North Dakota Mortgage Guide 2026

Buying a Home in North Dakota

North Dakota has long flown under the radar as one of the more affordable places to buy a home in the continental U.S. The median home value statewide sits around $290,000 as of early 2026 — roughly $140,000 below the national median — and that gap holds even after several years of modest appreciation. Fargo has climbed past $330,000; Bismarck and Grand Forks occupy the $280,000–$300,000 range; smaller cities and rural markets remain well below $250,000.

Lower purchase prices translate directly into lower mortgage payments, smaller down payments, and reduced closing-cost totals. Add in a below-average effective property tax rate, a constitutionally guaranteed ban on real estate transfer taxes, and a robust state housing finance agency, and the picture for first-time buyers looks better here than in most states at comparable income levels.

North Dakota Property Taxes

The Tax Foundation places North Dakota's effective property tax rate on owner-occupied housing at approximately 0.92% for 2026 — below the national average of roughly 1.0%, though not dramatically so. What matters more to buyers is the actual dollar figure: on a $290,000 home, that effective rate produces an annual tax bill near $2,670, or about $222 per month through escrow.

County-level rates vary. Cass County (Fargo) and Burleigh County (Bismarck) tend to run close to — or slightly above — the statewide average because of higher assessed values and local mill levies. Smaller counties in the western oil patch or agricultural heartland often have lower effective rates. The only way to know what you'll actually pay is to look up the specific property's most recent tax bill or contact the county auditor.

One meaningful recent development: North Dakota enacted a Primary Residence Credit program offering up to $1,600 per household in property tax relief for tax years 2025 and 2026. The 2024 version provided $500; the legislature increased it significantly. Roughly 50,000 households benefit. This credit reduces your net annual tax bill directly — so the effective rate you pay as an owner-occupant can land below the headline figure. Ask your county auditor about the application process before your first tax bill arrives.

Closing Costs in North Dakota

North Dakota buyers consistently pay some of the lowest closing costs in the country. Most estimates put total buyer closing costs between 2% and 3% of the purchase price — meaning on a $290,000 home, you're looking at roughly $5,800 to $8,700 out of pocket before your down payment.

A key reason: North Dakota has no real estate transfer tax at any level of government. That prohibition was locked into the state constitution by Measure 2, passed in November 2014 with 75% of the vote. The amendment bars the state, counties, cities, townships, and every other government subdivision from ever imposing a transfer tax on property sales. In states like Maryland, New York, or Washington, transfer taxes can add 1%–2% or more to closing costs. In North Dakota, that line item is zero.

Sellers in North Dakota typically carry 6%–9% in closing costs — primarily real estate commissions and title-related fees — but like buyers, they pay no transfer tax. The absence of that tax makes North Dakota one of the cleaner, lower-friction states for real estate transactions.

First-Time Buyer & Down Payment Assistance Programs

The North Dakota Housing Finance Agency (NDHFA), operating publicly as ND Housing, is the state's primary source of below-market mortgage financing and down payment help. The agency has financed more than 56,000 home purchases over its history and helped nearly 4,000 families in a recent single year. All programs require the home to be a principal residence and a minimum $500 out-of-pocket cash contribution from the borrower. Homebuyer education is required for most programs.

FirstHome

The flagship program targets buyers who have not owned a primary residence in the past three years. NDHFA provides a 30-year, fixed-rate mortgage at a below-market interest rate funded through tax-exempt mortgage revenue bonds. Income limits and purchase price caps apply and vary by county and household size; check ndhousing.nd.gov for current figures. FirstHome can be paired with either the DCA or Start assistance programs (see below).

HomeAccess

HomeAccess extends the same below-market financing available through FirstHome to three groups that don't need to meet the first-time buyer test: single parents with at least one dependent child in the home at least half the time, veterans who served in active duty and were honorably discharged, and households where the borrower, spouse, or a dependent is permanently disabled or age 65 or older. Income and purchase price limits still apply. HomeAccess can also be paired with DCA or Start assistance.

North Dakota Roots

Roots serves buyers who are either returning to North Dakota, new state residents, or have incomes that exceed the FirstHome/HomeAccess limits. There are no income caps and no purchase price limits on the Roots program — a significant difference. Buyers can access either a below-market rate loan or a market-rate loan that includes down payment and closing cost assistance. The Roots program can be paired with Start (but not DCA) for the assistance component.

Start (Down Payment & Closing Cost Assistance)

Start provides assistance equal to 3% of the first mortgage loan amount as a credit toward out-of-pocket costs — covering down payment, closing costs, and prepaid items. On a $275,000 loan, that's $8,250 applied at closing. Start cannot be combined with DCA or any other down payment assistance program, and it's limited to one- or two-unit properties where the borrower occupies one unit.

DCA (Down Payment & Closing Cost Assistance)

The DCA program also provides 3% of the first mortgage amount as a credit toward out-of-pocket costs, but it carries tighter income limits than Start — targeted at lower-income buyers. DCA requires completion of a homebuyer education course with a certificate dated before loan closing, and it cannot be combined with any other down payment assistance. Available on one- or two-unit owner-occupied properties.

Sample Monthly Payment (Estimate)

The table below illustrates a hypothetical North Dakota purchase — not a quote. It uses a $290,000 home price, which is near the current statewide median, with 5% down. Your rate, insurance premium, and tax bill will differ.

A buyer using NDHFA's FirstHome or North Dakota Roots program with a below-market rate could reduce the principal and interest component by $80–$200 per month compared to a standard conventional loan at current market rates — a meaningful difference over 30 years. The Start or DCA assistance also reduces cash needed at closing, which lets buyers preserve savings for reserves or property improvements.

On the insurance side, North Dakota sits around 35% below the national average at roughly $2,256 per year (Insure.com). Hail storms, blizzards, and spring flooding in the Red River Valley are the main drivers of claims, so if you're buying in eastern North Dakota, confirm your policy covers sump pump failure and surface water backup — standard policies often exclude both.