First-Time Home Buyer Programs in North Dakota

North Dakota Housing Finance Agency (NDHFA) Programs:

FirstHome Program:

Eligibility: Targets first‑time homebuyers (no homeownership in the past three years) or buyers in targeted areas.
Offerings: Provides a 30‑year fixed‑rate mortgage (FHA, VA, USDA, or conventional) with below‑market rates; can be paired with down payment assistance.
Requirements:

• Income must not exceed $93,500 (1‑2 person households) or $110,000 (3+ persons), effective June 1, 2025.
• Minimum credit score of 620 (varies by loan type).
• Debt‑to‑income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course required.
• Purchase price limit of $481,176 for single‑family homes; higher limits apply for duplexes through four‑plexes.

Start Program:

Benefits: Offers up to 3% of the first‑mortgage amount (e.g., ≈$6,000 on a $200,000 loan) as a 0% interest deferred loan (repayable upon sale, refinance, or after 30 years) for down payment and closing costs.
Eligibility: Must use an NDHFA first mortgage; income and purchase price limits same as FirstHome.

North Dakota Roots:

Description: Provides a 30‑year fixed‑rate mortgage with reduced rates or up to 4% assistance (deferred loan) for first‑time buyers earning below 80% AMI or relocating to North Dakota.
Requirements: Income capped at 80% AMI (e.g., ≈$74,000 for a family of four in Cass County); must pair with an NDHFA mortgage; credit score ≥640.

Local Programs:

Fargo

Fargo First‑Time Homebuyer Program: Offers up to $15,000 as a deferred loan (0% interest, due upon sale or refinance) for down payment and closing costs; income must be ≤80% AMI (≈$69,700 for a family of four).

Bismarck

Bismarck Down Payment Assistance: Provides up to $12,000 as a forgivable loan (forgiven after 10 years) for down payment and closing costs; income capped at 80% AMI; targets low‑income areas.

Grand Forks

Grand Forks Homebuyer Assistance: Offers up to $10,000 as a 0% interest deferred loan (repayable upon sale) for down payment and closing costs; income must be ≤80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 30% of annual mortgage interest (max $2,000 yearly); fee applies; combinable with NDHFA loans.
• FHA Loans: 3.5% down payment minimum; credit scores ≥580 (10% down if below 580).
• USDA Loans: Zero‑down payment for rural ND properties; income limits apply.
• VA Loans: Zero‑down payment for eligible veterans or active military.