North Dakota - Government Backed Loans

The North Dakota Housing Finance Agency is a public financial institution dedicated to making housing affordable for all North Dakotans. The Agency facilitates affordable mortgage financing, assures the continued availability of low-income rental housing, and seeks to provide for the state's changing housing needs.

Purchase Programs

FirstHome Program

The FirstHome Program provides first-time homebuyers with low-interest, fixed-rate, 30- and 40-year mortgages. Downpayments with this program range from zero to 3% of the home's sales price, and VA ans USDA loans offer 100% financing to eligible homebuyers, while others such as FHA and other conventional loans offer up to 97% financing. These mortgages are funded through Mortgage Revenue Bonds, and your local lender may refer to the loans as such.

Continue reading about the FirstHome Program.

HomeKey Program

First-time, low-income homebuyers are offered a financial break on the North Dakota Housing Finance Agency's already below market mortgage interest rates. For the first year of their mortgage, homebuyers receive an interest rate that is 1% lower than the standard FirstHome interest rate. Over the next year, interest rates are increased twice, then remain constant for the remainder of the loan's term. The HomeKey Program is available in 30- and 40-year terms.

Continue reading about HomeKey Program.

HomeAccess Program

The HomeAccess Program offers assistance in the form of low-interest mortgage loans to elderly, disabled, veteran and single-parent households. Although homebuyers are not required to be first-time buyers in order to qualify for the HomeAccess Program, there are income and home purchase price limits that apply. Mortgages are provided at the same interest rate as the FirstHome Program. The HomeAcees Program can be used in conjunction with the Start, HomeKey and DCA programs.

Continue reading the HomeAccess Program.

North Dakota Roots Program

The North Dakota Roots Program is designed to assist new and returning North Dakotans in achieving homeownership within the state. Assistance is provided in the form of a market or below market interest rate mortgage loan, which includes a downpayment and closing costs assistance. Homebuyers must be purchasing their first home in North Dakota in order to qualify, and a minimum $500 contribution is required.

Continue reading about North Dakota Roots Program.

Rural Real Estate Mortgage Program - RREM

Homebuyers that fall within designated income limits may qualify for the Rural Real Estate Mortgage Program. This program offers affordable mortgages to households who purchase single-family, owner-occupied, non-farm residences that are permanently affixed to a foundation within a designated rural area.

Continue reading about RREM.

Targeted Area Loan

In order to receive assistance from a Targeted Area Loan, homebuyers are not required to meet first-time homebuyer qualifications. Income and home purchase price limits do apply, as well as the same interest rates offered through the FirstHome program. Funding for a Targeted Area Loan is made available on a first-come, first-served basis, and homebuyers are encouraged to contact the Homeownership Division in order to verify whether a home is located within a Targeted Area or not, as well as fund availability.

Continue reading about the Targeted Area Loan.

Start Program

The Start Program offers first-time homebuyers with affordable, fixed-rate mortgages in order to provide extra funding toward purchasing a home. This funding is provided in the form of mortgage assistance equal to 3% of the Start first mortgage amount, and is loaned at a slightly higher interest rate than that of a FirstHome mortgage. This program may not be used in conjunction with other downpayment assistance programs, and borrowers must contribute a minimum of $500 toward the home's purchase.

Continue reading about the Start Program.

Downpayment and Closing Cost Assistance Program

The Downpayment and Closing Cost Assistance Program provides low-income, first-time homebuyers with interest-free, deferred-payment loans in order to assist with the initial costs of a downpayment and closing costs. Funding is provided in the amount of either 3% of the home's purchase price or $3, 000, whichever is greater. A minimum of $500 is required of the homebuyer, and this program may be used in conjunction with the FirstHome and HomeKey loans, but not a Star-assisted loan or other downpayment assistance programs.

Continue reading about the Downpayment and Closing Cost Assistance Program.

Approved Second Mortgage/Grant Programs

The state of North Dakota offers various private mortgage and grant programs that assist homebuyers with downpayment and closing costs. These programs have been approved by the North Dakota Housing Finance Agency, and have individual requirements and types of funding.

Continue reading about the Approved Second Mortgage / Grant Programs.

Habitat for Humanity Loan Purchase Program

The Habitat for Humanity Loan Purchase Program provides selected families with newly built homes through Habitat affiliates. Homes are financed through private lenders, and the loans are purchased from the lenders by the NDHFA.

Continue reading about the Habitat for Humanity Loan Purchase Program.

Homeownership Acquisition and Rehabilitation Program - HARP

Low-income homebuyers are able to purchase rehabilitated homes at affordable prices through HARP. This Program requires that homebuyers fall within income limits of 80% of the area median income or less, and must complete a homebuyer education workshop in order to qualify.

Continue reading about HARP.