A Montana DSCR loan is business-purpose financing on a 1-4 family rental, secured by a mortgage or a trust indenture, which MCA 71-1-305 deems a mortgage on real property.
Montana gives lenders two kinds of security and two foreclosure paths, depending on whether the loan uses a mortgage or a trust indenture on a small tract. The deposit return clock runs fast when there are no deductions.
If you plan to pull cash out of a Montana rental, read how the interest on cash-out money is allocated.
How are rental property loans foreclosed in Montana?
Montana mortgages are enforced through a single court action under MCA 71-1-222, while a trust indenture on property of 40 acres or less can be foreclosed by the trustee's advertisement and sale or, at the beneficiary's option, in court under MCA 71-1-304.
| Instrument | Montana foreclosure path |
|---|---|
| Mortgage | One court action (MCA 71-1-222) |
| Trust indenture, 40 acres or less | Trustee sale after breach, or judicial at the beneficiary's option (MCA 71-1-304) |
Exception: Which instrument a lender uses is set by its documents. Ask the lender before you sign.
According to MCA 71-1-222, MCA 71-1-304 and MCA 71-1-305, Montana Legislature, as of October 2026.
Does Montana charge a transfer tax on rental property?
The Montana Constitution provides that the state and local governments may not impose any tax on the sale or transfer of real property, under Article VIII, Section 17.
- The provision bars taxes on the sale or transfer itself, including a sales tax.
- It does not mention mortgages.
Exception: Recording fees still apply. Get the closing figures from the title company.
According to Montana Constitution Article VIII, Section 17, as of October 2026.
What Montana landlord rules affect a rental property's numbers?
Montana requires a landlord to return a security deposit within 10 days if, after inspection, there are no damages, cleaning charges or unpaid rent, or within 30 days after the tenancy ends or the unit is surrendered, whichever is first, with an itemized list when deducting, under MCA 70-25-202.
| Situation | Return deadline |
|---|---|
| No damages, cleaning or unpaid rent | 10 days |
| Deductions taken | 30 days, with an itemized list |
Exception: Read the full section for permitted deductions and notice rules before withholding any amount.
According to MCA 70-25-202, Montana Legislature, as of October 2026.
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Disclaimer
This page is general education about business-purpose real estate financing and state law as published by official sources on the date shown. It is not legal, tax or lending advice, not an offer to lend and not a rate quote. Laws and lender guidelines change; confirm current rules with the lender, the title company and your own attorney or tax adviser.