North Dakota VA Loan Guide 2026
VA.gov Home Loans
VA Lender’s Handbook (M26-7)
ND Housing: Homeownership Programs
ND Tax: Disabled Veterans Property Tax Credit
For most North Dakota Veterans, the federal VA loan is the primary homebuying tool—especially if you want low down-payment flexibility on a primary residence. North Dakota doesn’t operate a separate statewide veteran mortgage program, but you can still use official state resources for down payment/closing cost assistance, benefits support, and property-tax credits where eligible.
VA Home Loans
- Banks and mortgage companies originate VA loans; the VA guaranty supports the loan structure and can reduce required cash down for qualified borrowers.
- Full entitlement: Usually means you’re not constrained by a county loan limit for 0% down, but lender approval still hinges on qualification metrics.
- Partial entitlement: County conforming limits are used to determine entitlement and any down-payment requirement.
- 2026 North Dakota VA loan limit (1-unit): $832,750 statewide for the county-based limit used with partial entitlement calculations.
North Dakota programs
- No dedicated statewide veteran home loan program: North Dakota does not publish a separate, veteran-only statewide mortgage program distinct from the federal VA loan.
- ND Housing (statewide): Homeownership programs may offer down payment and closing cost assistance through participating lenders (program rules apply). ND Housing options.
- Benefits navigation: The ND Dept. of Veterans Affairs can help Veterans and families understand benefits and connect to support services. ND DVA.
Eligibility + COE
- COE required: This confirms entitlement and is a core step before underwriting.
- Qualifying service: The VA uses service-length and discharge/character-of-service rules; Guard/Reserve eligibility can follow a different track.
- Primary residence: VA financing is for homes you intend to occupy as your main residence.
- Lender overlays exist: Credit score and DTI targets can vary by lender—compare offers early.
Property taxes + North Dakota resources
- Disabled Veterans Property Tax Credit: North Dakota provides a homestead-related property tax credit for qualifying disabled Veterans (commonly requiring a service-connected disability rating of 50% or greater). ND Tax details.
- Local filing: Property tax credits and exemptions are typically administered with county-level filing steps—confirm deadlines with your county auditor/assessor.
- Even with 0% down, plan for upfront escrows (insurance and taxes) and winter-related ownership costs that can affect monthly budgeting.
FAQs
What are common closing costs for VA loans in North Dakota?
Does North Dakota offer Veteran property tax exemptions (and who qualifies)?
What are the best next steps to apply for a VA loan in North Dakota?
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
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.
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- 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.
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NDHFA Start Program
The NDHFA Start Program provides affordable mortgage financing and down payment help for first-time homebuyers in Grand Forks.
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- Offers up to $5,000 in down payment assistance.
- Provides competitive mortgage rates.
- Available for first-time buyers and income-qualified repeat buyers.
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Community Action – Grand Forks Homebuyer Assistance
Community Action in Grand Forks offers down payment and closing cost assistance to low-income first-time homebuyers.
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- 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.
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Minot Housing Authority Homebuyer Assistance Program
The Minot Housing Authority offers down payment and closing cost assistance to first-time homebuyers.
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- 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.
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NDHFA Start Program
The NDHFA Start Program offers affordable mortgage options and down payment help for first-time homebuyers in Minot.
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- 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.
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Souris Basin Planning Council Homebuyer Assistance
Souris Basin Planning Council offers down payment and closing cost assistance to eligible first-time homebuyers in Minot.
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- Provides up to $5,000 in assistance.
- Low-interest mortgage options available.
- Available to first-time homebuyers meeting income qualifications.
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West Fargo Homebuyer Assistance Program
West Fargo offers financial support to low- and moderate-income first-time homebuyers.
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- 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.
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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.
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- Provides up to $5,000 in down payment assistance.
- Offers competitive mortgage rates.
- Available to first-time homebuyers and income-qualified repeat buyers.
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Fargo Homebuyer Assistance Program
West Fargo residents can access the Fargo Homebuyer Assistance Program, offering up to $5,000 in down payment help.
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- 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.
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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 Home Values and VA Buyer Snapshot
North Dakota remains a payment-friendly market in 2026, with most buyers balancing price, winter utility costs, and property taxes rather than competing on extreme bidding wars. Fargo and West Fargo often move faster than many smaller towns because of job concentration and inventory churn, while Bismarck, Grand Forks, and Minot can offer more predictable search timelines. Zillow’s Home Value Index puts the typical statewide home value around $274,088, which is why budgeting by total monthly payment is the safest approach. North Dakota housing market trends
| City | Typical Home Value (2026 est.) | Average VA Mortgage Payment* |
|---|---|---|
| Fargo | $309,502 | $1,956 |
| Bismarck | $309,262 | $1,955 |
| Grand Forks | $250,713 | $1,585 |
| Minot | $256,592 | $1,622 |
| West Fargo | $323,475 | $2,044 |
*The VA mortgage payment estimate assumes a 30-year fixed VA loan at 6.5% interest with zero down, principal and interest only. Taxes, insurance, HOA dues, and funding fee status can change totals.
VA Loan Limits and Entitlement in 2026
$832,750
The 2026 baseline conforming loan limit is $832,750. This number matters mainly for partial entitlement cases where guaranty math can create a down payment requirement above the county cap. With full entitlement, borrowers are generally not capped by county limits, and the lender approves the maximum based on income, debts, residual income, and total monthly payment. FHFA 2026 conforming loan limit announcement
Programs That Can Reduce Cash to Close or Improve Stability
North Dakota Housing Finance Agency, Start Program
The Start Program provides financing options through participating lenders and can include down payment help for eligible buyers. Veterans and active-duty service members should confirm current funding, income limits, and lender participation before relying on assistance for an offer strategy. NDHFA Start Program
- Down payment help can reduce cash to close and preserve reserves for escrows, inspections, and early repairs.
- Program steps and documentation should be coordinated with VA underwriting to keep the closing timeline predictable.
- Confirm income limits, purchase caps, and required education early so you do not lose time after going under contract.
Habitat for Humanity North Dakota
Habitat affiliates can support affordable homeownership and repair pathways depending on local capacity and project availability. Habitat for Humanity North Dakota
- Local affiliates may offer builds or repairs, but availability varies by county and current project schedules.
- Many programs include budgeting and homeowner preparation steps that support long-term stability after move in.
- Participation can include sweat equity expectations, so confirm timing and requirements before planning around it.
Disabled Veteran property tax relief reference
Disabled Veteran property tax relief is addressed through state and local rules, and filing is typically handled locally with your county. Start with the county assessor for the property address and use state Veteran resources as the reference point for eligibility categories. North Dakota Department of Veterans Affairs
VA Loan Options Veterans Use Most
The VA program includes buying, refinancing, and improvement options. The order below is intentionally varied and written for winter climates, older housing stock, and smaller market inventory.
VA Purchase Loan
The VA purchase loan is the core option for buying a primary residence with zero down in many cases and no monthly private mortgage insurance. VA loans
- Zero down financing can preserve cash for inspections, escrow setup, moving costs, and early repairs after closing.
- No monthly private mortgage insurance can lower the payment when taxes and insurance already drive affordability limits.
- It can be used for single-family homes, certain condos, and up to four units when you occupy one unit.
Rehabilitation and Renovation Loan
If the home is right but needs updates, VA renovation loans can bundle repairs into the mortgage.
- Bundling repairs into the mortgage can reduce reliance on high interest debt after closing for essential upgrades.
- Written contractor bids and clear scope help underwriting move faster and prevent last minute change orders.
- This option can fund safety fixes, system replacements, and modernization work that protects long-term value.
Interest Rate Reduction Refinance Loan
The IRRRL can lower the rate on an existing VA loan with fewer steps than many full refinances.
- Streamlined documentation often reduces underwriting friction, which helps keep refinance timelines predictable.
- Eligible closing costs can often be included in the loan amount, limiting immediate out of pocket cash needs.
- It works best when monthly savings justify costs and you plan to keep the new loan long enough.
Cash Out Refinance Loan
The Cash-Out Refinance Loan can access equity for repairs, debt consolidation, or major expenses when the new payment stays comfortable.
- Equity access can fund major repairs or debt payoff with a clearer repayment structure than revolving credit.
- This can refinance both VA and non VA loans, depending on entitlement, credit profile, and lender requirements.
- Always underwrite the full new payment including taxes and insurance so the refinance does not strain the budget.
Energy Efficient Mortgage
The VA EEM can finance eco-friendly upgrades that reduce long-term utility costs and improve comfort.
- Efficiency upgrades like insulation and HVAC improvements can reduce utilities and improve comfort during long winters.
- This option can often pair with a purchase or refinance when documentation and improvement scope are clear early.
- Focus on upgrades with measurable payback, since lenders review cost, scope, and feasibility carefully.
Native American Direct Loan
The Native American Direct Loan supports eligible Native American Veterans buying, building, or improving on federal trust land under location specific rules.
- No down payment can reduce upfront barriers for qualifying borrowers on eligible federal trust land locations.
- Eligibility depends on both borrower and property requirements, so confirm trust land status before contract commitments.
- Work with lenders and program contacts who handle NADL regularly to avoid documentation delays.
Your Next Steps
If you are planning to buy in North Dakota, start by pulling your COE and getting a true pre-approval that includes property taxes and homeowners insurance, not just the interest rate. Next, decide what matters most, commute, school district, or monthly payment comfort, then build a short list of neighborhoods and price points that fit your budget. If you may qualify for NDHFA assistance, use a participating lender so program documentation and VA underwriting move together. Once you are under contract, respond quickly to lender conditions, schedule inspections early, and keep repair requests realistic so you stay on track for a predictable closing.
Frequently Asked Questions
What is a VA loan, and how does it work?
A VA loan is a mortgage backed by the Department of Veterans Affairs that helps eligible Veterans, service members, and certain surviving spouses buy, build, or refinance a primary residence. The program can offer zero down in many cases, no monthly private mortgage insurance, and flexible underwriting compared with many conventional options.
What benefits make VA loans attractive in a colder climate?
Zero down and no monthly private mortgage insurance can keep cash reserves available for inspections, escrow setup, and early maintenance needs such as heating system service or winterization. Buyers also tend to benefit from flexible underwriting when they have stable income but limited cash, which is common during relocations.
How do I qualify for a VA loan?
Qualification starts with eligibility, which is documented through a Certificate of Eligibility. Lenders then review income, debts, credit history, and residual income to ensure the payment is sustainable. You must intend to occupy the home as your primary residence, and the property must meet VA minimum standards at closing.
What is the VA funding fee, and do I have to pay it?
The VA funding fee is a one-time charge that supports the loan program, and it varies by loan type, down payment, and whether you have used the benefit before. Many borrowers finance it into the loan. Veterans with qualifying service-connected disabilities are often exempt, which can reduce cash needed at closing.
Can I buy a home in a rural area?
Yes, VA loans can be used statewide as long as the home will be your primary residence and meets VA safety and habitability standards. Rural deals can take longer if appraisers are limited or if well and septic documentation is needed. Scheduling inspections early and using a VA-experienced lender helps keep timelines predictable.
Are there loan limits that cap how much I can borrow?
With full entitlement, most borrowers are not capped by county loan limits and can borrow as much as the lender approves based on the full payment. The $832,750 baseline conforming limit matters mainly for partial entitlement cases where guaranty calculations can trigger a down payment requirement above the county cap.
Can I refinance with a VA loan later?
Yes. The IRRRL can lower the rate on an existing VA loan with fewer steps than a full refinance, while a cash-out refinance can access equity for repairs or major expenses. The right choice depends on breakeven time, how long you expect to keep the home, and the new total payment after taxes and insurance.
What credit score do lenders usually want?
The VA does not set a minimum credit score, but many lenders prefer around 620 for smoother approvals and better pricing. Some lenders can approve lower scores when income, residual income, and recent payment history are strong. A full pre-approval review is the fastest way to confirm your options.
Can I buy a multi-family property with a VA loan?
Yes, VA loans can finance one to four units as long as you occupy one unit as your primary residence. Underwriting will evaluate property condition and a realistic payment, and rental income treatment varies by lender. Confirm documentation requirements and appraisal expectations before writing offers.
Are there closing costs with VA loans?
Yes. Common costs include the VA appraisal, title and settlement charges, recording fees, prepaid homeowners insurance, prepaid interest, and escrow setup depending on the closing date. Seller credits can reduce cash to close, but the contract must stay within VA and lender rules.
Can I renovate a home using VA financing?
Yes. Renovation financing can bundle eligible repair and upgrade costs into the loan when the home meets program requirements. Lenders typically require contractor bids, a clear scope of work, and timelines. This can be useful when a home is a great fit for location but needs updates to systems or safety items.
What assistance programs are available for buyers?
Programs such as NDHFA Start can help eligible buyers reduce cash to close through participating lenders. Assistance availability depends on funding and eligibility rules, so confirm details early. In addition, disabled Veteran property tax relief may reduce long-term costs if you qualify, but local filing is required.
Can surviving spouses use a VA loan?
Yes, certain surviving spouses can qualify for VA loan benefits if they meet eligibility rules and obtain a Certificate of Eligibility. Lenders and VA systems can help document eligibility, and the loan must be used for a primary residence. Confirm documentation needs early to avoid delays during underwriting.