HELOC Rates in North Dakota: A Homeowner's Guide to Home Equity in 2026

North Dakota may be one of the least populated states in the country, but its homeowners often find themselves in an enviable position: affordable housing, strong equity positions, and a cost of living that makes debt manageable. If you're a homeowner in the Peace Garden State thinking about tapping your equity, here's what you need to know about HELOCs in 2026.

North Dakota Housing Market Overview

North Dakota's housing market is shaped by two main forces: the energy economy in the western part of the state and the steady, diversified economy anchored by Fargo in the east.

Current median home values across key markets:

• Fargo-Moorhead metro: $290,000 – $320,000
• Bismarck-Mandan: $280,000 – $310,000
• Grand Forks: $240,000 – $265,000
• Minot: $230,000 – $260,000
• Williston: $260,000 – $295,000 (volatile, tied to oil activity)
• Rural areas: $130,000 – $200,000

The Bakken oil boom of the early 2010s sent home prices in western North Dakota skyrocketing, followed by a correction when oil prices dropped. By 2026, those markets have largely stabilized. Fargo, meanwhile, has experienced steady, sustainable growth — it's the economic engine of the state and consistently ranks among the best small cities in America for economic opportunity.

North Dakota's homeownership rate is approximately 64%, and with median home prices well below the national average, many homeowners have substantial equity relative to their income.

Current HELOC Rates in North Dakota

HELOC rates in North Dakota in early 2026:

North Dakota has fewer lenders competing for HELOC business than more populated states, which can mean slightly less competitive pricing. However, the state's strong credit union network helps keep rates in check. Community banks also play a larger role here than in most states.

What You Need to Qualify

Standard requirements for a HELOC in North Dakota:

• Credit score: 620 minimum; 680+ for competitive rates
• CLTV: Most lenders cap at 80%, some allow 85%
• Debt-to-income: 43% or less preferred
• Equity: At least 15-20%
• Income verification: W-2s, pay stubs, tax returns
• Property appraisal: $300-$450 in most markets; can be challenging in rural areas with few comparable sales

Oil country considerations: If you're in Williston, Watford City, or other Bakken-area communities, lenders may be more conservative on property valuations due to the history of boom-bust pricing. You may face a lower CLTV cap or need a full interior appraisal rather than a desktop or drive-by valuation.

Rural properties: Homes on large acreage, agricultural properties, and homes in very small towns can be harder to appraise accurately. Some lenders won't offer HELOCs on properties over a certain acreage or in areas without sufficient comparable sales data.

Best Lenders for North Dakota HELOCs

Local and Regional Options

Gate City Bank Headquartered in Fargo, Gate City Bank is one of the largest community banks in North Dakota. They offer competitive HELOC rates and have a strong reputation for customer service. With branches across the state, they understand local markets well — from Fargo's suburban growth to Bismarck's government-centered economy.

Bell Bank Another Fargo-based institution, Bell Bank has grown into one of the largest independently owned banks in the country. Their HELOC products feature competitive rates and flexible terms. Strong presence in both the Fargo metro and western North Dakota.

Town & Country Credit Union Serving the Minot area and beyond, Town & Country offers competitive HELOC rates with low fees. Good option for homeowners in north-central North Dakota.

AFCU (American Federal Credit Union) Based in Fargo, AFCU serves the greater Fargo-Moorhead area with competitive home equity products. Low closing costs and no annual fees on their HELOC.

Starion Bank A community bank with roots in Bismarck-Mandan and branches across North Dakota. Starion understands the agricultural and energy-influenced property markets in western and central North Dakota, which can be an advantage if your property doesn't fit a typical suburban profile.

National Lenders Active in North Dakota

U.S. Bank: Has a significant branch presence in North Dakota and offers competitive HELOC terms with no closing costs on most products.

Wells Fargo: Active in the state's larger markets. Offers rate discounts for existing banking customers.

Figure: Online-only HELOC with fast closings. Fixed-rate product that works well for borrowers who want simplicity and speed.

Third Federal Savings & Loan: Known for some of the [lowest HELOC rates](/blog/best-heloc-rates-2026) nationally. No physical presence in North Dakota but accepts applications from the state.

Spring EQ: Good option for borrowers with non-traditional income or higher DTI ratios. Specializes in home equity products.

North Dakota State Regulations

North Dakota's regulatory environment for HELOCs is relatively straightforward:

• No prepayment penalties: North Dakota generally prohibits prepayment penalties on residential loans, including HELOCs.
• Foreclosure process: North Dakota allows both judicial and non-judicial foreclosure. The non-judicial process (power of sale) is more common and typically takes about 2-3 months from the initial notice to the sale. Judicial foreclosure can take 6-12 months.
• Right of rescission: The standard federal three-business-day cancellation period applies.
• Redemption period: North Dakota provides a redemption period after foreclosure during which the borrower can reclaim the property by paying the full amount owed. For non-judicial foreclosure, the redemption period is 60 days; for judicial foreclosure, it's one year.
• Interest rate regulations: North Dakota's usury limit is 5.5% above the average Treasury bill rate, or 7%, whichever is greater, for non-exempt lenders. Federally chartered banks and credit unions are exempt from state usury laws.
• Community property: North Dakota is not a community property state. It uses equitable distribution, meaning only the borrowing spouse needs to sign the HELOC documents (though both may need to sign the deed of trust/mortgage if both are on the property title).

Tax Implications

Federal: The standard rule applies — HELOC interest is deductible if funds are used to buy, build, or substantially improve your home, up to $750,000 in combined mortgage debt.

North Dakota state taxes: North Dakota has some of the lowest income tax rates in the nation. As of 2026, the state has been moving toward eliminating its income tax entirely. The current rates range from approximately 0% to 2.5%, with most filers paying well under 2%.

For HELOC interest deductions, North Dakota generally conforms to federal tax law. However, with rates this low, the state-level benefit of a [HELOC interest deduction](/blog/heloc-for-rental-property-renovation) is minimal — you're saving pennies on the dollar compared to states with higher income tax rates.

The real tax benefit for [North Dakota HELOC](/blog/north-dakota-heloc-guide) borrowers is at the federal level.

Property Tax Context

North Dakota's property taxes are moderate:

• Statewide effective rate: Approximately 0.94%
• Cass County (Fargo): Around 1.15%
• Burleigh County (Bismarck): Around 0.95%
• Grand Forks County: Around 1.10%
• Williams County (Williston): Around 0.80%
• Median annual property tax: Approximately $2,400

North Dakota assesses property at 50% of true and full value (9% for residential property, applied to the 50% assessed value). The calculation is complex, but the bottom line is that effective rates are moderate.

Homestead credit: North Dakota offers a homestead property tax credit for qualifying homeowners aged 65+ or disabled, with income limitations. The credit can reduce property taxes by up to 100% depending on income.

Property tax relief programs: The state also has a [property tax exemption](/blog/homestead-exemption-guide) for disabled veterans and a renter's/homeowner's income tax credit for low-income residents.

Moderate property taxes mean your total housing costs stay reasonable even after adding a HELOC payment, giving North Dakota homeowners more financial flexibility than peers in high-tax states.

Frequently Asked Questions

How does the oil market affect HELOC availability in western North Dakota?

Lenders are cautious about properties in oil-dependent areas like Williston and Watford City. Home values in these areas have been volatile, and some lenders may require lower CLTV ratios (70-75% instead of 80-85%), larger equity cushions, or more rigorous appraisals. Local banks like Starion and Bell, which understand these markets, may be more willing to lend than national players.

Can I get a HELOC on a farm or ranch in North Dakota?

It depends on the property. If your home is on a small residential lot (even if it's rural), most lenders will treat it like any other residential property. If it's part of a working farm or ranch with significant acreage, you'll likely need an agricultural lender rather than a traditional HELOC provider. Farm Credit Services of North Dakota or local ag banks may offer home equity products suited to your situation.

What's the minimum HELOC amount available in North Dakota?

Most lenders set minimums between $10,000 and $25,000. Given the lower home values in parts of North Dakota, this minimum can be a meaningful threshold — if your home is worth $150,000 and you owe $120,000, you might only have $10,000-$15,000 in accessible equity, making a HELOC barely worthwhile after costs.

How long does it take to close a HELOC in North Dakota?

Traditional lenders typically close in 3-5 weeks. In rural areas, the appraisal can add time if a local appraiser isn't readily available. Online lenders like Figure may close faster (1-2 weeks) but use automated valuation models that may not work well for unique or rural properties.

Are there alternatives to a HELOC for North Dakota homeowners?

If a HELOC doesn't make sense for your situation, consider a home equity loan (fixed rate, lump sum), a [cash-out refinance](/blog/cash-out-refinance-guide) (if your first mortgage rate is higher than current rates), or a personal loan (no home collateral required, but higher rates). For agricultural properties, Farm Credit may offer land equity loans with favorable terms.

The Bottom Line

North Dakota homeowners benefit from affordable housing, moderate property taxes, and a low (and declining) [state income tax](/blog/states-with-no-income-tax-investing). The HELOC landscape is more limited than in major metro states, but local institutions like Gate City Bank, Bell Bank, and area credit unions offer solid products.

If you're in Fargo or Bismarck, you'll have the most lender options and the smoothest appraisal process. If you're in a rural area or oil country, plan for more time and potentially more conservative terms.

Start with your local bank or credit union — relationships matter more in North Dakota lending than in most states. Then compare against U.S. Bank (which has a physical presence here) and online options like Figure and Third Federal.

With North Dakota's low cost of living and manageable tax burden, a HELOC can be a particularly effective financial tool. Just make sure the numbers work for your specific situation, especially if your property is in a market with limited comparable sales data.

Related Articles

• [Home [Equity Explained](/blog/home-equity-explained): What It Is and How to Build It](/blog/home-equity-explained)
• Property Taxes Explained: How They Work and How to Reduce Them
• [The [Home Appraisal](/blog/appraisal-process-explained) Process Explained: What Every Buyer and Seller Should Know](/blog/appraisal-process-explained)