The North Dakota Housing Finance Agency (NDHFA) administers competitive first-mortgage loan programs — including FirstHome™, HomeAccess, and North Dakota Roots — along with two purchase assistance programs, DCA (Downpayment and Closing Cost Assistance) and Start. This guide explains how the programs work, who qualifies, and what a Cass County or Fargo-Moorhead first-time buyer can expect during the process.

Information is current as of the date below and is provided for educational purposes. For final eligibility, current income and purchase price limits, and program availability, consult a NDHFA participating lender or the NDHFA Homeownership Division directly.

🎯 Quick Facts: NDHFA Purchase Assistance (DCA & Start)

The DCA and Start programs each provide purchase assistance equal to 3% of the first mortgage loan amount. The assistance is applied as a credit toward the borrower's out-of-pocket cash requirement — down payment, closing costs, and prepaid items — at the time of closing. It is not disbursed to the buyer as cash, and it is not a forgivable grant: DCA is structured as a zero-interest, deferred-payment second loan that is repaid later under the program's terms.

DCA is aimed at low-income first-time buyers. Start serves low- to moderate-income buyers and does not require first-time buyer status; Start first mortgages carry a slightly higher interest rate than FirstHome, and 30- and 40-year terms are available.

Program Feature NDHFA Guideline
Assistance Amount 3% of the first mortgage loan amount, applied as a closing credit (DCA is a zero-interest, deferred-payment loan).
Borrower Contribution Minimum $500 from the borrower's own cash assets (some loan types may require more).
First-Time Buyer Rule For FirstHome and DCA: applicant must not have owned a principal residence in the prior three years. A manufactured home on a permanent foundation counts as ownership. (Start and Roots do not require first-time buyer status.)
Credit Standards Borrowers must meet normal credit underwriting standards for the applicable loan type (FHA, VA, USDA, or Conventional). The FICO minimum is set by the loan insurer/guarantor and the participating lender.
Property Eligibility One- or two-unit properties only (three- and four-unit properties are not eligible). The borrower must occupy one unit as a principal residence.
Homebuyer Education Required. The certificate of completion must be dated before loan closing.

Source & Current Limits: Income limits, purchase price limits, and the maximum first-mortgage loan amount vary by county and family size and are updated periodically. For current Cass County figures, see the NDHFA Homeownership page or contact a participating lender.

⚠️ Important: NDHFA Assistance Programs Do Not Stack

A common misconception is that NDHFA programs can be combined to increase the total benefit. They cannot. Per NDHFA's published program rules:

  • DCA cannot be used in conjunction with any other down payment assistance program.
  • Start cannot be used in conjunction with any other down payment assistance program.
  • DCA and Start are mutually exclusive — a buyer qualifies for one, not both.
  • Neither program may be combined with city, county, employer, non-profit, or other DPA sources.

Choosing between DCA and Start depends on income tier, interest-rate sensitivity, and loan term preference. A NDHFA participating lender can model both options for your situation.

🔑 How the Process Works

NDHFA loans are originated by participating private-sector lenders and sold to NDHFA for servicing after closing. The general path for a Fargo-Moorhead first-time buyer is:

  1. Connect with a NDHFA participating lender. The lender determines which NDHFA program — FirstHome, HomeAccess, Roots, DCA, or Start — fits the buyer's income, family size, credit profile, and target property location.
  2. Complete homebuyer education. A NDHFA-approved course is required for DCA, Start, and several first-mortgage programs. The certificate must be dated before loan closing.
  3. Identify and offer on an eligible property. The property must meet NDHFA's purchase price limit for the applicable county and family size, and the borrower must intend to occupy it as a principal residence.
  4. Close on the loan. If DCA or Start applies, the 3% assistance is applied as a credit at closing toward the out-of-pocket cash requirement.

Eligible Property Types

NDHFA's purchase assistance programs apply to:

  • Single-family residences
  • Approved condominiums and townhomes
  • Manufactured homes on a permanent foundation (subject to additional requirements)
  • One- to two-unit properties, where the borrower occupies one unit as a principal residence

Loan amounts are subject to the applicable conforming or FHA loan limit and the NDHFA purchase price limit for the property's county. These limits are adjusted periodically; verify current figures with the NDHFA website or a participating lender before relying on them for a transaction.

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❓ Frequently Asked Questions

• Can NDHFA assistance be combined with other down payment grants or programs?
No. Both DCA and Start are mutually exclusive and cannot be combined with each other or with any other down payment assistance program, including city, county, employer, or non-profit DPA sources. A buyer qualifies for one NDHFA assistance program at a time. This rule is published by NDHFA.
• Is the 3% DCA or Start assistance a grant, or money that has to be repaid?
It is not a forgivable grant. For the DCA program, NDHFA provides the assistance as a zero-interest, deferred-payment second loan, applied as a credit toward your out-of-pocket cash at closing and repaid later under the program's terms (typically when the home is sold, refinanced, or the first mortgage is paid off). Start assistance is also repayable, and Start first mortgages carry a slightly higher interest rate than FirstHome. Because exact repayment and payoff terms vary by program and loan product, the participating lender provides the specific terms in writing before closing. Treat this assistance as a deferred loan, not free money.
• What credit score is required to qualify?
NDHFA requires borrowers to meet "normal credit underwriting standards." The applicable FICO minimum is set by the loan insurer/guarantor (FHA, VA, USDA, or Conventional) and by the participating lender, not by NDHFA itself. A score of 620 or higher is a common practical threshold for FHA and Conventional first mortgages, but the controlling requirement comes from the lender. Buyers with lower scores should still consult a NDHFA participating lender to discuss their options.
• What can DCA or Start assistance be used for?
DCA and Start assistance equals 3% of the first mortgage loan amount, applied as a credit toward the borrower's out-of-pocket cash requirement at closing. This includes the down payment, closing costs, and prepaid items such as the initial escrow deposit and prepaid interest. It is not paid out to the buyer as cash.
• Is homebuyer education required?
Yes. A NDHFA-approved homebuyer education course is required for DCA, Start, and several NDHFA first-mortgage programs. The certificate of completion must be dated before loan closing. NDHFA has partnered with eHome America, CommunityWorks North Dakota, and The Village Family Service Center to deliver the course; both online and in-person options are available.
• Can I use NDHFA programs to buy a duplex in Fargo?
Yes. NDHFA's purchase assistance programs permit one- or two-unit properties, including duplexes, as long as the borrower occupies one of the units as a principal residence. Three- and four-unit properties are not eligible. The borrower must also meet the program's income, credit, and purchase price limits.
• What if my household income is above the FirstHome limit?
Buyers whose income exceeds the FirstHome or HomeAccess limits may qualify for the NDHFA North Dakota Roots program, which does not impose income or purchase price limits of its own (its loan amount still follows the applicable conforming loan limit). Depending on the Roots option chosen, it may be paired with down payment and closing cost assistance such as Start. A participating lender can confirm eligibility.

Disclaimer: Vision Realty is a licensed real estate brokerage, not a mortgage lender. The information on this page is summarized from publicly available NDHFA materials and is provided for general educational purposes only. It does not constitute lending, financial, or legal advice. Program details, income limits, and purchase price limits change periodically; verify all current figures with a NDHFA participating lender or the NDHFA Homeownership Division before relying on them for a transaction. Last reviewed: May 18, 2026.