Starting values: $266,100, which is the North Dakota median (37th of 51), 20% down and a 7.40% rate. Monthly cost: $1,804.69 ($1,473.94 loan, $212.92 property tax, $117.83 homeowners insurance). Put 5% down and add PMI and it rises to $2,186.38.
Homestead exemptions and property tax relief
The Primary Residence Credit pays up to $1,600 a year toward property tax on a home you own and live in. It has no age or income limit, and you apply to the state between January 1 and April 1. Lower-income seniors and disabled owners can also get the homestead credit.
First-time buyer programs
The North Dakota Housing Finance Agency's Down Payment and Closing Cost Assistance provides 3% of the first mortgage to low-income buyers who complete homebuyer education.
Transfer and recording taxes
North Dakota has no transfer tax and no mortgage tax.
Closing costs to plan for
Buyer costs are lender, title and recording fees, among the lowest totals in the country.
When property tax bills are due
North Dakota real estate tax for one year is paid the next year. The first installment and any special assessments are due March 1, and paying the whole bill by February 15 earns a 5% discount. Special assessments for streets, water and sewer can be large in growing North Dakota cities, so ask the seller and the city for the remaining balance before you sign; you may be taking over years of payments.
Before you buy in North Dakota
There are two separate credits, and both need an application. The Primary Residence Credit (up to $1,600) goes to the state Tax Commissioner between January 1 and April 1 and has no age or income limit. The Homestead Property Tax Credit is for owners 65 and older or permanently disabled with 2025 household income of $70,000 or less, and for 2026 you file with your local assessor by April 1. Winters are hard on houses, so have an inspector check the heating system, the roof and the foundation for frost damage.
2026 loan limit in North Dakota
FHFA 2026 one-unit conforming limits: no county is high-cost, so $832,750 applies statewide. So $212,880, the 80% loan on a median home, needs no jumbo financing.
North Dakota numbers used above
| Measure | North Dakota | U.S. |
|---|---|---|
| Median home value (ACS 2024) | $266,100 | $360,600 |
| Effective property tax rate | 0.96% (20th highest) | 0.89% |
| Average HO-3 premium (NAIC 2023) | $1,414 | $1,737 |
| Median household income | $77,871 | $81,604 |
| Median gross rent | $980 | $1,487 |
| Income needed at 28% (20% down) | $77,344 | – |
Frequently asked questions
Who can get the North Dakota homestead credit?
Owners 65 or older, or permanently and totally disabled, whose 2025 household income was $70,000 or less. For 2026, apply to your local assessor by April 1.
Is there a discount for paying North Dakota property taxes early?
Yes. Paying the whole year's real estate tax by February 15 earns a 5% discount. Otherwise the first installment is due March 1.
Why are North Dakota closing costs so low?
The state constitution bans real estate transfer and mortgage taxes, so buyers mostly pay lender, title and recording fees.
What is the median-home payment in North Dakota?
About $1,804.69 a month on a $266,100 home with 20% down at 7.40%, including tax and insurance.
Sources
- ND Tax Commissioner, homestead credit
- ND Tax Commissioner, property tax deadlines
- ND Tax Commissioner, Primary Residence Credit
- NDHFA homeownership
- FHFA, 2026 conforming loan limits
- Census ACS 2024 1-year (B25077, B25103, B19013, B25064); NAIC homeowners report (2023); Freddie Mac PMMS.
See also: all states · house affordability · North Dakota paycheck