Important Steps

General Program Requirements

  • All of our programs require a $500 out-of-pocket cash investment.
  • You must occupy the home as your principal residence.
  • Household income for our FirstHome and HomeAccess programs must be below a specific income limit according to family size, county of residence, and program requirements. We must count the income of the borrower, spouse, and co-borrower(s). This includes all income sources, including but not limited to, full and part-time employment wages, self-employed income, child support, social security benefits, and pension/retirement income. If household income exceeds the limits of these programs, borrowers may qualify for assistance through NDHFA’s North Dakota Root’s program.

NDHFA's Loan Programs

Down Payment and Closing Cost Assistance

You must not have owned a home as your principle residence within the last three years (including a manufactured home on a permanent foundation). 

Looking for Down Payment and Closing Cost Assistance? You can use DCA or Start!

To qualify, one of the following must describe the households:

  • The mortgagor must be a single-parent with at least one dependent child residing in the home 50 percent of the time.
  • The mortgagor or the mortgagor’s spouse must have served in the active military, naval or air service and been discharged or released from active duty under conditions other than dishonorable.
  • The mortgagor, mortgagor’s spouse or a dependent(s) must be permanently disabled or age 65 or older and reside in the home.
  • You must meet income and purchase price limits.

Looking for Down Payment and Closing Cost Assistance? You can use DCA or Start!

  • The maximum Roots loan amount must comply with the current Fannie Mae/Freddie Mac conforming loan amount or the limits of the applicable loan insurer/guarantor. There are no income or purchase price limits. 

Looking for Down Payment and Closing Cost Assistance? You can use Start!

The Internal Revenue Code requires that NDHFA, as an issuer of tax-exempt mortgage revenue bonds, set aside a portion of the proceeds of a bond issue for up to one year for reduced interest rate mortgage loans in Targeted Areas of North Dakota.

To determine if a home is in a Targeted Area, search by the address. Type in the address of the property, click search and the corresponding census tract will appear in the information listed. To qualify, the Census Tract number must match one of the tract numbers identified below.

Cass Census Tracts 0005.02,0006.01,0006.02, 0101.06, 0101.07, 0101.11
Sioux Census Tract 9409

Looking for Down Payment and Closing Cost Assistance? You can use DCA or Start!

Before proceeding, NDHFA’s homeownership division will verify the property qualification and the availability of the program proceeds and then provide authorization to proceed with the loan application.

Through the DCA program, NDHFA provides low-income buyers with affordable mortgage loans that include down payment and closing cost assistance. Amount of assistance equals three percent of the first mortgage loan amount in the form of a credit towards your out-of-pocket cash requirement. This can be used for downpayment, closing costs and prepaid items.  

DCA cannot be used in conjunction with any other down payment assistance programs. 

  • You must meet income limits, which vary based on county and family size.
  • Only one to two-unit properties (one unit must be occupied by borrower).
  • You must complete a homebuyer education course and receive a certificate of completion that is dated before loan closing.

Through the Start Program, NDHFA provides low- to moderate-income buyers with affordable mortgage loans that include down payment and closing cost assistance. Amount of assistance equals three percent of the first mortgage loan amount in the form of a credit towards your out-of-pocket cash requirement. This can be used for downpayment, closing costs and prepaid items.  

  • Start cannot be used in conjunction with any other down payment assistance programs.
  • Start can only be used on one to two-unit properties (one unit must be occupied by borrower).

Homebuyer Education

Calculators

NDHFA, CommunityWorks North Dakota, and The Village Family Service Center have partnered to provide individuals and families with access to eHome America’s online Homebuyer Education program.

The full course is available online and can be completed at your convenience. You’ll learn about the home buying process from start to finish – what you can afford, how to choose the right house, lender and mortgage, and what financial assistance may be available to you.

The cost is $99 per registration. To receive a discount that will lower the fee to $30, use the coupon code HOME30 when you register. Register at www.ehomeamerica.org/ndhfa

For those who are American Indian or Alaska Native and interested in one-on-one credit counseling, homebuyer education, and/or money management coaching, these resources to you for no cost. More information

 

https://creditsmart.freddiemac.com/paths/homebuyer-u/ 

A free class for first-time homebuyers.

https://www.fanniemae.com/education

F-M Homebuyer Class

The F-M Homebuyer Class is a 2-day evening class from 5:00-9:00 PM.

http://f-mhomebuyerclass.com/

CAPLP-Lakes & Prairies Community Action Partnership Homebuyer Education Class

Weekday afternoons from 1:00-5:30
More information

These calculators are intended to provide guidance and financial estimates. Be sure to include all your income sources: full and part-time employment wages, self-employed income, child support, social security benefits, and pension/retirement income.

http://myhome.freddiemac.com/resources/calculators.html

Be sure to reach out to a participating lender to confirm program qualifications.  

FAQs

To have NDHFA finance a mortgage loan, potential borrowers should apply through a lender that originates mortgage loans on the agency’s behalf. The lender handles the loan application and all the work it takes to originate and close a mortgage loan. The lender then sells the mortgage loan to NDHFA.

Yes, NDHFA’s FirstHome and HomeAccess programs do have income limits that vary depending on family size and the location of the home purchased. Households whose income exceeds the limits of these programs may qualify for assistance through our North Dakota Roots program.

Every situation is different. If you have questions about your credit score and your ability to get a loan, contact one of NDHFA’s participating lenders.

You will make your monthly mortgage payments directly to the local lender or NDHFA.

Most borrowers will not pay any Recapture Tax. If they do, NDHFA will reimburse the borrower if the home was purchased after October 1, 2006.