Bismarck's rental market runs on steady paychecks: state government, two large hospital systems, colleges and the energy companies that serve western North Dakota. That kind of tenant base suits a loan that qualifies on rent.
In short: LendingStreet makes DSCR loans on 1-8 unit rentals in Bismarck, Mandan and Lincoln, qualifying on the property's rent rather than your personal income. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV, the standard minimum DSCR is 1.0x and the minimum credit score is 620. No W-2s or tax returns are required, and LLC borrowers are standard.
Near the Capitol, the Cathedral District and the older blocks around downtown have homes from the early 1900s through the 1940s, some converted to two or three units. Tenants include state employees, legislative staff and workers at Sanford Health and CHI St. Alexius Health, both close to downtown.
North and northeast Bismarck hold most of the newer single-family homes, twin homes and townhomes built over the last twenty years. South Bismarck, closer to the river and the University of Mary, mixes 1960s and 1970s ramblers with newer subdivisions. Across the Missouri, Mandan has lower prices and a large stock of older homes and small multi-units, and Lincoln, southeast of Bismarck, offers newer, moderately priced houses.
| Area | Typical rentals | Main question for the DSCR |
|---|---|---|
| Cathedral District and downtown | Older singles, converted two- and three-units | Legal unit count; older systems |
| North and northeast Bismarck | Newer singles, twin homes, townhomes | Special assessments on newer lots |
| South Bismarck | Ramblers, split-levels, small multis | Flood zone status near the river |
| Mandan and Lincoln | Older homes, duplexes; newer homes in Lincoln | Lower prices and the $150,000 minimum |
We divide the monthly rent by the full monthly payment, which includes principal and interest, property taxes, insurance and any association dues. A 1.0x ratio means the rent covers that payment. The loan is approved on this ratio, your credit and your reserves, with no income documents.
Purchases go up to 80% LTV, cash-out refinances up to 75%, and rate-and-term refinances up to 80% on some programs. On a duplex, triplex or fourplex we add the rent from every unit. If the ratio comes in slightly under 1.0x, sub-1.0 DSCR programs exist for some files.
Thirty-year terms are available, and the loan can close in your LLC, with you signing for the loan personally.
Reserves are part of the review, so plan to keep several months of payments in the bank after closing. Older buildings near downtown can need a boiler, sewer line or roof with little warning.
This example is illustrative and not a quote. An investor buys a 1980s side-by-side duplex in Mandan for $360,000. Each two-bedroom unit with a single garage rents for $1,300, so qualifying rent is $2,600 a month. Taxes, including the annual specials installment, are budgeted at $430 a month and insurance at $150.
At 75% LTV the loan is $270,000. Estimated principal and interest on a 30-year term is about $1,888, the full payment is about $2,468 and DSCR is about 1.05x. A similar duplex in north Bismarck would cost more, and many investors buy in Mandan for exactly this reason.
| Item | Amount |
|---|---|
| Purchase price | $360,000 |
| Loan at 75% LTV | $270,000 |
| Estimated principal and interest | $1,888 |
| Taxes and specials | $430 |
| Insurance | $150 |
| Total payment | $2,468 |
| Rent, two units | $2,600 |
| DSCR | 1.05x |
North Dakota values property every year. For residential property, assessed value is half of market value and taxable value is 9% of assessed value, with local mill levies applied to that figure. Bismarck sits in Burleigh County and Mandan in Morton County, and each city, school district and park district adds its own levy, so bills differ across the river.
Like other North Dakota cities, Bismarck and Mandan use special assessments to pay for streets and utilities, billed with the property tax statement over many years. Newer subdivisions in north Bismarck and Lincoln often carry larger installments. Relief for primary residences does not apply to rentals, so do not rely on the seller's bill. Confirm current figures with the county.
In 2011, high water on the Missouri River flooded low-lying parts of south Bismarck and Mandan, and the Heart River can also rise in Mandan. Some properties near both rivers are in mapped flood zones where flood insurance is required. Check the FEMA map and any elevation certificate before you make an offer, because flood premiums are part of your DSCR payment.
Bismarck's rental demand is steady, but it has its own rhythm. The North Dakota Legislature meets in Bismarck in odd-numbered years, roughly January through April, and lawmakers, lobbyists and staff look for furnished housing during the session. Bismarck State College and the University of Mary add student demand, and energy activity in western North Dakota brings workers through the city.
Most loans are underwritten on 12-month leases. If you plan to rent furnished units on shorter terms, check the city's rules and talk to us about how your program treats that income.
North Dakota generally limits security deposits to one month's rent, with some exceptions, so confirm current rules before setting terms. Keep signed leases and payment records for every unit, since they support both the DSCR and a future refinance. Title work in North Dakota often runs through a licensed abstracter, and the state does not charge a real estate transfer tax.
Bismarck's rental calendar favors summer moves, when families relocate and students arrive. Timing lease renewals for late spring and summer makes vacancies easier to fill.
Send the address, price, rents and the latest tax statement with specials. We will run the ratio at a few loan amounts and send back options. Our investor loans are business-purpose loans on non-owner-occupied property. Call (877) 298-1001 or fill out the form below.
Yes. Mandan, Bismarck and Lincoln are all eligible for 1-8 unit rentals that meet the program.
The loan must be at least $150,000, so lower-priced homes may not fit alone. Some investors buy a duplex or combine properties instead.
Yes. The annual installment is part of the tax payment and lowers the DSCR.
Most loans use 12-month lease income. Ask how your program treats furnished or shorter-term rent.
Only in mapped flood zones, but check every property near the Missouri and Heart rivers.
No state real estate transfer tax applies. Title, abstract and recording costs still do.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
No. The loan qualifies on rent, credit and reserves.
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