Home financing in Hill County.

Home financing — most commonly a mortgage — is a loan that lets you purchase or refinance a home by spreading the cost over many years, typically 15 to 30.

You make monthly payments that cover the principal (the amount borrowed) and interest (the cost of borrowing).

In Hill County, Montana, the real estate market is anchored by the city of Havre and surrounding agricultural communities. Home prices here are generally lower than the Montana average, which means smaller loan amounts and, often, more manageable monthly payments.

There are several loan types you may encounter:

- **Conventional loans** are offered by banks and credit unions and usually require a credit score of 620 or higher and a down payment of 3–20%.

- **FHA loans** (Federal Housing Administration) allow down payments as low as 3.5% and are more forgiving of lower credit scores. They are a popular starting point for first-time buyers.

- **USDA Rural Development loans** are especially relevant in Hill County because much of the area qualifies as rural. These loans can require zero down payment.

- **VA loans** are available to eligible veterans and active-duty military. Havre is home to many veterans connected to nearby Malmstrom Air Force Base (Great Falls) and Fort Assinniboine history, so local lenders are familiar with VA products.

- **Montana Housing loans** are state-backed programs layered on top of FHA, USDA, or conventional loans to provide lower interest rates and down payment assistance.

Think of a mortgage as a long-term partnership with a lender. The goal is to find terms that fit your actual income — not just the maximum amount a lender will offer you.

Hill County's economy is shaped by agriculture, healthcare (Havre is the regional medical hub for north-central Montana), retail, railroad employment (BNSF has a significant presence), and small construction and trades businesses. If you work in any of these sectors — including as a solo contractor or self-employed tradesperson — you can qualify for a home loan, though your documentation path may differ from a salaried employee.

**Self-employed and solo contractors:** Expect lenders to ask for two years of federal tax returns (Schedule C or Form 1065 if you have a partnership).

Lenders average your net income over two years, so large write-offs can reduce your qualifying income.

A local loan officer familiar with agricultural and trades income — like those at Havre-area credit unions — will understand this better than a call-center lender.

**ITIN holders:** If you do not have a Social Security number but have an Individual Taxpayer Identification Number (ITIN), you can still buy a home in Montana. ITIN mortgages are not government-backed, so you will need to work with lenders who have specific ITIN loan programs.

Several Montana CDFIs and community banks have these programs.

You typically need 2 years of tax returns filed with the ITIN, a larger down payment (often 10–20%), and proof of stable income.

**First-time homebuyers:** Montana Housing defines a first-time buyer as someone who has not owned a home in the past three years. This opens the door to down payment assistance and reduced-rate loans.

**Veterans:** VA loans require a Certificate of Eligibility, but local lenders can help you obtain one. No down payment and no private mortgage insurance (PMI) make VA loans one of the strongest products available.

**Small real estate investors:** If you are purchasing a 1–4 unit property to rent out, you can use conventional or portfolio loans. Local lenders are often more willing to underwrite investment properties in smaller markets like Havre than large national institutions.

Gathering your paperwork ahead of time makes the process much smoother. Here is what most lenders in Hill County will ask for:

**For all borrowers:**

- Government-issued photo ID (driver's license, passport, or Matricula Consular)

- Social Security number or ITIN

- Two most recent pay stubs (if employed by someone else)

- Two years of W-2s or 1099s

- Two years of federal tax returns (all pages, all schedules)

- Two to three months of bank statements

- Information on any other debts (car loans, student loans, credit cards)

**For self-employed or solo contractors, add:**

- Business bank statements (2–3 months)

- Year-to-date profit and loss statement

- Business license or DBA registration, if applicable

**For ITIN borrowers, add:**

- ITIN letter from the IRS

- Two years of tax returns filed under ITIN

- Additional proof of residence (utility bills, lease agreements)

- Larger down payment documentation (source of funds)

**For veterans:**

- DD-214 discharge papers

- Certificate of Eligibility (your lender can often pull this directly)

**For investment properties:**

- Current lease agreements (if the property is already rented)

- Documentation of rental income

Tip: Keep digital copies of everything in a secure folder. You may need to submit these documents to multiple lenders if you are shopping for the best rate, which you should always do.