Montana HELOC Rates & Lenders: Your 2026 Guide to Home Equity Lines of Credit

Montana homeowners are sitting on a growing pile of equity. With median home values pushing past $450,000 in many markets — and over $700,000 in hot spots like Bozeman and Whitefish — there's real opportunity to put that equity to work through a [home equity line of credit](/blog/best-heloc-lenders-2026) (HELOC). But rates, lenders, and rules vary, and you need to know what you're getting into before signing anything.

This guide breaks down everything Montana homeowners need to know about HELOCs in 2026: current rates, top lenders, qualification requirements, state-specific regulations, and tax implications.

Montana Housing Market Overview

Montana's housing market has been one of the country's most dynamic stories over the past five years. Remote workers, retirees, and lifestyle buyers have pushed prices sharply higher, especially in western Montana. Here's where things stand in early 2026:

• Median home value (statewide): ~$460,000
• Billings: ~$340,000
• Missoula: ~$520,000
• Bozeman/Gallatin County: ~$715,000
• Kalispell/Flathead County: ~$550,000
• Great Falls: ~$275,000

Home values have stabilized somewhat after the surge years, but appreciation remains positive in most markets. For homeowners who bought before 2022, there's often six figures of tappable equity available.

Montana's population growth — driven largely by in-migration — continues to support housing demand, which keeps equity positions strong for existing homeowners.

Current HELOC Rates in Montana

As of early 2026, HELOC rates in Montana generally fall in the following ranges:

Most HELOCs in Montana are variable-rate products tied to the prime rate. Some lenders offer introductory rates — often 1–2 percentage points below the ongoing rate — for the first 6 to 12 months. A handful of lenders also offer fixed-rate conversion options, which let you lock in a portion of your balance at a set rate during the draw period.

Credit unions in Montana tend to offer the most competitive HELOC rates, often 0.25% to 0.75% below what the big national banks charge.

HELOC Qualification Requirements in Montana

The basics are similar across the country, but here's what Montana lenders typically look for:

• Equity: At least 15–20% equity in your home after accounting for the HELOC. Most lenders cap your combined loan-to-value (CLTV) ratio at 80–85%, though some go to 90%.
• Credit score: 660 minimum for most lenders; 700+ for the best rates. Credit unions may be slightly more flexible.
• [Debt-to-income ratio](/blog/dti-ratio-explained) (DTI): Generally 43% or below, though some lenders allow up to 50% with strong compensating factors.
• Income verification: W-2s, tax returns, pay stubs. Self-employed borrowers need two years of tax returns.
• [Property appraisal](/blog/appraisal-process-explained): Required in most cases. Some lenders use automated valuation models (AVMs) for lower loan amounts, which can save you the $400–$600 appraisal fee.

Montana has a significant number of rural and agricultural properties. If your home is on acreage, sits on a working ranch, or is classified as agricultural, some lenders may have additional requirements or may decline the property type entirely. Local credit unions and community banks are typically more comfortable lending on these properties than national banks.

Best HELOC Lenders in Montana

Local and Regional Lenders

Glacier Bancorp / Glacier Bank Montana's largest locally headquartered banking group, with branches across the state. Competitive HELOC rates, local underwriting, and familiarity with Montana property types including rural acreage. They often run HELOC promotions with reduced closing costs.

Stockman Bank A Montana-based community bank with deep roots in agricultural and rural communities. Particularly strong for borrowers with non-traditional properties or income from farming and ranching. Personalized service and flexible underwriting.

Wheatland Federal Credit Union Serves several Montana communities and offers some of the [lowest HELOC rates](/blog/best-heloc-rates-2026) in the state. Membership is easy to obtain. Low or no closing costs on many HELOC products.

Opportunity Bank of Montana A community bank with a strong presence in western Montana. Offers HELOCs with competitive rates and has experience with properties in resort and mountain communities.

Clearwater Credit Union (Missoula) Member-owned and community-focused. Known for competitive rates and a straightforward application process. Good option for Missoula-area homeowners.

National Lenders Serving Montana

U.S. Bank Has a significant branch presence in Montana and offers HELOCs with autopay discounts. Good online tools and a streamlined application process.

Wells Fargo Available in Montana with competitive HELOC products, though they periodically adjust availability. Offers fixed-rate lock options.

Figure An online lender offering a fully digital HELOC process. Can fund in as little as five days. Uses a fixed-rate structure rather than the traditional variable rate, which appeals to borrowers who want payment predictability.

Spring EQ Online lender specializing in home equity products. Offers HELOCs and home equity loans with competitive rates. Available in Montana and worth comparing.

Montana HELOC Regulations and Consumer Protections

Montana follows federal lending regulations (TILA, RESPA) and adds some state-level protections:

• Right of rescission: You have three business days after closing to cancel a HELOC on your primary residence without penalty. This is a federal right under the Truth in Lending Act.
• No prepayment penalties: Montana law generally prohibits prepayment penalties on residential mortgage products, including HELOCs. You can pay down or pay off your balance at any time without extra charges.
• Foreclosure process: Montana is a non-judicial foreclosure state, meaning lenders can foreclose without going through court. The process typically takes about 150 days. This is relevant because a HELOC is secured by your home — if you default, the lender can foreclose.
• [Homestead exemption](/blog/homestead-exemption-guide): Montana allows a homestead exemption of up to $350,000, which protects a portion of your home equity from most creditors in bankruptcy. However, this doesn't prevent a HELOC lender from foreclosing, since you've voluntarily pledged your home as collateral.
• Licensing: HELOC lenders operating in Montana must be licensed through the Montana Division of Banking and Financial Institutions. You can verify a lender's license status on their website.

Tax Implications for Montana HELOC Borrowers

Federal Tax Treatment

Under current federal tax law (through 2025, with expected extension discussions ongoing), HELOC interest is tax-deductible only if the funds are used to buy, build, or substantially improve the home securing the loan. [Using HELOC funds](/blog/heloc-draw-period-explained) for debt consolidation, education, or other purposes does not qualify for the federal interest deduction.

The deduction applies to combined mortgage debt up to $750,000 ($375,000 for married filing separately). You must itemize deductions to claim it.

Montana [State Income Tax](/blog/states-with-no-income-tax-investing)

Montana has a state income tax with rates ranging from 1% to 6.75% (top bracket). Montana generally follows federal rules for mortgage interest deductions, so if your HELOC interest is deductible federally, it's also deductible on your Montana return.

Montana itemized deductions largely mirror federal itemized deductions, making the calculation relatively straightforward for most borrowers.

Property Tax Context

Montana property taxes are based on market value, with residential property taxed at a rate of approximately 1.35% of market value (effective rate). This translates to:

• $340,000 home (Billings): ~$4,600/year
• $460,000 home (statewide median): ~$6,200/year
• $715,000 home (Bozeman): ~$9,650/year

Montana does not have a general sales tax, so property taxes are a significant revenue source for local governments. Property taxes factor into your overall DTI calculation and monthly housing expenses, which lenders evaluate when you apply for a HELOC.

Smart Uses for a Montana HELOC

• Home improvements: Particularly valuable in Montana where energy-efficient upgrades (insulation, windows, heating systems) can reduce harsh-winter utility costs and boost resale value.
• Building an ADU or guest cabin: Montana's zoning laws are increasingly accommodating accessory dwelling units, and a HELOC can fund the construction.
• Emergency fund backup: Having a HELOC available (but unused) gives you a safety net without costing anything unless you draw on it.
• Debt consolidation: If you have high-interest debt, a HELOC's lower rate can save you money — but only if you're disciplined about not running up new balances.

Frequently Asked Questions

How long does it take to get a HELOC in Montana?

Plan for 2–6 weeks from application to closing. Online lenders like Figure can sometimes close in under a week. Local banks and credit unions typically take 3–5 weeks, partly because in-person appraisals in rural Montana can take longer to schedule.

Can I get a HELOC on a cabin or vacation home in Montana?

Yes, many lenders offer HELOCs on second homes and vacation properties. Expect slightly higher rates (0.25–0.50% more) and lower maximum CLTV ratios (typically 70–80%). Investment/rental properties are harder — fewer lenders offer HELOCs on them, and rates are higher.

Are there closing costs on a Montana HELOC?

It depends on the lender. Many credit unions offer HELOCs with no closing costs or cover them for you if you keep the line open for at least 24–36 months. Banks and online lenders may charge $200–$500 in fees. Appraisal costs ($400–$600) are the biggest variable.

What happens to my HELOC if Montana home values drop?

If your home value declines, your lender can reduce your credit limit or freeze your line. This happened to many homeowners nationally in 2008–2009. It's unlikely in Montana's current market, but worth understanding. You'd still owe any balance you've already drawn.

Can I use a HELOC to buy land in Montana?

Generally, no. HELOCs are secured by your existing home, and you can use the funds however you want — including as a down payment on land. But the HELOC itself must be on a property you already own with sufficient equity.

The Bottom Line

Montana homeowners with solid equity positions have good HELOC options in 2026. The strongest rates come from local credit unions and community banks, which also tend to be more comfortable with Montana's rural and non-standard properties. National lenders and online platforms offer convenience and speed.

Before you apply, check your equity position, compare at least three lenders, and be clear about how you'll use the funds. If the money goes toward home improvements, you'll likely get a tax benefit. If it's for other purposes, you're still getting a lower rate than most other borrowing options — just make sure you have a payback plan.

Your home is collateral. Borrow thoughtfully.

Related Articles

• [Home [Equity Explained](/blog/home-equity-explained): What It Is and How to Build It](/blog/home-equity-explained)
• Property Taxes Explained: How They Work and How to Reduce Them
• Tappable Home Equity: How Much Can You Access?