If you get a reverse mortgage North Dakota, you borrow from your home’s equity and skip monthly payments. The business that manages your loan must be licensed under state law. The market here is very small. During the period from October 2025 through August 2026, North Dakota saw just 13 federal loans close, following 12 in fiscal year 2025. The median home value among borrowers stood at $300,000, and the median initial principal limit reached $134,680 with a 6.0% note rate. The initial principal limit is the full amount you can access before fees are subtracted.
The $9,000 Homestead Property Tax Credit and your tax bill
You still have home expenses even if you don't make a monthly mortgage payment. Federal reverse mortgage rules require you to stay current on property taxes and homeowners insurance. The house must also be your primary home, and you have to keep it in good shape. Your loan can default when property taxes are overdue, which is why state tax relief helps you protect your home. Owners who are 65 or older, or who have a permanent and total disability, pay less with North Dakota's Homestead Property Tax Credit.
For a married couple, the age or disability rule only has to be met by 1 spouse. Your household income in the year before assessment can't exceed $70,000, and that total includes your spouse and any dependents. The credit lowers the taxable value of your home. The county estimates your home's worth, which is the true and full value, and the taxable value is the reduced portion you're actually taxed on. A 100% cut applies to incomes of $0 to $40,000, lowering taxable value by as much as $9,000, or true and full value by as much as $200,000. For income in the $40,001 to $70,000 range, you get a 50% reduction, limited to $4,500 off your taxable value or $100,000 off your true and full value. Turn in your form to your local assessor or your county's tax equalization director ahead of March 31 of the assessment year.
What are a servicer's duties under chapter 13-13 of the North Dakota Century Code?
A real estate loan without contractual monthly payments, typically for borrowers older than 55, is what North Dakota Century Code chapter 13-13 calls a reverse mortgage. State law cites age 55, but federal reverse mortgage requirements keep the minimum age at 62. Your loan servicer is the main focus of state law. After closing, the company that runs your account, mails statements and monitors tax and insurance bills is called the servicer. Servicing a reverse mortgage is treated as residential mortgage loan servicing by chapter 13-13. When you're a North Dakota resident, your servicer needs a state residential mortgage loan servicer license, though some are exempt. The application calls for a $400 investigation fee that isn't refundable, plus a $400 license fee.
The North Dakota Department of Financial Institutions and its oversight role
The North Dakota Department of Financial Institutions is responsible for licensing and regulating North Dakota's non-bank reverse mortgage lenders, covering loan originators and servicers. Federally chartered banks and credit unions fall outside its reach and answer instead to their federal regulators. You can check a license or file a servicing complaint straight with the Department of Financial Institutions. A counseling session is required before you apply. There are 0 HUD-approved counseling agencies with an office in North Dakota, so you'll speak with a counselor over the phone. From North Dakota's 13 recent loans, 1 helped buy a home, 0 were refinances and 0 reached the federal ceiling of $1,249,125.
