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Arkansas vs North Dakota:
Mortgage & Housing Costs

Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Arkansas and North Dakota. Updated for 2026.

MetricArkansasNorth Dakota
Median Home Price$195K$255K
Property Tax Rate0.62%0.98%
Avg Closing Costs$3K$3K
Closing Cost %1.5%1.1%
Transfer Tax0.33%None
Homeowners Insurance$2,500/yr$2,100/yr
First-Time Buyer Program
ADFA Down Payment Assistance
Up to $15,000 DPA
NDHFA FirstHome
DCA up to $14,000
Verdict

North Dakota wins 4 of 6 cost categories, making it the more affordable state for homebuyers overall. However, Arkansas has a lower total cost when combining home price, closing costs, and insurance. Both states offer first-time buyer programs — explore the state pages for full details.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.

Arkansas
Home Price$195,000
Down Payment (10%)$19,500
Loan Amount$175,500
Monthly P&I$1,109
Monthly Property Tax$101
Monthly Insurance$208
Monthly PMI$73
Total PITI$1,491/mo
Annual property tax: $1,209
North Dakota
Home Price$255,000
Down Payment (10%)$25,500
Loan Amount$229,500
Monthly P&I$1,451
Monthly Property Tax$208
Monthly Insurance$175
Monthly PMI$96
Total PITI$1,929/mo
Annual property tax: $2,499

Buying in Arkansas saves you approximately $438/month ($5,256/year) compared to North Dakota, based on median home prices with identical loan terms.

Which State Is Right for You?

Arkansas offers meaningfully lower home prices than North Dakota, with median prices running 24% less ($60K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of North Dakota may find Arkansas far more accessible, particularly when combined with local down payment assistance programs.

Arkansas has a moderate property tax advantage at 0.62% versus North Dakota's 0.98%. While the rate gap of 0.36% may seem small, it translates to an annual difference of approximately $1,290 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $10K in savings.

Both states offer down payment assistance for first-time buyers. Arkansas's ADFA Down Payment Assistance provides Up to $15,000 DPA, while North Dakota's NDHFA FirstHome offers DCA up to $14,000. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.

Key Takeaway

The bottom line: Arkansas and North Dakota are broadly similar in housing costs, with only $438/month separating them in total PITI payments. In cases like this, your decision should be driven by lifestyle preferences — job opportunities, climate, proximity to family, and quality of life — rather than pure cost savings. Either state offers a reasonable path to homeownership.

Compare Other States

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