DSCR Loans in North Dakota

North Dakota's energy-driven economy and landlord-friendly laws offer niche DSCR opportunities in the Northern Plains.

$250K
Median Home Price
$1,200/mo
Median Monthly Rent
1.00x
Est. DSCR at Median
70+
Lenders in Network
Match Me With a North Dakota Specialist

MARKET OVERVIEW

North Dakota DSCR Loan Market

North Dakota offers DSCR investors affordable entry points in a landlord-friendly environment. Fargo is the primary market, benefiting from a growing tech sector, NDSU, and healthcare employment. Bismarck serves as the state capital with government-driven demand. The oil economy in western ND (Williston Basin) creates cyclical opportunities. Property taxes are moderate at 0.98%. The state's small population means limited rental supply in growing areas, which supports occupancy rates.

LANDLORD-FRIENDLY STATE

Top Investor Cities

  • Fargo
  • Bismarck
  • Grand Forks
Effective Property Tax Rate
0.98%

Monthly tax on $250,000 property: $204/mo

REQUIREMENTS

DSCR Loan Requirements in North Dakota

Licensing & Regulatory

Loans in North Dakota are originated by [Broker A], NMLS# [XXXXXX], licensed in North Dakota.

All lending decisions and terms are determined solely by the matched broker and their wholesale lending partners.

Common Property Types

  • Single-Family Rentals
  • Small Multifamily (2-4 Units)

Down Payment & LTV

  • Standard DSCR: 20% minimum down (80% LTV)
  • No-Ratio DSCR: 30% minimum down (70% LTV)
  • 30%+ down unlocks No-Ratio DSCR programs and broader lender access

Appraisal & Rent Schedule

  • Form 1007 rent schedule required with appraisal
  • Appraisal estimates market rent for DSCR calculation
  • STR properties: AirDNA projected income accepted

DEAL EXAMPLE

Sample DSCR Deal in Fargo, North Dakota

Single-Family Rental

Fargo, North Dakota

DSCR
Purchase Price $265,000
Down Payment 25% ($66,250)
Loan Amount $198,750
Loan Type 30-Year Fixed DSCR

Monthly Breakdown

Principal & Interest $1,322
Property Tax $216
Insurance $155
Total PITIA $1,693
Monthly Rent $1,400
DSCR Ratio
0.99x
Monthly Cash Flow
+$207
Close Time
24 days
DSCR = $1,400 ÷ $1,693 = 0.99x

This borrower closed in 24 days with no income verification, no tax returns, and no employment check.

Results may vary. This is a representative example, not a guarantee of future performance.

This deal example is for illustrative purposes only and is based on representative scenarios across our broker network. Actual loan terms, approval, and closing depend on your full credit profile, property details, appraisal, and the matched lender's specific guidelines. This is not a loan offer or commitment to lend.

FREQUENTLY ASKED

DSCR Loan Questions for North Dakota Investors

DSCR loans in North Dakota require a minimum 660 credit score, 20% minimum down payment, and non-owner-occupied status. No income docs or tax returns needed.

Rates start from 5.99% for 740+ FICO with 35%+ down. Most ND investors see rates between 6.50% and 7.75%.

Yes. STR demand in North Dakota is limited but exists in tourism areas like Theodore Roosevelt National Park vicinity and during events. Our STR DSCR program allows projected income to qualify.

North Dakota's effective property tax rate is approximately 0.98%, close to the national average. On a $265,000 property, that's about $216/month.

Yes. DSCR loans have no owner-occupancy requirement. Fargo has property management options to support remote investors.

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Loans in North Dakota are originated by [Broker A], NMLS# [XXXXXX], licensed in North Dakota. is not affiliated with DSCRBroker.com except as a participating broker in our matching network. All lending decisions and terms are determined solely by the matched broker and their wholesale lending partners.