North Dakota first-time homebuyer grants and down payment assistance (2026)

Three NDHFA mortgages, two 3% add-ons

NDHFA’s products work in layers. The borrower first qualifies for an FHA, VA, USDA Rural Development or conventional loan. The lender then puts it into an NDHFA program and, if needed, adds one assistance option ⁠⁶.

• FirstHome is for buyers who have not owned and lived in a home as their principal residence in the last three years. Owning a rental, a vacation home, vacant land or a mobile home not on a permanent foundation does not count against you. A non-borrowing spouse must also pass the test ⁠⁶.
• HomeAccess gives the same financing and assistance to people who have owned before. One of these must apply: you are a single parent with a dependent child living with you at least half the time; you or your spouse are a veteran discharged under conditions other than dishonorable; or you, your spouse or a dependent are permanently disabled or 65 or older and live in the home ⁠¹. NDHFA’s rate sheet lists HomeAccess as available with the FirstHome products ⁠⁵.
• North Dakota Roots is for past owners and for households over the FirstHome income limit. It has no income or purchase price limit, only the conforming or FHA/VA/USDA loan maximum. It also allows refinances, but Start cannot be used on a refinance ⁠⁷.

Every program requires a $500 out-of-pocket contribution, which can come from your own funds or a gift. Loans must be 30-year terms, closing costs cannot be rolled into the loan, and co-signers are not allowed ⁠¹⁠⁶.

How DCA and Start differ on income and rate

Both add-ons pay a credit equal to exactly 3% of the total mortgage amount, with no rounding. You can use it for the down payment, closing costs and prepaid items. You cannot combine it with any other down payment assistance, and the home must have one or two units, one of them yours ⁠¹⁠⁶. On a $240,000 loan, 3% is $7,200.

DCA is aimed at low-income buyers. It has its own lower county income limits and requires a homebuyer education certificate dated before closing. In return, it carries the same rate as a FirstHome loan with no assistance ⁠³⁠⁶. Start has no separate income chart. It uses the FirstHome or HomeAccess limits, and it is the only add-on allowed with North Dakota Roots, which has no limit. The trade-off is a higher rate ⁠⁶⁠⁷.

NDHFA posts rates daily, and they change often ⁠⁵. The lender either charges you a 1.5% origination fee at the lower rate, or charges no fee and is paid by NDHFA at the higher rate ⁠⁶.

The 96-payment rule for repaying DCA and Start

The 3% is not a grant. It is secured by a second lien, recorded through a Declaration of Lien Interest you sign at closing. You make no separate payment on it ⁠⁶. The lien ends automatically once you have made 96 monthly payments on the first mortgage, which is eight years ⁠⁶.

If you sell, refinance or otherwise transfer the home before then, you owe a pro-rated balance based on how many payments you have made. NDHFA’s own example: a buyer who received $5,000 and sells halfway through the 96 months repays $2,500. If the sale nets less than the balance after paying the real estate agent, NDHFA may collect only what is there. With $500 in proceeds, it takes the $500 and forgives the other $2,000 ⁠⁶.

FirstHome is funded with tax-exempt mortgage revenue bonds, so a federal recapture tax can apply when you sell. NDHFA says most borrowers never owe it. For homes bought after Oct. 1, 2006, it reimburses those who do through form SFN 58429 ⁠¹⁠¹³.

2026 income and price limits by county

For FirstHome and HomeAccess, the limits that took effect June 15, 2026 are the same in every county: $105,730 for a household of one or two and $121,590 for three or more. The price cap is $500,000 for a single-family home, existing or newly built. Existing duplexes can go to $640,000, triplexes to $773,000 and fourplexes to $960,000 ⁠². Three- and four-unit homes cannot use DCA or Start ⁠².

Higher limits apply in Targeted Areas: census tracts 0005.02, 0006.01, 0006.02, 0101.06, 0101.07 and 0101.11 in Cass County, and tract 9409 in Sioux County ⁠¹. There, income can reach $126,876 for one or two people and $170,226 for three or more. A single-family home can cost up to $550,000 ⁠⁴. You can check a tract with the FFIEC geocoder linked from NDHFA’s homeownership page, and NDHFA must approve a targeted-area loan before the application goes ahead ⁠¹.

Income means 12 months of projected gross income for the borrower, spouse (even if not on the note) and any co-borrower, including part-time wages, child support, Social Security and pensions ⁠¹⁠⁶.

DCA uses the lower county table below, effective July 15, 2026 ⁠³:

Scroll the table sideways to see every column.

Grand Forks, Ward (Minot) and the other counties not named use the “All other counties” row. For households larger than eight, ask NDHFA ⁠³.

Credit score, DTI and the participating-lender requirement

NDHFA’s May 2026 lender training says it has no minimum credit score and no debt-to-income or loan-to-value overlays on loans approved by automated underwriting. The lender follows its own rules and those of FHA, VA, USDA or Fannie Mae/Freddie Mac ⁠⁶. Conventional loans need an Approve/Eligible or Accept finding. Otherwise NDHFA must grant a waiver for manual underwriting. FHA, VA and USDA loans can be manually underwritten under their own guidelines ⁠⁶.

Only a lender on NDHFA’s list can make these loans. On Oct. 20, 2026 it included Bell Bank, Gate City Bank, Starion Bank, US Bank and CommunityWorks North Dakota ⁠⁸. Agents trained on the programs are listed as FirstHome Certified Agents ⁠¹.

Homebuyer education. DCA requires a completion certificate dated before closing ⁠¹. NDHFA’s own option is eHome America’s online course, run with CommunityWorks North Dakota and The Village Family Service Center. It costs $100, or $31 with coupon code HOME30. NDHFA also lists the free Freddie Mac CreditSmart Homebuyer U and Fannie Mae HomeView courses. In the Fargo area, Lakes & Prairies Community Action Partnership holds weekday afternoon classes ⁠¹.

City and land trust help in Fargo, Grand Forks and Minot

North Dakota’s largest cities do not run their own down payment funds. The City of Fargo’s down payment assistance page sends buyers to NDHFA’s DCA program and the agency’s Homeownership Division at 800-292-8621 ⁠¹². Searches of official city sites found no city-funded down payment program in Bismarck, Grand Forks or Minot as of Oct. 20, 2026.

The one sizable local option is NDHFA’s Community Land Trust Homebuyer Assistance Program (CHAP), which uses federal HOME funds. It provides up to $70,000 per home in down payment, closing cost and purchase help, set by underwriting, to buyers at or below 80% of area median income ⁠¹⁰. The manual names Grand Forks Community Land Trust as the pilot administrator and adds resale rules for the Minot Area Community Land Trust. You own the house and lease the land. When you sell, the price is capped by a resale formula, and the next buyer must also be low-income, for 5 years if you received under $25,000, 10 years for $25,000-$50,000 and 15 years above $50,000 ⁠¹⁰. Buyers need counseling from a HUD-approved agency and a $500 contribution. The housing payment is generally capped at 31% of income, though FHA, VA, USDA and conforming loans may go higher ⁠¹⁰.

Grand Forks Community Land Trust’s own eligibility page allows incomes up to 120% of area median income for its homes, although CHAP money itself stops at 80%. First-time status is not required. On Oct. 20, 2026 its homes were all under purchase agreement, with more “coming soon.” A pre-application places you on its waiting list, and homes go to the first buyer ready to close ⁠¹¹.

Getting NDHFA assistance in North Dakota, step by step

1. Pick your base program

   If you have not owned a home in three years, start with FirstHome. Past owners who are single parents, veterans, 65 or older or disabled should look at HomeAccess. Everyone else, and anyone over the income limit, can use North Dakota Roots ⁠¹⁠⁷.

2. Choose DCA or Start

   Check your county row in the DCA table. If you qualify, DCA gives the lower rate. If your income is higher, or you are using Roots, Start is the option ⁠³⁠⁵.

3. Take the homebuyer class

   Finish eHome America, CreditSmart or HomeView, and keep a certificate dated before closing. It is required for DCA ⁠¹.

4. Call a participating lender

   Choose one from NDHFA’s list. The lender reserves funds through NDHFA’s website and gives you a Start or DCA disclosure at application ⁠⁶⁠⁸.

5. Gather documents

   Bring pay stubs, a full verification of employment, tax returns and benefit letters for everyone whose income counts. You will sign a Residency and Income Statement covering three years of addresses, plus a Recapture Tax Disclosure ⁠⁶.

6. Wait for the compliance commitment

   NDHFA reviews the file and either asks for more information or issues a Compliance Commitment. Then the lender can close ⁠⁶.

7. Close and keep the lien papers

   At closing you sign the Declaration of Lien Interest for the 3%. After closing, NDHFA buys and services the loan. Keep your records until you have made 96 payments ⁠⁶.

If a lender turns you down, you can apply with another participating lender or call NDHFA’s Homeownership Division at 800-292-8621 ⁠⁸⁠¹². Other states’ programs are compared on the first-time homebuyer grants page, and other North Dakota guides are on the North Dakota page.