HELOC Loans in North Dakota

Home Equity Line of Credit (HELOC)

North Dakota homeowners can access flexible financing through a HELOC (home equity line of credit), turning built-up property value into a revolving line of credit. Whether you're remodeling in Fargo, consolidating debt in Bismarck, or covering college expenses in Grand Forks, a HELOC provides borrowing flexibility during a multi-year draw period. These loans typically carry variable interest rates and require 15%–20% equity and a credit score of 620 or higher. If you prefer a one-time payout with stable monthly payments, a home equity loan may be a better fit. Lenders in North Dakota include community banks, credit unions, and online providers offering competitive terms.

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How to qualify

To obtain a quote, we will need the following information:

Property Value and

 Purchase Price


Down Payment

Amount


Credit Score

 Asset Types

  • Single Family Homes
  • Townhomes
  • Condos
  • 2 - 4 Units (Duplex, Triplex, Quadplex)
  • Multi-Family: 5 - 8 Units
  • Mixed-Use: 2 - 8 Units
  • Multi-Family: 9+ Unit


Loan Terms

  • Loan Sizes: $100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
  • Purchase LTV: Up to 85%
  • Rate & Term Refinance LTV: Up to 80% 
  • Cash Out Refinance LTV: Up to 80%
  • Amortization: 30 Year % 40 Year Amortization Options Available
  • Term Lengths: 5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
  • Floor Rate: 5.50% (subject to change daily due to market volatility)
  • Full Recourse with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
  • DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
  • Vesting: Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
  • Average Time to Close: 14 to 35 days

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Frequently Asked Questions

What is a HELOC and how does it differ from a home equity loan?

A HELOC in North Dakota is a revolving line of credit secured by your home’s equity. You can draw funds as needed during the draw period and repay over time. A home equity loan gives you a lump sum up front with fixed monthly payments and interest. Choose a HELOC for phased or ongoing expenses. Choose a home equity loan for larger, one-time costs. Your choice depends on your funding needs and repayment preferences.

How do HELOC rates work and what affects the interest rate?

HELOC rates in North Dakota are typically variable and based on the prime rate. Your individual rate depends on your credit score, loan-to-value ratio, income, and lender-specific policies. Credit unions in North Dakota may offer lower fees, fixed-rate conversion options, or autopay discounts. Always compare at least three offers to find the right balance of rate, term, and flexibility.

Can I qualify for a home equity loan in North Dakota with low credit?

Yes, North Dakota homeowners with lower credit may qualify for a home equity loan if they have strong equity and verifiable income. While most lenders prefer a score above 620, some will consider scores in the 580–620 range with additional documentation.Expect slightly higher interest rates and a more detailed underwriting process. Local banks and credit unions may be more flexible than national lenders when evaluating unique borrower profiles.

How much equity do I need in my home to get a HELOC?

In North Dakota, most lenders require 15%–20% equity to approve a HELOC. This equates to a loan-to-value ratio of 80%–85% or better.Lenders also consider your income, credit history, and existing debts. Homes in growing areas like Cass County may offer higher loan limits due to property appreciation.

Are home equity loans in North Dakota better for large expenses?

Yes, home equity loans in North Dakota are ideal for large, one-time expenses such as home improvements, debt consolidation, or medical bills. These loans provide a fixed rate and predictable monthly payments. If your expenses will occur over time or vary in amount, a HELOC may offer more flexibility. Choose based on your cash flow, timeline, and repayment comfort level.

What are typical equity rates and loan terms in North Dakota?

In North Dakota, HELOC APRs typically range from 7% to 10% depending on credit, equity, and lender. These loans usually include a 10-year draw period and a 10- to 20-year repayment term.Home equity loans come with fixed interest rates and terms from 5 to 30 years. North Dakota lenders may offer closing cost assistance, rate locks, or member discounts through credit unions. Compare terms carefully to get the best deal.

Looking at neighboring states? Compare HELOC loan programs in Minnesota , South Dakota , and Montana...