Montana
Montana VA IRRRL: Big Sky, Small Comp Pool, Usually No Appraisal
Montana is a hard place to appraise a house and an easy place to streamline one. Home Loans Inc is not licensed in Montana, so here is the plain version to carry to a Montana-licensed lender.
Home Loans Inc is not licensed in Montana and cannot take a Montana application. We lend in South Carolina, North Carolina, Virginia, West Virginia, Florida, Georgia, Alabama, Mississippi, Iowa and Wyoming.
Town by town
A quick drive across the state
- Billings. The largest city, with moderate comps.
- Great Falls. A small city shaped by Malmstrom AFB, with thin comps at higher prices.
- Missoula. A university town, growing but expensive.
- Bozeman. Booming, very expensive, resort-influenced.
- Helena. The capital, and a small one.
Then there is everything in between, which is extremely rural with minimal sales history. On a purchase or a construction loan, that is a real problem. On an IRRRL, mostly it is not, because VA usually does not require an appraisal. Your house does not have to prove its value again. Your new loan has to prove it helps you.
Fair warning, and a big one in Montana: some lenders add an appraisal anyway as an overlay. In a state this sparse, that overlay can cause trouble. Ask every lender, up front, whether they require one.
Malmstrom
One base, a lot of missileers
Montana's active military presence comes down to Malmstrom AFB in Great Falls, home of the 341st Missile Wing and its Minuteman III ICBMs. People rotate in, buy with VA financing, and rotate out.
If that is you, good news. You can streamline the Great Falls house after you leave. The IRRRL only requires that you certify you lived there before, not that you live there now. So a rental you kept after orders still qualifies, as long as the existing loan is VA.
That matters a lot in Great Falls. The market is small and the comp pool at higher prices is thin, so selling on short notice is not always appealing. Keeping the house and dropping the rate can be the smarter move. Run the numbers both ways before you decide.
Montana closing rules
Homestead release and who signs
Montana is a homestead state. On a homestead refinance, both spouses generally must execute and acknowledge the mortgage, often through a release of homestead rights. Even if only one of you is on the loan, expect both of you to sign.
The closing itself runs through a title or escrow company, and no attorney is required. Montana is wet-funding, so funds are generally available at signing, subject to the federal right-to-cancel window on a primary residence. Remote online notarization is generally available, which is a real help in a state where the nearest office can be a long drive.
Costs stay simple. There is no mortgage recording tax, only flat recording fees. Prepayment penalties on most current first-lien refinances are limited mainly by federal rules, and foreclosure is non-judicial.
Does yours qualify?
The short VA test
Existing VA loan
An IRRRL only replaces a VA loan with another VA loan. Nothing else qualifies.
Seasoning
At least 210 days after the first payment due date and at least six monthly payments, whichever comes later.
Real benefit
A net tangible benefit, with closing costs paid back by the monthly savings within 36 months.
Funding fee
0.5 percent of the loan, and zero if you receive VA disability compensation. VA usually skips income verification as well.
Home Loans Inc is not licensed in Montana and cannot take a Montana application. That is the honest answer. Take this test to a Montana-licensed lender and make them show their math.
What to ask them: do you add an appraisal overlay, do you add an income overlay, what are the recording fees, and in what month do my savings cover every closing cost? If the answer to the last one is past month 36, the loan does not work under VA rules, no matter how good the rate sounds. And if a lender in Bozeman or Billings quotes you a rate without a payback month, ask again. You are owed that number.
Montana VA IRRRL questions
Will rural Montana comps keep me from getting a VA streamline?
Usually not. VA generally does not require an appraisal on an IRRRL, so thin sales history in rural Montana rarely blocks the loan. Some lenders add an appraisal as an overlay, which can cause problems in sparse areas, so ask each lender before applying.
What is a release of homestead rights on a Montana refinance?
Montana is a homestead state. On a homestead refinance both spouses generally must execute and acknowledge the mortgage, often through a release of homestead rights. Expect both spouses to sign even if only one is borrowing.
I left Malmstrom but kept my Great Falls house. Can I still do an IRRRL?
Yes, if the house has a VA loan. An IRRRL only requires you to certify that you previously occupied the home. You also need the 210-day and six-payment seasoning, a net tangible benefit, and payback of closing costs within 36 months.
Is Home Loans Inc licensed to do VA refinances in Montana?
No. Home Loans Inc is not licensed in Montana and cannot take a Montana application. This page is for education. Compare offers from Montana-licensed lenders and ask whether each one adds an appraisal overlay.