4 Best Land and Lot Loans in North Dakota


North Dakota land loans give you a way to finance land on which you can build your own home.

Key Terms

  • Land loans offer a more affordable entry point to homeownership.
  • Land loans, or “lot” loans, have no restrictions on when you build a home.
  • These real estate loans don’t require insurance, saving borrowers money each month.

Friendly neighbors, ranchers, astonishing wildlife and natural settings, and a great quality of life— what isn’t there to like about North Dakota. It’s no wonder that many want to live in or build a vacation home in the state’s 68,996 square miles of land (according to the United States Census Bureau.) 

While home prices are going up, there is an easy way to own a home or second home in North Dakota. Many are choosing instead to take out land loans and secure the parcel of land they want, then build their ideal home over time. With the value per acre in North Dakota at around $2517.39 per the New Estimates of Value of Land of the United States, many may find that even several acres of land are pretty affordable in the state. 

Plus, once you have built equity in your land, it can sometimes serve as collateral for construction loans in North Dakota, which you can use to help finance a project. A new home or vacation property doesn’t have to be out of reach. 

Show Me Lenders

How land loans work in North Dakota

Land loans help you finance the purchase of raw, unimproved and improved land, depending on your preference. Unlike ag loans, “lot” loans (as they are sometimes called) don’t require that you use your land for a specific purpose. 

If you do plan to build on your land, however, that can help with the approval and application process in some cases. Lenders will see that as improving the quality of the land and mitigating some of their risk in making the loan. 

While looking for property in North Dakota, keep in mind that not every property is ready for a home. Raw land is land that is completely undeveloped and has none of the infrastructure needed for a home. Unimproved land and improved land have some infrastructure and everything needed for a home build, respectively.  

Get Quotes for Your Land Loan

4 Best North Dakota land loan lenders

If you’re ready to learn more about the best land loan lenders in North Dakota, here are the top options we’ve found through our research.

1. Dakota Community Bank & Trust

Since 1940, Dakota Community Bank & Trust has provided a wide range of loan and banking services to those in North Dakota. This locally-owned hometown bank aims to provide the most affordable options for ag loans and farm loans, including mortgage loans and mortgage credit, business loans, rural development loans, Farmer Mac, and FDA Guaranteed.

We reached out to Dakota Community Bank & Trust to discuss land loan details, which you can read about below:

  • Agriculture loans available
  • Farm land loans available for farm land purchases
  • Rural development loans available
  • Farmer Mac / FSA Guaranteed Loans available

When you’re ready to connect with a loan officer, use our form to quickly match with land and lot loan programs based on your specific circumstances.

2. Starion Bank

Starion Bank started as the First National bank of Oakes in 1886 and continued to grow until all of the branches combined were formed into a unit now called Starion Bank in 2003. Serving North Dakota and Wyoming with services like USDA rural development loans, construction and bridge loans.

To get you the best information, we contacted Starion Bank for more details on their land loans and here are the key features and terms:

  • No origination fee
  • Fixed annual percentage interest rates are available for new lot purchases (consumer purpose only) in North Dakota, Minnesota and Wisconsin based on a 1-year, interest-only term.
  • 5% minimum down payment required.
  • Maximum 12-month term with interest-only payments.

 When you’re ready to connect with a loan officer, use our form to quickly match with land and lot loan programs based on your specific circumstances.

3. First Community Credit

Named a Top 50 Member Business Lending Credit Union, First Community Credit was first established in 19396 in Jamestown, North Dakota. This member-owned organization has more than 45,000 members across Minnesota and North Dakota, offering a range of AG loans, including home equity line of credit loans, real estate and farm operating loans.

We asked First Community Credit for more details on their vacant land loan product and here is what they said:

  • Competitive rates for home construction project
  • Available for primary residence or second home construction
  • Can roll remaining loan amount into permanent mortgage at end of construction
  • Mainly prefers working with people who intend to build a primary or secondary home

When you’re ready to connect with a loan officer, use our form to quickly match with land and lot loan programs based on your specific circumstances.

4. American Land & Capital

American Land and Capital is a financial institution that provides construction mortgage products and home equity loans for those in Bismarck and Minot, South Dakota, as well as North Dakota. American Land and Capital is based in Minnesota and offers a number of products that can be used for new construction, rehabbing properties, and lot and land development.

We reached out to American Land & Capital to discuss land loan details, which you can read about below:

  • Asset-based loans
  • Creative funding solutions
  • Mainly focuses on land loans related to construction projects

When you’re ready to connect with a loan officer to determine eligibility, use our form to quickly match with land and lot loan programs based on your specific circumstances.

Is a land loan in North Dakota right for me?

Are land loans in North Dakota a good alternative for you? It is based largely on your long-term objectives or your current situation. A land loan may not be the best option if you are looking for a home to move into right away. However, if you have a property in mind and wish to secure the lot and can then take time to create and build your home, one of these financial products may be perfect for you.

You should be aware that you may need to make a down payment on the loan. Lenders sometimes ask for down payments of 25 to 30 percent on land loans. With the cost of land in North Dakota as affordable as it is right now, however, it is likely that a down payment on a lot loan will be much more manageable than a down payment on a new or modern home. 

If you’re looking to explore land and lot loans in other states, check out our national overview of land loans as a starting point in your search.

Find a Land Loan Specialist

Joshua Holt

Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.

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