Lender LendingTree rating and “best of” category Lender review
Refinance loansRead our review
VA loansRead our review
Jumbo loansRead our review
Online mortgage experienceRead our review
FHA loansRead our review
Home equity loansRead our review
Mortgage loan varietyRead our review
Learn more about how we chose our list of the best mortgage lenders.
Homebuying is governed by rules and regulations in every state. Read on for more about what to expect in North Dakota.
North Dakota recently passed a property disclosure law that mandates sellers must disclose the overall condition of their homes, as well as any known defects or potential hazards, when a licensed real estate agent or broker is used in the sale of an owner-occupied property.
North Dakota is an equitable distribution state. This means in the case of divorce, a court decides how all assets — including real estate — will be fairly divided between the couple. This is different from a community property state, where assets are typically split equally. Courts in North Dakota also have the right to direct that either person in a divorcing party submit a proposed summary real estate judgement so that real estate can be formally transferred from one owner to another.
North Dakota is a judicial foreclosure state, which means the bank or lender must go to court to pursue a foreclosure. The state also allows for so-called deficiency judgments, which means a lender may be able to sue a borrower if the auction price a foreclosed home receives is less than the remaining value of the mortgage. This kind of judgement, however, is only allowed for properties that meet certain conditions, such as those not occupied by the owner or multifamily homes with more than four units.
Potential buyers can expect one nice break in North Dakota: no real estate transfer taxes. Unlike most states, North Dakota does not charge these taxes, which pay for title transfer when a home is sold.
North Dakota does charge residents for property taxes. However, the state now ranks in the middle compared to other states. According to Tax-rates.org, the median property tax in North Dakota is now $1,658, based on a home value of $116,800. Statewide, the difference in average property tax varies from 0.46% to 1.87%, depending on the county, while the average property tax rate is 1.42% of a home’s assessed fair market value.
For homeowners still looking for relief from high property tax bills, it may help to know that North Dakota does offer property tax credits to disabled veterans, senior citizens, people with disabilities and low-income homeowners. To see if you’re eligible, check either this tax website or this one for disabled veterans.
All North Dakota counties have a maximum conforming loan limit of $484,350.
Conforming loans are mortgages that adhere to guidelines and limits that have been set for Fannie Mae and Freddie Mac. These two government-sponsored enterprises set national loan limits each year, and the limits help bring liquidity and stability to the market for the conventional loans most consumers take on.
Conventional loans that conform to federal limits generally provide the best interest rates to consumers who have good credit. Loans with amounts above these limits are called jumbo loans, and they tend to be riskier and often come with higher interest rates.
The North Dakota Housing Finance Agency (NDHFA) offers a number of programs that can help buyers either get a more affordable mortgage or pay down payment and closing costs.
The FirstHome program provides affordable mortgages to low- and moderate-income buyers.
To qualify, you must:
Low- and moderate-income buyers can apply for affordable mortgages through the HomeAccess program if they or members of their household are single parents, veterans, disabled persons, or over 65.
Each category has specific requirements for eligibility, as well as income and purchase price limits. You must be planning to use the home as your primary residence, and you must pay $500 as an out-of-pocket investment.
The North Dakota Roots program is aimed at moderate-income buyers who have previously owned a home. It offers more generous income limits for buyers who plan to use their new home as a primary residence and are willing to pay $500. Loan amounts must conform to current lending limits.
For eligible borrowers, the Start program offers both a lower-cost mortgage and help paying down payment and closing costs. In addition to NDHFA’s loan programs, the state agency also provides down payment and closing cost assistance to eligible borrowers.
Start is:
Read more about our