Last Updated on August 23, 2023 by Hannah Stevens
Mortgage Assistance for Homebuyers in North Dakota
FirstHome Program
The North Dakota Housing Finance Agency (NDHFA) launched the FirstHome Program in an effort to increase homeownership opportunities. This program is for first-time homebuyers who are eligible.
Available Assistance
With the FirstHome Program, the North Dakota Housing Finance Agency offers affordable mortgage loans for first-time homebuyers with low- to moderate-income.
Eligibility Requirements
All applicants for the FirstHome Program must be first-time buyers in order to be eligible. Therefore, these are people who haven’t owned a home in the past three years, and has not purchased a home (including a manufactured house on a permanent foundation). Moreover, they must fall within the income requirements (see below) which vary depending on the county and family size. The applicants must meet the normal credit underwriting standards, and intend to live in the property as their primary residence. Borrowers must also contribute at least $500 from their own money to qualify for the program.
Income Limits
Family of less than 3
- Burleigh/Morton: $96,600
- McKenzie County: $96,800
- Mercer County: $92,200
- Stark County: $100,600
- Ward County: $87,100
- Williams County: $98,900
- All Other Counties: $84,500
Family of 3 or more
- Burleigh/Morton County: $111,090
- McKenzie County: $111,320
- Mercer County: $106,030
- Stark County: $115,690
- Ward County: $100,165
- Williams County: $113,735
- All Other Counties: $97,175
NDHFA Downpayment and Closing Cost Assistance Program
The North Dakota Housing Finance Agency (NDHFA) offers affordable mortgage loans to low-income families. In addition, they offer individuals the Downpayment and Closing cost Assistance (DCA) Program. The NDHFA plans to assist low-income, first-time homebuyers meet their out-of-pocket cash needs with this established program.
This program provides financial assistance to qualified applicants who are interested in purchasing a home. However, they cannot afford the upfront costs, including the down payment, closing costs, and prepaid items needed to get homeownership. These costs can be significant, and people might find themselves stuck in a renters’ trap if they are unable to pay them.
Available Assistance
The DCA Program offers income-eligible applicants up to 3% of total purchase price, or $3,000 in assistance funds, whichever is higher. The funds come as a deferred payment loan with zero interest. However, any other down payment assistance program cannot combine with the DCA.
Eligibility Requirements
Every applicant of the DCA Program must meet certain criteria in order to qualify for assistance. The program is only open to first-time homebuyers. Therefore, those who have owned a house in the past three years are not eligible. They also need to secure their first mortgage through NDHFA, and make a contribution of at least $500 from their cash assets. In addition, borrowers need to meet the program’s income limits. These vary depending on the county and the family size. Borrowers also need to meet credit underwriting standards.
Homebuyer Education
Participants must also finish a homebuyer education course. The certificate of completion must be dated prior to closing a loan.
Property Guidelines
All properties purchased must become the borrower’s primary residence, and be within the program’s maximum purchase price. However, homes within a 100-year floodplains are not eligible.
This is similar to the Down Payment first-time homebuyer assistance programs in North Carolina.
Start Program
The North Dakota Housing Finance Agency (NDHFA) established the Start Program in order to make home buying more affordable for homebuyers with low- or moderate incomes. This program allows income-eligible people to apply for home mortgages with a down payment and closing costs assistance.
This program provides financial assistance to qualified applicants who are interested in purchasing a home. However, they cannot afford the upfront costs, including the down payment, closing costs, and prepaid items needed to get homeownership. These costs can be significant, and people might find themselves stuck in a renters’ trap if they are unable to pay them.
Available Assistance
The Start Program works together with NDHFA’s first mortgages (a FirstHome, HomeAccess, North Dakota Roots, Major Home Improvement, or Targeted Area Loan). The eligible applicants may receive up to 3% of the total purchase price in the form of a credit upon closing. However, any other down payment assistance program cannot combine with this program. Furthermore, Start-assisted first mortgages have a slightly higher interest rate than FirstHome mortgages. However, both 30- and 40-year loan terms are available through the Start program.
Eligibility Requirements
Applicants must meet the requirements for their NDHFA mortgage first mortgage in order to qualify for the Start Program. The program is only available for applicants whose household income does not exceed the set limits. The base of these limits include the location of the home being bought, and family size. Additionally, all applicants must meet the normal credit underwriting standards, and must contribute $500 from their cash assets for the transaction.
Property Guidelines
The purchase price of the house must meet the maximum price limit of the programs. It must also become the applicant’s primary residence.
Are you interested in the First-Time Homebuyer Assistance Programs in Ohio?
