If you’re a first-time homebuyer looking to buy in North Dakota, you may just be eligible for financial help from the state. The North Dakota Housing Finance Agency (NDHFA) assists aspiring homeowners with obtaining affordable mortgages as well as helping them to pay their down payments and closing costs.
North Dakota housing market statistics
- Median home sales price, as of Jan. 2025 (Zillow): $281,317
- Median down payment, as of Jan. 2025 (ATTOM): $26,500
- Most affordable counties, as of Jan. 2025 (ATTOM): Adams, Burke, Divide, Foster, Logan, McHenry, McIntosh, Wells
North Dakota first-time homebuyer programs
NDHFA FirstHome program
The NDHFA’s FirstHome program was designed to help low- and moderate-income families purchase their first homes. It offers affordable mortgages in the form of competitive conventional, FHA, VA and USDA financing to eligible first-time homebuyers who meet certain criteria.
NDHFA HomeAccess program
The NDHFA’s HomeAccess program isn’t solely for first-time homebuyers, but like the FirstHome program, it comes with low rates and down payment assistance. However, this program is geared toward specific groups:
- A single parent with at least one dependent child who lives with the parent at least 50 percent of the time
- An honorably discharged veteran (either the borrower or the borrower’s spouse)
- A borrower either living with a permanent disability, or who has a dependent or spouse living with a permanent disability who also lives with the borrower
- A borrower aged 65 years or older, or who has a dependent or spouse aged 65 years or older who also lives with the borrower
To be eligible, you must also meet income and purchase price limits, which are the same as the FirstHome program.
NDHFA North Dakota Roots
The NDHFA’s North Dakota Roots loan program can be an option for first-time homebuyers whose incomes exceed the FirstHome program’s limits. Originally geared toward people relocating to the Peace Garden state, it offers either a below-market interest rate loan or a market-rate loan that includes down payment and closing costs assistance. The program sets no purchase price limits of its own, but its loans are subject to the Federal Housing Finance Agency conforming loan limits that most conventional mortgages adhere to.
NDHFA Targeted Area Loan
If you’re interested in buying a home in Cass or Sioux County, you could also qualify for a low-interest rate Targeted Area Loan through the NDHFA.
You don’t need to be a first-time homebuyer to take advantage of this loan, though you’ll need to meet income and purchase price limits. These limits are higher than the limits for the FirstHome and HomeAccess programs, and the home purchase price can be as high as $588,104 for a single-family home.
North Dakota down payment assistance
The NDHFA offers two main down payment assistance programs, both of which can be paired with an NDHFA loan. Note that if you’re buying a three- or four-unit property, you won’t be eligible for this assistance.
NDHFA Down Payment and Closing Cost Assistance (DCA)
To be eligible for NDHFA’s Down Payment and Closing Cost Assistance (DCA), you must meet the program’s income limits and complete a homebuyer education course before closing. In addition, you can only buy a single-family or two-unit home (duplex). If you’re buying a duplex, you must occupy one of the units as your primary residence.
NDHFA Start
The NDHFA’s Start program also offers down payment and closing cost assistance. Like the DCA program, you must be buying either a single-family home or a duplex that you intend to occupy.
Other first-time homebuyer loan programs
Along with North Dakota state programs, there are other national loans that first-time homebuyers can consider:
- FHA loans: These loans, which require a 3.5 percent down payment and a minimum 580 credit score, are backed by the U.S. Department of Housing and Urban Development.
- VA loans: Eligible veterans, active-duty military members and surviving spouses may qualify for a loan guaranteed by the U.S. Department of Veterans Affairs. Some advantages of these loans include a $0 down-payment requirement and no need for private mortgage insurance (PMI). VA loan rates also tend to be lower than those for conventional, fixed-rate mortgages.
- USDA loans: Sometimes referred to as rural development or RD loans, USDA loans are also available for properties located in designated rural areas. Check your property’s eligibility for this kind of financing on the USDA website.
Fannie Mae and Freddie Mac — two government-sponsored enterprises — also back conventional loans with as low as 3 percent down.
Get started
You can get the most up-to-date information on North Dakota’s first-time homebuyer programs through the North Dakota Housing Finance Agency’s website. There, you’ll find a list of mortgage lenders who can help you determine what you might qualify for.
Be sure to shop around to find the best mortgage lender, and also take the time to compare mortgage rates in North Dakota before committing to an offer. You’ll also want to familiarize yourself with the ongoing costs of homeownership, like homeowners insurance.
For more on first-time homebuyer programs and others, head over to Bankrate’s guide to first-time homebuyer loans.
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