See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated May 7, 2026
Homebuyer Programs in Fargo, ND (2026)
Fargo is North Dakota's largest city and the economic anchor of the Red River Valley, home to about 129,000 residents and a median home price near $295,000 — well below the national median. First-time buyers in Fargo can stack the NDHFA FirstHome below-market mortgage with up to $3,000 in DCA down payment assistance, or use the Start Program for a 3% closing-cost credit with no repayment required. The City of Fargo does not operate its own down payment assistance program, but it offers two strong buyer-side incentives: a New Residential Construction property tax exemption that can save up to $4,000 over two years on a newly built home, and a Renaissance Zone exemption that can wipe out the building portion of property tax for five years in qualifying districts. Lake Agassiz Habitat for Humanity also serves Cass County for buyers earning 50-80% of area median income who can commit 300-550 sweat equity hours. Combining state assistance, city tax relief, and federal loan products can dramatically reduce upfront and ongoing costs for Fargo homebuyers.
City Programs in Fargo
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Fargo New Residential Construction Property Tax Exemption | Property Tax Relief | Up to $150,000 off property valuation for 2 taxable years (saves up to $4,000 on property tax bill) | No | View → |
| Fargo Renaissance Zone Property Tax Exemption | Property Tax Relief | 100% property tax exemption on the value of the building (excludes land) for 5 taxable years | No | View → |
| Gate City Bank First-Time Homebuyer Closing Cost Credit | Grant | $250 closing cost credit | Yes | View → |
- Type:
- Property Tax Relief
- Amount:
- Up to $150,000 off property valuation for 2 taxable years (saves up to $4,000 on property tax bill)
- First-time only:
- No
- Type:
- Property Tax Relief
- Amount:
- 100% property tax exemption on the value of the building (excludes land) for 5 taxable years
- First-time only:
- No
- Type:
- Grant
- Amount:
- $250 closing cost credit
- First-time only:
- Yes
State Programs in North Dakota
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| NDHFA Down Payment & Closing Cost Assistance (DCA) | Zero-Interest Loan | Up to 3% of the loan amount or $3,000, whichever is greater | Yes | View → |
| NDHFA FirstHome Program | Repayable Loan | Below-market 30-year fixed first mortgage: 6.200% (1.5% origination fee) or 6.450% (no fee) on FHA/VA/RD, 0.25% higher conventional, as of Oct 15, 2026; optional 3% DCA or Start credit | Yes | View → |
| NDHFA HomeAccess Program | Repayable Loan | Below-market 30-year fixed first mortgage at the FirstHome rate (6.200% government / 6.450% conventional as of Oct 14, 2026); optional 3% DCA or Start credit | No | View → |
| NDHFA Start Program | Grant | 3% of the first mortgage loan amount as a credit at closing | No | View → |
| NDHFA Targeted Area Loan | Repayable Loan | Below-market interest rate first mortgage | No | View → |
| North Dakota Primary Residence Credit | Tax Credit | Up to $1,600 per household in property tax relief for tax years 2025 and 2026 (increased from $500 in 2024) | No | View → |
| North Dakota Roots Program | Repayable Loan | Below-market interest rate loan, OR market-rate loan with down payment and closing cost assistance | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Up to 3% of the loan amount or $3,000, whichever is greater
- First-time only:
- Yes
- Type:
- Repayable Loan
- Amount:
- Below-market 30-year fixed first mortgage: 6.200% (1.5% origination fee) or 6.450% (no fee) on FHA/VA/RD, 0.25% higher conventional, as of Oct 15, 2026; optional 3% DCA or Start credit
- First-time only:
- Yes
- Type:
- Repayable Loan
- Amount:
- Below-market 30-year fixed first mortgage at the FirstHome rate (6.200% government / 6.450% conventional as of Oct 14, 2026); optional 3% DCA or Start credit
- First-time only:
- No
- Type:
- Grant
- Amount:
- 3% of the first mortgage loan amount as a credit at closing
- First-time only:
- No
- Type:
- Repayable Loan
- Amount:
- Below-market interest rate first mortgage
- First-time only:
- No
- Type:
- Tax Credit
- Amount:
- Up to $1,600 per household in property tax relief for tax years 2025 and 2026 (increased from $500 in 2024)
- First-time only:
- No
- Type:
- Repayable Loan
- Amount:
- Below-market interest rate loan, OR market-rate loan with down payment and closing cost assistance
- 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 | Zero-Interest Loan | Affordable Habitat-built home with zero-interest mortgage; mortgage payment capped at 30% of gross monthly income | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable Habitat-built home with zero-interest mortgage; mortgage payment capped at 30% of gross monthly income
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. Most NDHFA programs require income limits that vary by household size. In Cass County, FirstHome serves households up to roughly $105,500 for a 1-2 person household. The North Dakota Roots program serves higher-income households up to 200% of area median income (approximately $167,800 to $193,200).
Step 2: Complete homebuyer education. Required for all NDHFA loan programs. The Village Family Service Center in Fargo refers buyers to eHome America (North Dakota) for online courses. Lake Agassiz Habitat for Humanity also provides financial fitness classes.
Step 3: Choose your loan path. If you're a first-time buyer, start with FirstHome plus DCA. If you've owned a home before but earn moderate income, look at the Start Program. If you're a veteran, single parent, or household member with a disability, ask about HomeAccess. New or returning North Dakotans with higher incomes should ask about North Dakota Roots.
Step 4: Get pre-approved through an NDHFA participating lender. Gate City Bank is the largest NDHFA lender in Fargo and offers an additional $250 closing cost credit for first-time buyers with a Gate City checking account. Call 701-293-2400 to start.
Step 5: Find a home within program limits. The single-family purchase price cap on FirstHome is $294,600. Newly constructed homes in Fargo qualify for the New Residential Construction property tax exemption (up to $4,000 in savings over 2 years). Homes in the Renaissance Zone qualify for a 5-year building-value tax exemption.
Step 6: Submit your application. Your NDHFA lender handles the loan paperwork; you must contribute at least $500 from your own funds and provide your homebuyer education certificate dated before closing.
Step 7: Close and apply for city tax exemptions. After closing, contact the Fargo Assessor's Office at 701-241-1474 to apply for the New Construction or Renaissance Zone property tax exemption if applicable.
Frequently Asked Questions
How much down payment assistance can I get in Fargo?+−
Do I have to be a first-time homebuyer?+−
What is the maximum home price in Fargo?+−
What homebuyer education is required?+−
Are there extra benefits for buying a newly built home in Fargo?+−
What if my property is in Fargo's Renaissance Zone?+−
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