may also require you to have some sort of collateral if you don’t have sufficient income. The type of collateral needed may vary from lender to lender, but it is typically real estate.

If you’re looking to explore construction loans in other states, check out our national guide to construction loans and get started exploring all 50 states.

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Joshua Holt

Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.

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