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 $121,300 (1-2 person household) or $141,500 (3+ persons) statewide as of 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 $390,000.

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 apply (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 of 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 at or below 80% AMI (e.g., $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 below 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) for first-time buyers; fee applies; combinable with NDHFA loans.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural North Dakota areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.