First-time home buyer programs in North Dakota: assistance, loans and real costs
North Dakota’s programs are small and simple — a 3% grant or forgivable second — and its no-transfer-tax, low-price market means a first-time buyer’s total cash to close is often under $10,000. Everything else on this page — the agency programs, the tax credit, the closing costs — sits on top of that fact.
| State housing agency | North Dakota Housing Finance Agency (NDHFA) |
|---|---|
| Median home price (approx.) | $260,000 — statewide order of magnitude; metros differ |
| 3.5% / 5% / 20% down | $9,100 / $13,000 / $52,000 on the median |
| Property tax (effective) | about 0.98% — roughly $2,548 a year on the median |
| Mortgage credit certificate | Not consistently offered — ask a lender |
| Transfer tax | North Dakota has no real estate transfer tax and no mortgage tax; only recording fees apply. |
The North Dakota housing agency’s programs
The North Dakota Housing Finance Agency’s FirstHome program offers below-market first mortgages to first-time buyers, with the Down Payment and Closing Cost Assistance (DCA) and Start programs adding cash assistance; HomeAccess serves specific households and repeat buyers.
How the assistance money works
DCA provides a grant of up to 3% of the loan amount for down payment and closing costs for lower-income buyers who complete homebuyer education; Start provides up to 3% as a forgivable second with a slightly higher first-mortgage rate and no income restriction beyond program limits.
Assistance structures matter as much as amounts: a grant is free; a forgivable second disappears if you stay long enough; a deferred second is repaid when you sell or refinance; a repayable second adds a monthly payment. Ask which one you are being offered. See how down payment assistance programs work.
Is there a first-time buyer tax credit?
NDHFA does not currently operate a Mortgage Credit Certificate program; ask a participating lender about any tax credit option.
Who qualifies: income, price and credit limits
FirstHome income limits vary by county and household size and purchase price limits apply; DCA has tighter income limits; a 640 minimum credit score and, for DCA, homebuyer education are required.
What closing costs look like in North Dakota
North Dakota has no real estate transfer tax and no mortgage tax; only recording fees apply.
North Dakota buyer closing costs typically total 2% to 3% of the price, among the lowest in the country, with title companies or attorneys handling closings. For the line-by-line, see closing costs explained and seller concessions limits.
Worked example: buying the median home in North Dakota
On a home at North Dakota’s rough median of $260,000, here is what the three standard first-time structures look like at an illustrative 6.5% rate — principal and interest only, before homeowners insurance and any mortgage insurance. The tax column uses the state’s approximate effective rate of 0.98% (about $2,548 a year on this price). Neither number is an offer; both are the right order of magnitude for a budget.
| Structure | Down payment | Loan amount | P&I at 6.5% (30 yr) | Property tax / mo (est.) |
|---|---|---|---|---|
| FHA, 3.5% down | $9,100 | $250,900 | $1,586 | $212 |
| Conventional, 5% down | $13,000 | $247,000 | $1,561 | $212 |
| Conventional, 20% down (no PMI) | $52,000 | $208,000 | $1,315 | $212 |
Illustrative rate and approximate state figures — not an offer or a quote. Full payment tables cover $150,000 to $800,000 at 5% to 8%; the affordability guide explains how lenders size the loan.
Frequently asked questions
Does North Dakota have down payment assistance for first-time buyers?
DCA provides a grant of up to 3% of the loan amount for down payment and closing costs for lower-income buyers who complete homebuyer education; Start provides up to 3% as a forgivable second with a slightly higher first-mortgage rate and no income restriction beyond program limits. The agency publishes the current limits and amounts; a lender approved for the program will know them.
Is there a first-time home buyer tax credit in North Dakota?
NDHFA does not currently operate a Mortgage Credit Certificate program; ask a participating lender about any tax credit option. A Mortgage Credit Certificate is a federal income tax credit, claimed each year on your return, not cash at closing.
What are typical closing costs when buying a house in North Dakota?
North Dakota buyer closing costs typically total 2% to 3% of the price, among the lowest in the country, with title companies or attorneys handling closings. North Dakota has no real estate transfer tax and no mortgage tax; only recording fees apply.
Related guides
- Earnest money explained: how much, who holds it, and how you lose it
- Appraisal gap: what happens when the home appraises below your offer
- Down payment assistance programs: how they work and how to find yours
- How much house can I afford? The math lenders actually use
Other North Dakota pages: hard money rules in North Dakota · foreclosure in North Dakota.