See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated May 5, 2026
Homebuyer Programs in Moorhead, MN (2026)
Moorhead is a regional hub of about 45,000 residents in Clay County, sitting on the Red River across from Fargo, North Dakota. The median home price is near 2,000, making it one of the more affordable cities of its size in Minnesota. Moorhead runs its own Homebuyer Incentives Program, which offers up to ,000 in forgivable loans for first-time buyers purchasing newly built or never-occupied homes in the city. New construction buyers can stack a 2-year property tax rebate that often saves thousands of dollars, plus special assessment loans available to first-time buyers. State programs include Minnesota Housing Start Up first mortgage, the Deferred Payment Loan (up to ,500), the Monthly Payment Loan (up to ,000), and the First-Generation Loan (up to ,000 — 10% of purchase price). Lake Agassiz Habitat for Humanity, headquartered locally, has built homes in Cass County, ND and Clay County, MN for over 34 years. Federal options like FHA, VA, and USDA round out the toolkit — and Moorhead's lower median price means many buyers can qualify with reasonable income.
City Programs in Moorhead
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Moorhead Homebuyer Incentives Program | Forgivable Loan | — | Yes | View → |
- Type:
- Forgivable Loan
- First-time only:
- Yes
State Programs in Minnesota
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Minnesota First-Generation Homebuyer Loan Program | Deferred Loan | — | Yes | View → |
| Minnesota Housing Deferred Payment Loan | Deferred Loan | — | Yes | View → |
| Minnesota Housing Monthly Payment Loan | Repayable Loan | — | No | View → |
| Minnesota Housing Start Up Program | Government-Insured Mortgage | First mortgage with as little as 3% down | Yes | View → |
| Minnesota Housing Step Up Program | Government-Insured Mortgage | First mortgage; can also be used to refinance | No | View → |
- Type:
- Deferred Loan
- First-time only:
- Yes
- Type:
- Deferred Loan
- First-time only:
- Yes
- Type:
- Repayable Loan
- First-time only:
- No
- Type:
- Government-Insured Mortgage
- Amount:
- First mortgage with as little as 3% down
- First-time only:
- Yes
- Type:
- Government-Insured Mortgage
- Amount:
- First mortgage; can also be used to refinance
- First-time only:
- No
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Lake Agassiz Habitat for Humanity Homeownership Program | Government-Insured Mortgage | Affordable mortgage on a Habitat-built or Habitat-renovated home; sweat equity required in lieu of traditional down payment | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Affordable mortgage on a Habitat-built or Habitat-renovated home; sweat equity required in lieu of traditional down payment
- First-time only:
- No
How to Apply
Step 1: Confirm your eligibility for the City of Moorhead Homebuyer Incentives Program. The program targets first-time buyers purchasing newly built or never-occupied homes in Moorhead.
Step 2: Complete the City of Moorhead's homebuyer education program. The City offers free or low-cost classes through its Property Services / Housing department.
Step 3: Contact the City of Moorhead Property Services department to apply for the Homebuyer Incentives Program. Visit moorheadmn.gov for current contact information.
Step 4: Get pre-approved with a Minnesota Housing approved lender. Use the lender directory at mnhousing.gov to layer the Start Up first mortgage with the Deferred Payment Loan or Monthly Payment Loan.
Step 5: Find a home in Moorhead. To qualify for the city's ,000 forgivable loan, focus on new construction or homes that have not yet been occupied. The 2-year property tax rebate also rewards new construction buyers.
Step 6: If you may qualify as a first-generation buyer (neither you nor your parents have owned a home), ask your lender about the Minnesota First-Generation Homebuyer Loan, which can provide up to ,000 in deferred, forgivable assistance.
Step 7: If you're open to a Habitat home, contact Lake Agassiz Habitat for Humanity online at lakeagassizhabitat.org/apply during their open application periods. Plan for sweat equity in lieu of a traditional down payment.
Step 8: Submit your final application and complete underwriting. Coordinate timing between your first mortgage closing, the city forgivable loan, and any special assessment financing.
Frequently Asked Questions
How much down payment assistance can I get in Moorhead?+−
What types of homes qualify for the Moorhead Homebuyer Incentives Program?+−
Do I have to be a first-time homebuyer?+−
What is the property tax rebate for new construction?+−
What homebuyer education is required?+−
How does Lake Agassiz Habitat for Humanity work?+−
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