North Dakota VA Loan Guide for Veterans
North Dakota is home to a dedicated community of veterans, active-duty service members, and their families, all of whom can benefit from the unique advantages of VA loans.
VA loans in North Dakota offer an excellent opportunity for veterans to secure homeownership with no down payment, competitive interest rates, and no private mortgage insurance.
These benefits make it easier for veterans to own a home, whether you prefer the charm of Fargo, the peaceful surroundings of Bismarck, or the tranquility of North Dakota’s rural areas.
This guide will walk you through the VA loan process, from eligibility and application to local programs and property tax exemptions, ensuring a seamless homebuying experience.
In this Article
What are VA Loans?
VA home loans, provided by the U.S. Department of Veterans Affairs, are designed to help eligible veterans, active-duty service members, and certain surviving spouses achieve homeownership. These loans remove traditional hurdles by eliminating down payments and private mortgage insurance (PMI), reducing both initial costs and ongoing payments.
A major advantage of VA loans is their competitive interest rates, which are often lower than those of conventional loans, resulting in long-term savings. The program also offers more lenient credit requirements, making it a great option for individuals who may have difficulty qualifying for other loan types.
VA Loan Benefits
VA loans offer distinct advantages, making them an exceptional choice for veterans, active-duty service members, and eligible surviving spouses. Key benefits include:
No Down Payment
Unlike conventional loans that often require a down payment starting at 3% or more, VA loans remove this hurdle, enabling buyers to allocate funds toward other priorities, such as investments or savings goals. For military families, this can be a game-changer.
Lower Interest Rates
Lower rates mean significant savings over the life of the loan, reducing monthly payments and overall costs. This advantage also increases purchasing power, allowing veterans to afford higher-value homes without exceeding their budget.
Flexible Credit Guidelines
While credit score requirements vary by lender, VA loans often accept scores as low as 620. They also allow for higher debt-to-income (DTI) ratios and provide shorter waiting periods after financial setbacks like bankruptcies or foreclosures.
Limited Closing Costs
Sellers can pay all the buyer’s loan-related closing costs and contribute up to 4% of the loan amount in concessions. Additionally, VA borrowers are exempt from certain fees, further reducing out-of-pocket expenses.
No Private Mortgage Insurance (PMI)
This saves veterans hundreds of dollars annually and maximizes their purchasing power, allowing them to afford more home within their budget. FHA loans, which require both upfront and monthly mortgage insurance premiums, also lack this advantage.
Lifetime Eligibility
VA loan benefits are available for a lifetime, allowing eligible borrowers to reuse them multiple times as long as entitlement criteria are met.
Whether purchasing a first home, upgrading to a larger property, or buying a vacation home, veterans can rely on VA loans at every stage of life. Even if a prior VA loan default occurred, eligibility can often be restored by repaying the loan or reclaiming entitlement. This ensures long-term access to affordable financing options.
Local North Dakota Homebuyer Programs
Fargo Homebuyer Assistance Program Fargo offers down payment assistance for first-time homebuyers in the area.
- Provides up to $5,000 for down payment assistance.
- Available for first-time buyers and those with low-to-moderate income.
- Requires completion of a homebuyer education course. Fargo Homebuyer Assistance
North Dakota Housing Finance Agency (NDHFA) Start Program This program helps first-time homebuyers with affordable mortgages and down payment assistance.
- Offers up to $5,000 in down payment and closing cost assistance.
- Available for income-qualified buyers.
- Provides competitive interest rates on home loans. Learn more about this program.
Homebuyer Assistance Program Administered by Fargo, this program offers financial assistance to low-income first-time buyers.
- Provides up to $5,000 for down payment help.
- Designed for first-time homebuyers with income restrictions.
- No interest, deferred payment loans. Learn more about this program.
Bismarck Homebuyer Assistance Program
Bismarck offers down payment assistance for low- and moderate-income first-time homebuyers.- Up to $5,000 in down payment assistance.
- Homebuyer education course required.
- Available for first-time buyers and low-income households.
NDHFA Start Program
The NDHFA Start Program offers affordable mortgage options and down payment assistance for first-time homebuyers in Bismarck.- Up to $5,000 in down payment assistance.
- Provides competitive mortgage rates for qualifying buyers.
- Available for first-time buyers and income-qualified repeat buyers.
Bismarck Housing Authority (BHA) Homebuyer Assistance
The Bismarck Housing Authority provides down payment assistance for first-time buyers with income qualifications.- Up to $5,000 in down payment assistance.
- Available for low-income first-time buyers.
- Requires completion of a homebuyer education course.
Grand Forks Homebuyer Assistance Program
The Grand Forks Homebuyer Assistance Program offers up to $10,000 in down payment assistance for first-time homebuyers.
- Provides up to $10,000 in down payment help.
- Available for first-time homebuyers who meet income requirements.
- Requires completion of a homebuyer education course.
NDHFA Start Program
The NDHFA Start Program provides affordable mortgage financing and down payment help for first-time homebuyers in Grand Forks.
- Offers up to $5,000 in down payment assistance.
- Provides competitive mortgage rates.
- Available for first-time buyers and income-qualified repeat buyers.
Community Action – Grand Forks Homebuyer Assistance
Community Action in Grand Forks offers down payment and closing cost assistance to low-income first-time homebuyers.
- Provides up to $5,000 in down payment and closing cost assistance.
- Available for low-income first-time homebuyers.
- Requires completion of a homebuyer education program.
Minot Housing Authority Homebuyer Assistance Program
The Minot Housing Authority offers down payment and closing cost assistance to first-time homebuyers.
- Provides up to $5,000 in down payment and closing cost assistance.
- Requires completion of a homebuyer education course.
- Available to first-time homebuyers in Minot.
NDHFA Start Program
The NDHFA Start Program offers affordable mortgage options and down payment help for first-time homebuyers in Minot.
- Offers up to $5,000 in down payment assistance.
- Provides competitive mortgage rates for qualifying buyers.
- Available for first-time homebuyers and income-qualified repeat buyers.
Souris Basin Planning Council Homebuyer Assistance
Souris Basin Planning Council offers down payment and closing cost assistance to eligible first-time homebuyers in Minot.
- Provides up to $5,000 in assistance.
- Low-interest mortgage options available.
- Available to first-time homebuyers meeting income qualifications.
West Fargo Homebuyer Assistance Program
West Fargo offers financial support to low- and moderate-income first-time homebuyers.
- Provides up to $5,000 in down payment assistance.
- Requires completion of a homebuyer education course.
- Available to low- and moderate-income first-time buyers in West Fargo.
NDHFA Start Program
The NDHFA Start Program provides affordable mortgage financing and up to $5,000 in down payment assistance for first-time homebuyers in West Fargo.
- Provides up to $5,000 in down payment assistance.
- Offers competitive mortgage rates.
- Available to first-time homebuyers and income-qualified repeat buyers.
Fargo Homebuyer Assistance Program
West Fargo residents can access the Fargo Homebuyer Assistance Program, offering up to $5,000 in down payment help.
- Offers up to $5,000 in down payment assistance.
- Available for low-to-moderate-income first-time buyers.
- Requires completion of a homebuyer education course.
VA Loan Eligibility Criteria
To qualify for a VA loan, applicants must meet certain service-related criteria set by the Department of Veterans Affairs (VA). These requirements ensure that veterans, active-duty service members, and their families have access to this benefit to assist in homeownership.
Eligibility Criteria:
- Veterans: Those who have completed active-duty service and received an honorable or qualifying discharge.
- Active-Duty Service Members: Current members of the military are eligible for VA loans.
- National Guard and Reserve Members: Must have served at least six years or completed 90 days of active-duty service during wartime.
- Surviving Spouses: Spouses of service members who passed away during service or from service-related conditions may be eligible for VA loan benefits.
Minimum Service Time Requirements:
- 90 days of active-duty service during wartime.
- 181 days of continuous active-duty service during peacetime.
- At least six years of service in the National Guard or Reserves, or a minimum of 90 days of active-duty service under Title 32 orders, including 30 consecutive days.
VA Loan Eligibility Calculator
How to Obtain a Certificate of Eligibility (COE)
Obtaining a VA Certificate of Eligibility (COE) is an essential step in securing a VA loan. This certificate confirms that you meet the service requirements established by the Department of Veterans Affairs.
How to Apply:
- Online: Use the VA’s eBenefits portal for a quick and easy application process.
- Through a Lender: Many VA-approved lenders can request your COE electronically on your behalf.
- By Mail: Complete and submit VA Form 26-1880 to the VA. This method may take longer.
Required Documents:
- Veterans: DD Form 214, which outlines your service history and discharge status.
- Active-Duty Service Members: A statement of service signed by your commanding officer.
- National Guard/Reserve Members: Point statements and proof of service, if not activated.
- Surviving Spouses: A marriage license and the veteran’s death certificate to verify eligibility
North Dakota Housing Market Overview
North Dakota’s housing market presents a range of living options, from the vibrant city life of Fargo to the quiet charm of Minot and Grand Forks. The state’s low cost of living, wide open spaces, and strong sense of community attract a diverse array of homebuyers, including veterans. The median home price in North Dakota is approximately $270,000, making it a relatively affordable option for those seeking to purchase a home.
| City | Average Home Price | Average VA Mortgage Payment* |
|---|---|---|
| Fargo | $290,000 | $1,931 |
| Bismarck | $275,000 | $1,826 |
| Grand Forks | $245,000 | $1,620 |
| Minot | $260,000 | $1,734 |
| West Fargo | $280,000 | $1,866 |
The VA mortgage payment is based on a 30-year fixed loan at 6.5% interest with zero down payment. Actual payments may vary.
North Dakota VA Loan Limit
$806,500
Veterans with full entitlement can borrow up to the lender-approved amount without a down payment. For veterans with partial entitlement, the loan limit for most counties in North Dakota is $806,500. Always consult with lenders to confirm your specific loan eligibility and options.
North Dakota Housing Programs for Veterans
North Dakota Housing Finance Agency (NDHFA) Start Program
The NDHFA Start Program provides financial assistance to eligible veterans, active-duty service members, and their families to help with purchasing homes in North Dakota.
- Offers up to $5,000 in down payment assistance.
- Provides competitive interest rates for qualifying buyers.
- Available to veterans, active-duty service members, and their families.
Learn more at the NDHFA Start Program website.
Habitat for Humanity North Dakota – Veterans Housing Program
Habitat for Humanity North Dakota partners with veterans to provide affordable homeownership opportunities through home construction and renovation projects.
- Veterans can contribute “sweat equity” to reduce costs.
- Offers affordable mortgage options and financial support.
- Promotes stable, long-term homeownership for veterans.
Visit Habitat for Humanity North Dakota for more details.
North Dakota Disabled Veteran Property Tax Exemption
This program provides property tax relief for veterans with service-connected disabilities in North Dakota.
- Offers a full property tax exemption for qualifying disabled veterans.
- Extends eligibility to surviving spouses of disabled veterans.
- Reduces the financial burden of homeownership for veterans.
Learn more through the North Dakota Department of Veterans Affairs.
Types of VA Loans
The Department of Veterans Affairs offers several loan programs designed to help veterans, active-duty service members, and their families achieve homeownership.
VA Purchase Loan
The VA Purchase Loan allows veterans to buy homes with no down payment and competitive interest rates.
- 100% financing with no down payment required.
- Covers single-family homes, VA-approved condos, and multi-unit properties.
- Offers lower interest rates compared to conventional loans.
Learn more about the VA Purchase Loan.
Interest Rate Reduction Refinance Loan (IRRRL)
The IRRRL helps veterans refinance their current mortgage to secure a lower interest rate and reduce monthly payments.
- Requires minimal documentation and no appraisal.
- Lowers monthly payments by reducing interest rates.
- Features low closing costs, often rolled into the loan.
Learn more about the IRRRL.
Cash-Out Refinance Loan
The Cash-Out Refinance Loan enables veterans to access their home equity for home improvements, debt consolidation, or other financial needs.
- Allows up to 100% of home equity to be accessed.
- Can refinance both VA and non-VA loans.
- Offers flexible use of funds to meet financial goals.
Learn more about the Cash-Out Refinance Loan.
Native American Direct Loan (NADL)
The NADL program assists Native American veterans or those married to Native Americans in purchasing, building, or improving homes on federal trust land.
- Requires no down payment.
- Offers competitive interest rates and reduced closing costs.
- Specifically designed for homeownership on federal trust land.
Learn more about the Native American Direct Loan.
VA Renovation Loan
The VA Renovation Loan combines the cost of home purchase and renovation into a single loan, helping veterans finance repairs and upgrades.
- Funds essential repairs, including structural and system upgrades.
- Supports modernization projects like energy-efficient improvements.
- Rolls renovation costs into the loan for simplified financing.
Learn more about the VA Renovation Loan.
Energy Efficient Mortgage (EEM)
The VA EEM helps veterans finance eco-friendly home upgrades to improve energy efficiency and reduce utility costs.
- Covers energy-efficient improvements like solar panels and insulation.
- Works seamlessly with other VA loans for combined financing.
- Helps reduce long-term energy expenses.
Learn more about the VA EEM.
Property Taxes in North Dakota
North Dakota offers property tax exemptions for disabled veterans and their surviving spouses. The exemption amount depends on the veteran’s disability rating and eligibility status.
| Disability Rating | Exemption Amount |
|---|---|
| 100% | Full exemption on primary residence |
| Partial Rating | Varies by county regulations |
| Surviving Spouses | Eligibility depends on local rules |
To learn more about your eligibility and apply, contact your local county tax assessor’s office or visit the North Dakota Department of Veterans Affairs.
Frequently Asked Questions
What is a VA loan, and how does it work?
A VA loan is a mortgage program offered by the Department of Veterans Affairs (VA) to help veterans, active-duty service members, and eligible spouses buy, build, or refinance a home. VA loans feature benefits like no down payment, competitive interest rates, and no private mortgage insurance (PMI).
What are the benefits of a VA loan in North Dakota?
North Dakota veterans can enjoy several VA loan benefits, including:
- No down payment required.
- Competitive interest rates.
- No PMI, reducing monthly payments.
- Flexible credit requirements.
- Options to buy, refinance, or renovate homes.
How do I qualify for a VA loan in North Dakota?
Eligibility for a VA loan depends on factors such as service history, duty status, and discharge type. Typically, you’ll need:
- A Certificate of Eligibility (COE) to prove your military service.
- Sufficient income and creditworthiness, as determined by the lender.
- Intention to use the home as your primary residence.
What is the VA funding fee, and do I have to pay it?
The VA funding fee is a one-time payment that supports the VA loan program. It varies based on factors like:
- Loan type (first-time use or subsequent use).
- Down payment amount.
Certain veterans, such as those with service-connected disabilities, may be exempt from paying this fee.
Can I use a VA loan to buy a home in rural North Dakota?
Yes, VA loans can be used to purchase homes in rural areas across North Dakota, as long as the home meets VA standards for safety and livability. This includes single-family homes, manufactured homes, and VA-approved condos.
Are there VA loan limits in North Dakota?
As of 2024, veterans with full entitlement can borrow up to the lender-approved amount without a down payment. For those with partial entitlement, county-specific VA loan limits may apply. In North Dakota, these limits vary based on home prices in your region.
Can I refinance my North Dakota home with a VA loan?
Yes, VA refinancing options include:
- Interest Rate Reduction Refinance Loan (IRRRL): Lowers your interest rate and monthly payments.
- Cash-Out Refinance Loan: Lets you access home equity for expenses like home improvements or debt consolidation.
What are the credit requirements for VA loans in North Dakota?
The VA doesn’t set a minimum credit score, but most lenders require a score of at least 580 to 620. Your lender will assess your overall financial profile, including income and debt levels.
Can I use a VA loan to buy a multi-family property in North Dakota?
Yes, VA loans allow you to purchase multi-family properties with up to four units, provided you live in one of the units as your primary residence.
Are there closing costs with VA loans in North Dakota?
Yes, VA loans have closing costs, which may include:
- Appraisal fees.
- Title insurance.
- Origination fees.
These costs are typically lower than conventional loans and can sometimes be negotiated with the seller or rolled into the loan amount.
Can I use a VA loan to renovate a home in North Dakota?
Yes, the VA Renovation Loan allows you to finance the purchase of a home and cover renovation costs under one loan. This can include repairs, energy-efficient upgrades, or modernization projects.
What assistance programs are available for veterans buying homes in North Dakota?
In addition to VA loans, North Dakota offers programs like:
- North Dakota Housing Finance Agency (NDHFA) programs for down payment and closing cost assistance.
- Disabled Veteran Property Tax Exemptions to reduce the financial burden of homeownership.
Contact local VA offices or housing agencies for more details.
Can surviving spouses use a VA loan in North Dakota?
Yes, surviving spouses of veterans who died in service or from a service-related disability may qualify for a VA loan. They must meet specific eligibility requirements and provide documentation to obtain a Certificate of Eligibility (COE).
