NDHFA Downpayment and Closing Cost Assistance Program
Financial Assistance for Homebuyers in North Dakota
The purpose of this program is to make funds available to eligible applicants who are interested in purchasing a home but need financial help to pay the upfront costs, which include the down payment, as well as the closing costs and prepaid items required to obtain homeownership. These expenses can add up to a substantial amount, and the inability to pay it might keep people stuck in a renters trap.
The DCA Program provides income-eligible applicants up to 3 percent of the total purchase price, or $3,000 in assistance funds, whichever is greater. These funds come in the form of a zero-interest, deferred payment loan. DCA cannot be used in conjunction with other down payment assistance programs.
All DCA Program applicants must meet certain requirements to be considered eligible for assistance. Only first-time homebuyers can qualify for the program; those who have owned a home in the last three years are not eligible. They must secure their first mortgage from NDHFA, and contribute at least $500 from their own cash assets. Borrowers must meet the program's income limits, which vary based on county and family size, and they should meet the normal credit underwriting standards.
Participants are also responsible for completing a homebuyer education course; the certificate of completion must be dated before loan closing.
Any property being purchased must serve as the borrower’s primary residence, and fall within the program’s purchase price limits. Homes located within a 100-year floodplain are not eligible.
Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but States and Local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price and income limits.
Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.
FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.
Down Payment Grants in North Dakota
The North Dakota Housing Finance Agency (NDHFA) offers individuals the Downpayment and Closing Cost Assistance (DCA) Program. With this program, the NDHFA aims to help low-income, first-time homebuyers meet their out-of-pocket cash requirements.
The North Dakota Housing Finance Agency (NDHFA) created the Start Program to help make the home purchasing process more affordable for low- to moderate-income homebuyers. Income-eligible individuals can apply for home mortgages that come with down payment and closing cost assistance.
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