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By Tyler Thompson · Licensed Real Estate Agent · Updated May 7, 2026

Homebuyer Programs in Grand Forks, ND (2026)

Population: 59,042 | Median home price: $290,000 | Est. closing costs: $6,000 - $8,500

Skyline of Grand Forks, ND

Grand Forks is North Dakota's third-largest city and home to the University of North Dakota, with about 59,000 residents and a median home price near $290,000. Buyers here 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. Grand Forks offers some of the most generous local incentives in the state: the Renaissance Zone Exemption provides up to 8 years of 100% property tax exemption on value added by qualifying construction or rehabilitation, and the New Home Owner Exemption gives newly built homes up to $150,000 of valuation tax-free for 2 years. The Grand Forks Community Land Trust offers permanently affordable homes for buyers earning up to 120% AMI, and Red River Valley Habitat for Humanity provides 0% interest mortgages and no down payment for low-income buyers willing to contribute sweat equity. Existing Section 8 voucher holders may also convert their rental assistance into a mortgage subsidy through the Grand Forks Housing Authority.

City Programs in Grand Forks

Gate City Bank First-Time Homebuyer Closing Cost Credit
Type:
Grant
Amount:
$250 closing cost credit
First-time only:
Yes
Grand Forks Housing Authority Homeownership Voucher
Type:
Repayable Loan
Amount:
Converts monthly Housing Choice Voucher (Section 8) rental assistance into a monthly mortgage payment subsidy
First-time only:
Yes
Grand Forks New Home Owner Exemption
Type:
Property Tax Relief
Amount:
Property tax exemption on up to $150,000 of valuation for 2 taxable years after the year of construction completion
First-time only:
No
Grand Forks Renaissance Zone Tax Exemption
Type:
Property Tax Relief
Amount:
Up to 8 years of 100% property tax exemption on the value added by qualifying construction or rehabilitation; plus state income tax incentives
First-time only:
No

State Programs in North Dakota

NDHFA Down Payment & Closing Cost Assistance (DCA)
Type:
Zero-Interest Loan
Amount:
Up to 3% of the loan amount or $3,000, whichever is greater
First-time only:
Yes
NDHFA FirstHome Program
Type:
Repayable Loan
Amount:
Below-market interest rate first mortgage
First-time only:
Yes
NDHFA HomeAccess Program
Type:
Repayable Loan
Amount:
Below-market interest rate first mortgage; can be paired with DCA
First-time only:
No
NDHFA Start Program
Type:
Grant
Amount:
3% of the first mortgage loan amount as a credit at closing
First-time only:
No
NDHFA Targeted Area Loan
Type:
Repayable Loan
Amount:
Below-market interest rate first mortgage
First-time only:
No
North Dakota Primary Residence Credit
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
North Dakota Roots Program
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

FHA Loans
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
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
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
HomeReady Mortgage (Fannie Mae)
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
HUD $100 Down Program
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
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
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

CommunityWorks ND Revolving Loan Program
Type:
Repayable Loan
Amount:
Variable; affordable loans for down payment, closing costs, rehabilitation, and emergency repairs
First-time only:
No
Grand Forks Community Land Trust
Type:
Repayable Loan
Amount:
Reduced home purchase price; CLT retains ownership of the land while buyer owns the structure; additional assistance for households at or below 80% AMI
First-time only:
No
Red River Valley Habitat for Humanity
Type:
Zero-Interest Loan
Amount:
Affordable Habitat-built home with 0% interest mortgage; no down payment; mortgage payment capped at 30% of annual income
First-time only:
No

How to Apply

Step 1:

Check your eligibility. NDHFA programs use county-based income limits that vary by household size. The Grand Forks Community Land Trust serves households up to 120% of area median income. Habitat for Humanity targets buyers below traditional financing thresholds, and the GFHA Homeownership Voucher requires an existing Housing Choice Voucher.

Step 2:

Complete homebuyer education. NDHFA loan programs require a homebuyer education certificate before closing. Approved options include eHome America (North Dakota) online courses and CommunityWorks ND (HUD-approved) phone counseling at 701-667-7600. Habitat applicants complete dedicated education through the affiliate.

Step 3:

Choose your loan path. First-time buyers should pair NDHFA FirstHome with DCA. The Start Program adds a 3% closing-cost credit with no repayment. Veterans, single parents, and households with disabled or elderly members should ask about HomeAccess. Higher-income or returning North Dakotans should explore North Dakota Roots.

Step 4:

Get pre-approved through an NDHFA participating lender. Gate City Bank operates in Grand Forks and offers an additional $250 closing cost credit for first-time buyers with a Gate City checking account. Other local NDHFA lenders are listed at ndhfa.org.

Step 5:

Find a home within program limits. The single-family purchase price cap on FirstHome is $294,600. Consider Grand Forks Community Land Trust homes for permanent affordability, or look at Renaissance Zone properties to capture the 8-year property tax exemption.

Step 6:

Submit your application. Your NDHFA lender handles the loan paperwork; contribute at least $500 of your own funds and provide your homebuyer education certificate dated before closing.

Step 7:

Apply for tax exemptions. If you're purchasing or building inside the Renaissance Zone, your application MUST be approved by both the city and the State of North Dakota BEFORE the sale closes or construction begins. If you're buying a newly constructed home, apply for the New Home Owner Exemption with the Grand Forks Assessing Department at 701-746-2611.

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