The North Dakota Housing Finance Agency (NDHFA) offers competitive loan products, including the FirstHome™ and Start programs, designed to make homeownership in the Fargo and Cass County area accessible. We help you navigate the eligibility rules and secure the full assistance amount.
🎯 Quick Facts: NDHFA Down Payment Assistance (DCA/Start)
The Down Payment and Closing Cost Assistance (DCA) and Start programs provide key funding, typically equal to 3% of the first mortgage loan amount, in the form of a second mortgage that can be deferred or repaid monthly.
| Key Requirement | NDHFA Guidelines |
|---|---|
| Minimum FICO Score | Generally 620 (FHA/Conventional), though program variations apply. |
| Maximum Assistance | Up to 3% of the first mortgage amount (in the form of a second loan). |
| Borrower Contribution | Minimum $500 contribution from borrower's own funds (may be more for FHA). |
| First-Time Buyer Rule | Must not have owned a primary residence in the last three years (manufactured home on permanent foundation excluded). |
External Citation: For precise, current income and purchase price limits for Cass County, please visit the official North Dakota Housing Finance Agency website.
🔑 3 Steps to Securing NDHFA Assistance in Fargo
Working with a certified NDHFA agent and lender is mandatory to access these state funds. We streamline the process for Fargo-Moorhead area buyers:
- Verify Eligibility: We connect you with a participating lender to check your FICO Score, household income, and property price against the NDHFA limits.
- Complete Homebuyer Education: A required element for both DCA and Start programs. This course must be completed, and the certificate dated, before loan closing.
- Finalize Loan & Assistance: Once your NDHFA first mortgage is approved, the Down Payment Assistance is applied as a credit toward your Closing Costs or Down Payment in the final settlement process.
The NDHFA Advantage: Purchase Price & Property Types
The NDHFA programs are flexible, accommodating properties up to the maximum federally mandated conforming loan limits (typically around $766,550 for a single-family home, though this may fluctuate). These programs permit the purchase of:
- Single-Family Residences
- Condominiums and Townhomes
- One-to-Two Unit Multi-Family properties (borrower must occupy one unit).
❓ NDHFA Grant Program FAQs
Q: Do I need a perfect credit score to qualify for NDHFA grants?
A: No. While lenders require borrowers to meet normal credit underwriting standards, the NDHFA programs typically have a minimum FICO Score of 620, making them accessible to a wide range of first-time buyers.
Q: Can I use the NDHFA assistance for my closing costs?
A: Yes. The DCA and Start assistance is intended for any portion of your "out-of-pocket cash requirement," which includes the Closing Costs, prepaid items (like initial property taxes or insurance), and the Down Payment.
Q: Is the 3% assistance a grant or a loan?
A: The assistance is technically a zero-interest, deferred payment loan in many programs (like DCA). This loan is paid monthly along with your mortgage. However, some assistance options function as soft second mortgages that may be forgiven over time, depending on the specific program elected by your lender.
Q: Can I use the NDHFA programs to buy a duplex in Fargo?
A: Yes, NDHFA programs often permit the purchase of one-to-two unit Multi-Family properties, provided that you occupy one of the units as your primary residence. This is an excellent way to generate immediate rental income.