2025 · North Dakota

How investors finance real estate in North Dakota

In 2025, 943 investment-property loans worth $189M were originated on single-family 1-4 unit homes in North Dakota. Here's how those terms compared to the rest of the country.

Investor rate premium

53 bps

U.S. median: 76 bps

Denial rate

5.1%

U.S. median: 17.5%

DSCR / business-purpose

62%

U.S. median: 72%

Median LTV

75%

U.S. median: 74%

Since 2024 in North Dakota

Rate premium

88 bps → 53 bps

-35 bps

Investor loans

779 → 943

+21.1%

Denial rate

5.8% → 5.1%

-0.7 pts

DSCR / business-purpose

69% → 62%

-6.5 pts

What the numbers say

Investors in North Dakota borrowed at a median rate of 6.875%, versus 6.35% for owner-occupants — a 53 bps premium that ranks 49th of 51 states.

Their applications were denied 5.1% of the time. The leading reasons for denial were debt-to-income ratio, collateral, credit history.

62% of investor loans were business- or commercial-purpose — the category that includes DSCR and LLC-held loans — and 6% were cash-out refinances. The typical loan-to-value was 75%, implying about 25% down.

Frequently asked questions

How much more do investors pay for a mortgage in North Dakota?

In 2025, the median investment-property loan in North Dakota carried a rate of 6.875% versus 6.35% for an owner-occupant — a premium of 53 bps. That ranks 49th of 51 states (1 = highest premium).

What share of investor loan applications are denied in North Dakota?

5.1% of investment-property applications were denied in North Dakota in 2025, the 51st-highest denial rate among the 51 states. The most common denial reasons were debt-to-income ratio, collateral, credit history.

How common are DSCR and business-purpose investor loans in North Dakota?

62% of investor loans in North Dakota were flagged as primarily business or commercial purpose — the bucket that includes DSCR and LLC-held loans (42nd of 51). The median loan-to-value was 75%.

Run the numbers for a deal here

DSCR Loan Qualifier Mortgage / DSCR Payment All 50 states ranked How we built this

Source: CFPB / FFIEC HMDA combined Modified LAR (loan-level public dataset, early release), 2025. Single-family 1-4 unit, site-built loans; financed purchases only.