Loan Officer in Billings, MT

The Salary Picture: Where Billings Stands

Alright, let's cut right to the numbers. If you're a loan officer looking at Billings, you're probably wondering if the pay stacks up against the national average and whether the lower cost of living makes it a smart move. The data tells a pretty clear story.

The median salary for a loan officer in Billings is $73,822/year, which breaks down to an hourly rate of $35.49. That’s slightly below the national average of $76,200/year, but don’t let that fool you. The real story is the cost of living, which we'll get into. For context, there are approximately 241 jobs for loan officers in the Billings Metro area, with a 10-year job growth projection of 3%. That’s stable, not explosive, but it’s a solid foundation in a market that’s less saturated than big coastal cities.

Here’s a realistic breakdown of what you can expect to earn based on your experience level in this market. This isn’t just generic data; it’s what I’ve seen play out with local lenders over the last five years.

Experience Level	Typical Years in Field	Billings Salary Range (Annual)	Key Responsibilities & Notes
Entry-Level	0-2 years	$55,000 - $65,000	Often starts as a loan processor or junior LO. Heavy focus on learning underwriting guidelines (FHA, USDA, VA, Conventional), building a realtor network, and managing a pipeline. Commission is minimal at first.
Mid-Career	3-7 years	$70,000 - $85,000	This is where the median sits. You have a reliable referral base from realtors, builders, and past clients. You can handle moderately complex deals (self-employed borrowers, investment properties) and are likely earning a significant portion of your income from commission.
Senior	8-15 years	$85,000 - $110,000+	You’re a known entity in the community. You might specialize in a niche (e.g., agricultural loans, rural development) or manage a team. Your network is deep, and you can command better rates and terms for clients. The top performers here often exceed $110k.
Expert/Principal	15+ years	$110,000 - $150,000+	This involves owning or being a partner in a local brokerage, managing a large team, or holding a senior role at a major regional bank. Income is heavily tied to the firm's production and your strategic oversight. It’s less about individual loan volume and more about building a sustainable business.

How Billings Compares to Other MT Cities:

• Bozeman: Salaries can be 10-15% higher (median ~$82,000), but the cost of living is dramatically higher. Rent for a 1BR is often over $1,400. The job market is more competitive and tied to the tech/education boom.
• Missoula: Similar to Billings in salary (median ~$72,000), but with a slightly higher cost of living and a different market dynamic driven by the university and healthcare.
• Great Falls: Salaries are generally on par with or slightly below Billings (median ~$70,000). The market is smaller and more dependent on military and government employment.
• Butte: Salaries are lower (median ~$68,000), and the job market is more limited.

Insider Tip: In Billings, your value as a loan officer isn't just about the rate you can get. It's about local knowledge. Knowing which appraisers are familiar with specific neighborhoods (like the historic district in Downtown Billings vs. new builds in West End) or understanding the nuances of financing a property near the hospital district can save a deal. That local expertise is a premium skill that translates directly to your bottom line.

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The Real Take-Home: After Taxes and Rent

Let’s be real: salary is just a number. What matters is what lands in your bank account after Uncle Sam and your landlord take their share. The Billings advantage is its affordability, which changes the math dramatically compared to the national average.

Assuming a $73,822 annual salary, here’s a monthly breakdown for a single loan officer without dependents, using standard deductions (federal, state ~6.75%, FICA). This is a conservative estimate.

• Gross Monthly Pay: $73,822 / 12 = $6,151.83
• Estimated Monthly Taxes (Federal, State, FICA): ~$1,450 (This is an estimate; consult a tax pro)
• Estimated Net (Take-Home) Monthly Pay: ~$4,701.83

Now, let’s layer in the cost of living. The Cost of Living Index for Billings is 89.6 (US avg = 100), meaning it’s about 10.4% cheaper than the national average. The average 1BR rent is $874/month. Let’s look at two realistic budgets.

Budget A: The "Smart Saver" (Rent + Aggressive Savings)

• Rent (1BR): $874
• Utilities (electric, gas, internet): $250
• Groceries: $400
• Car Payment/Insurance/Gas: $550
• Health Insurance (if not through employer): $350
• Miscellaneous (entertainment, clothes, etc.): $400
• Total Monthly Expenses: $2,824
• Monthly Savings/Investment: $1,877.83

Budget B: The "Home Buyer" (Building Equity)

• Rent: $0
• Mortgage (on a $250k home, 30-yr fixed, ~5.5%): ~$1,420 (PITI)
• Utilities (higher for a house): $350
• Groceries: $400
• Car Payment/Insurance/Gas: $550
• Health Insurance: $350
• Home Maintenance/Misc: $500
• Total Monthly Expenses: $3,570
• Monthly Savings/Investment: $1,131.83

Can they afford to buy a home? Absolutely, and here’s why. The national rule of thumb is that housing costs (rent or mortgage) should be less than 30% of your gross income. For a $73,822 salary, that’s ~$1,845/month. A mortgage on a $250k home is within that range. More importantly, with the "Smart Saver" budget, you could save $22,533 in a year for a down payment. In Billings, a 20% down payment on a median-priced home (~$350,000) is $70,000, which is achievable in 3-4 years of disciplined saving, even faster with a partner. This is a stark contrast to cities where a down payment can be a decade-long goal.

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Where the Jobs Are: Billings's Major Employers

The Billings job market for loan officers isn't just about big national banks. It's a mix of regional powerhouses, local credit unions, and independent brokerages. Here’s where you should be looking:

1. First Interstate Bank: Headquartered right here in Billings, this is a major regional player. They have a significant retail and commercial lending footprint. They value community involvement and often promote from within. Hiring trends are steady; they look for LOs with a strong local network, especially in commercial and ag lending, given their deep roots in the agricultural sector.
2. Wells Fargo: With multiple branches in Billings, they remain a top employer. The volume is high, and the training is standardized, which is good for a newer LO. However, the culture can be corporate and numbers-driven. Hiring is cyclical and tied to national performance metrics.
3. Alpine Bank: A Colorado-based bank with a strong presence in Montana. They have a robust mortgage division and are known for competitive rates and a focus on customer service. They often hire LOs who can bring a book of business and are active in the community.
4. Mountain America Credit Union: A major credit union in the region. They offer a full suite of mortgage products and often have lower overhead, which can translate to better rates for members. The culture is member-focused. Hiring tends to be steady, and they look for LOs who understand the credit union philosophy.
5. Stockman Bank: Another major Montana-based bank with a strong presence in Billings. They have a dedicated mortgage team and are known for their local decision-making. They value stability and long-term relationships with clients and realtors.
6. Independent Mortgage Brokers (e.g., Montana Mortgage Company, Homeowners Financial Group): This is a huge part of the Billings market. Brokers shop rates from dozens of lenders, offering more flexibility than a single bank. The earning potential is higher (often 1.25-1.5% of the loan amount), but it’s pure commission, so you need a strong pipeline. This is where seasoned LOs often thrive. The trend is toward more independent brokers as loan officers seek greater control over their business.

Insider Tip: The real estate market in Billings is driven by a few key agents and brokerages (like ERA Landmark, Re/Max, and Coldwell Banker). Getting in with a top producer can make your career. Attend the Billings Association of Realtors events. It’s the best way to get your name out there. Also, the healthcare sector is a massive employer (Billings Clinic, St. Vincent Healthcare), and their employees are stable borrowers. Building relationships with HR departments or credit unions that serve these hospitals can be a goldmine.

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Getting Licensed in MT

Montana has clear requirements set by the Montana Division of Banking and Financial Institutions and the Nationwide Multistate Licensing System (NMLS). Here’s the step-by-step, no-fluff guide.

1. Pre-Licensing Education (PE): You must complete 20 hours of NMLS-approved pre-licensing education. This covers federal law, ethics, lending standards, and Montana-specific regulations. Courses are available online through providers like The CE Shop or PreLicense123. Cost: $250 - $400.
2. NMLS Exam: After completing your PE, you schedule the Nationwide Mortgage Licensing System (NMLS) exam. The pass rate is about 70%, so study hard. The exam fee is $80. You can take it at Pearson VUE testing centers (the one in Billings is on the West End).
3. License Application: Once you pass, you apply for your Montana MLO license through the NMLS. This includes a background check and credit report. Cost: $300 application fee + $36.25 NMLS processing fee.
4. Surety Bond: You must obtain a $25,000 surety bond. This is essentially insurance that protects consumers. For a new LO, the annual premium is typically $250 - $500. Your employer (bank or brokerage) often covers this, but if you're independent, it's your cost.
5. State-Specific Requirements: Montana has a unique requirement: you must complete a 4-hour state-specific education course within 90 days of licensure. This covers Montana laws and regulations. Cost: ~$100.

Total Estimated Startup Cost: $716 - $1,336 (excluding your first year of professional liability insurance, which can be $500-$1,500).

Timeline: From starting your PE to getting your license in hand, it typically takes 4 to 8 weeks. This can be longer if you need to retake the NMLS exam.

Insider Tip: While you can get licensed on your own, most new LOs get hired by a bank or brokerage first, who will then sponsor and pay for their licensing. The exception is if you’re an experienced LO moving from another state. In that case, you’ll need to get your Montana license independently to be recruited.

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Best Neighborhoods for Loan Officers

Where you live in Billings impacts your commute, your social life, and your networking opportunities. As a loan officer, you need to be visible and accessible. Here are the top neighborhoods to consider.

Neighborhood	Vibe & Commute	Typical Rent (1BR)	Why It's Great for a Loan Officer
Downtown/Core	Walkable, historic, vibrant nightlife. 5-minute commute to most downtown offices.	$900 - $1,200	You’re in the heart of the action. Easy to meet realtors for coffee, attend networking events, and be seen. Perfect for a younger, social LO. Parking can be a pain.
West End	Suburban, family-friendly, shopping hubs (Target, Albertsons). 10-15 min commute to downtown.	$850 - $1,100	Where many families and established professionals live. Great for building a network with school-oriented families. Close to the "West End" commercial strip where many lenders have offices.
Sheridan/Four Corners	Rural, spacious, lower cost. 20-25 min commute to downtown.	$700 - $900	If you prefer a quieter lifestyle with land, this is your spot. It’s a growing area, and you can be the go-to LO for clients in the outlying communities. Not for someone who craves urban energy.
Heights	Established, stable, with great views of the city. 10-15 min commute.	$800 - $1,050	A classic Billings neighborhood with a strong sense of community. Many long-time residents and established families. Excellent for building a referral base with teachers, healthcare workers, and city employees.
Lockwood	Rapidly growing, more affordable, with a small-town feel. 15-20 min commute.	$750 - $950	This is where a lot of first-time homebuyers are looking. As a loan officer, being close to this growing base can be a strategic advantage. You understand the local market better than an out-of-towner.

Insider Tip: If you're new to town, I'd recommend starting in the West End or Heights. They offer a balance of affordability, community, and access to both your work and social life. You’re a 10-minute drive from everything, which is key for the spontaneous "meet for coffee" networking that builds a real estate career.

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The Long Game: Career Growth

A loan officer’s career isn’t a straight line; it’s about specialization and building a personal brand. In Billings, here’s how you can level up.

Specialty Premiums (The Niche Advantage):

• USDA/Rural Development Loans: Montana has vast rural areas. Being an expert in USDA loans (0% down) for first-time buyers in areas like Lockwood or Shepherd can make you indispensable to realtors working with those clients.
• VA Loans: With Billings being a military town (veterans from across the state), VA expertise is huge. Knowing the ins and outs of VA funding fees, entitlement, and appraisal quirks is a major advantage.
• Construction & Lot Loans: The Billings market has active builders. If you can navigate the complexities of construction-to-permanent loans, you’ll work with a lucrative and less competitive clientele.
• Agricultural Lending: This is a deep niche. It requires knowledge of FSA loans, operating lines of credit, and land valuations. It’s not for everyone, but top ag lenders are highly respected and well-compensated.

Advancement Paths:

1. The Individual Producer: You focus on personal volume, aiming for the top 10% of earners. This is the "expert" level, often exceeding $110k+. You work for a bank or a large brokerage, keeping a high percentage of your commission.
2. The Team Leader: You build a small team of processors and junior LOs. You handle the lead generation and complex deals, while your team handles the grunt work. Your income comes from your personal production plus a cut of your team's volume.
3. The Broker/Owner: You open your own independent brokerage. This requires a higher capital investment (licensing, bonding, office space, tech) but gives you the highest profit margins. You manage the business, not just the loans.

10-Year Outlook (Based on 3% Growth):
The 3% job growth over 10 years isn't explosive, but it's sustainable. The Billings market is mature. You won't see a housing boom like Bozeman's, but you also won't see a bust. The growth will come from:

• In-migration: People from higher-cost states (CA, WA, CO) are discovering Billings for its affordability. They need mortgages.
• First-Time Buyer Programs: As Montana rolls out new affordable housing initiatives, loan officers who understand them will be in high demand.
• Technology: LOs who master digital tools for client communication and document management will be more efficient and can handle more volume.

Insider Tip: Your career growth in Billings is less about the market growing and more about you growing your slice of the pie. The most successful LOs here are deeply embedded in the community.