Down Payment Path

Down Payment Assistance Programs in North Dakota

North Dakota offers a variety of down payment assistance programs to help homebuyers overcome upfront costs. These programs are accessible to both first-time and repeat buyers, ensuring that more residents can achieve their homeownership goals across the Peace Garden State.

NDHFA Start Program

The North Dakota Housing Finance Agency (NDHFA) Start Program provides financial assistance to help buyers with down payments and closing costs.

  • Offers up to 3% of the first mortgage loan amount as assistance.
  • Provided as a second mortgage with deferred payments and no interest.
  • Pairs with NDHFA's affordable first mortgage products, including FHA, VA, USDA, and conventional loans.
  • Open to buyers meeting income and purchase price limits.

HomeAccess Program

The HomeAccess Program offers additional support for specific groups of buyers, such as single parents, veterans, and households with disabled family members.

  • Provides down payment assistance in the form of a deferred loan.
  • Pairs with affordable fixed-rate mortgage products through NDHFA.
  • Eligibility requirements are designed to accommodate a broad range of buyers.

USDA Rural Development Loans

For buyers in rural North Dakota, the USDA Rural Development Loan offers affordable financing without a down payment requirement.

  • Open to low- and moderate-income buyers in USDA-eligible rural areas.
  • Features flexible credit requirements and competitive interest rates.
  • Can be combined with NDHFA assistance programs to cover closing costs.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) program provides significant tax benefits to reduce the overall cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their annual mortgage interest.
  • Can be paired with NDHFA loans and down payment assistance programs.
  • Income and purchase price limits apply but are set to accommodate many buyers.

Local Assistance Programs

Several cities and counties in North Dakota provide additional support for homebuyers through grants or low-interest loans for down payment and closing costs.

  • Programs in areas like Fargo, Bismarck, and Grand Forks often provide targeted assistance for buyers in revitalization zones or specific professions, such as educators and first responders.
  • Eligibility criteria and assistance amounts vary by location.
  • Local programs can often be combined with statewide resources for additional benefits.

North Dakota’s down payment assistance programs are designed to make homeownership more attainable by reducing financial barriers. Whether you’re purchasing your first home or upgrading, these resources can help you achieve your goal of owning a home in the Peace Garden State.