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About the NDHFA FirstHome Program
The NDHFA FirstHome Program is a below-market, 30-year fixed-rate first mortgage for first-time buyers anywhere in North Dakota. It is run by the North Dakota Housing Finance Agency, which purchases and services each loan after a participating lender closes it. On October 15, 2026, the FirstHome rate on FHA, VA and RD loans was 6.200% with a 1.5% origination fee, or 6.450% with no origination fee, about 0.90 points below NDHFA's own ND Roots loan.
To qualify for FirstHome, household income must fall under NDHFA's limits effective June 15, 2026: $105,730 for a household of one or two and $121,590 for three or more, in every county. The purchase price cap is $500,000 for an existing or newly built single-family home, $640,000 for a duplex, $773,000 for a triplex and $960,000 for a fourplex. You cannot have owned a home as your principal residence in the last three years, and that test also applies to a spouse who will live in the home. Owning a rental, a vacation home, vacant land or a mobile home not on a permanent foundation does not disqualify you. NDHFA sets no minimum credit score and no debt-to-income overlay, but the loan must get an Approve/Eligible or Accept from automated underwriting or follow FHA, VA or USDA rules. The stricter rule is that NDHFA counts projected income from all sources for the next 12 months, not just the income your lender uses.
FirstHome works with conventional, FHA, VA and USDA Rural Development loans. You need $500 of your own or gift money, closing costs cannot be rolled into the loan, and co-signers are not allowed. Pairing FirstHome with DCA keeps the same 6.200% rate and adds a 3% credit, while FirstHome Start adds the same 3% at 6.700%. ND Roots has no income or price limits but was priced at 7.100% on October 15, 2026.
How much assistance
Eligibility
- Income limits: Effective June 15, 2026, all counties: $105,730 for households of 1-2; $121,590 for households of 3 or more. DCA add-on uses lower county limits (e.g., Cass County $92,150 for 4 people).
- Purchase price limit: $500,000
- First-time buyer required: Yes — Must not have owned a home as a principal residence in the last three years; applies to the borrower, spouse and any co-obligor who will live in the home. Owning a rental, vacation home, vacant land or a mobile home not on a permanent foundation does not disqualify.
- Geographic restrictions: Property must be located in North Dakota.
- Homebuyer education required: No
How to Apply for NDHFA FirstHome Program
Step 1: Check the income and price limits
Compare your household income with NDHFA's 2026 FirstHome limits at ndhousing.nd.gov/income-and-purchase-price-limits: $105,730 for one or two people and $121,590 for three or more, statewide. Confirm you have not owned a principal residence in the past three years. Count every income source for the 12 months after closing, including child support, Social Security, pensions and self-employment income from you, your spouse and any co-borrower.
Step 2: Take a homebuyer class if you want DCA
FirstHome alone does not require a class, but the DCA credit does, and the certificate must be dated before closing. NDHFA accepts eHome America online for $100, or $31 with code HOME30, plus free options such as Freddie Mac CreditSmart Homebuyer U and Fannie Mae HomeView. In the Fargo area, CAPLP-Lakes and Prairies runs in-person classes from 1:00 to 5:30 p.m.
Step 3: Pick an NDHFA participating lender
NDHFA does not lend directly. Find a participating bank, credit union or mortgage company at ndhousing.nd.gov/find-participating-lender, or call NDHFA at 701-328-8080. Ask each lender to quote FirstHome both ways, at 6.200% with a 1.5% origination fee and at 6.450% with no fee, since that tradeoff changes your cash to close. Ask whether conventional, FHA, VA or USDA fits you best.
Step 4: Get pre-approved and choose your assistance
Your lender runs credit and income through automated underwriting. A conventional file needs Approve/Eligible in Desktop Underwriter or Accept in Loan Prospector, while FHA, VA and USDA files may be manually underwritten. Decide now whether to add DCA, which uses lower county income limits such as $92,150 for four people in Cass County, or Start, which allows higher incomes at a 0.50% higher rate.
Step 5: Find a home under the cap
Shop for a single-family home, townhome, condominium or manufactured home on a permanent foundation priced at or under $500,000. Duplexes up to $640,000 qualify if you live in one unit and the building is at least five years old. The lot cannot exceed 10 acres, and a home business may use no more than 15% of the finished space. Your $500 contribution goes toward the purchase.
Step 6: Reserve the loan and close
After your offer is accepted, the lender requests a reservation through NDHFA's website and sends the Residency and Income Statement, Appraisal Addendum A and Recapture Tax Disclosure. NDHFA issues a Compliance Commitment once you and the property meet program rules. The lender then closes and funds the loan, and NDHFA buys it and becomes your servicer. Rates change daily, so confirm yours at ndhousing.nd.gov/interest-rates.
Real Cost Example
On a $295,000 home in Fargo, near the city's estimated median price, a FirstHome FHA loan needs 3.5% down, or $10,325. The base loan is $284,675, and the price sits $205,000 under the $500,000 FirstHome cap. At the no-fee 6.450% rate posted October 15, 2026, principal and interest run about $1,790 a month before mortgage insurance, taxes and homeowners insurance.
Estimated closing costs in the Fargo area run $6,000 to $9,000, and FirstHome does not let you finance them into the loan. Without help, the buyer needs $16,325 to $19,325 at closing. Choosing the 6.200% rate instead adds a 1.5% origination fee of about $4,270, so the no-fee option usually wins for a cash-short buyer. Negotiated seller credits can cover part of the closing costs.
If the household also meets the DCA limit, such as $92,150 for four people in Cass County, DCA adds a credit of exactly 3% of the loan, or $8,540, at the same FirstHome rate. That drops cash to close to roughly $7,785 to $10,785, with at least $500 coming from the buyer's own or gift funds.
Combining With Other Programs
The NDHFA FirstHome Program pairs with one of NDHFA's two assistance products. DCA adds a 3% credit, $8,540 on a $284,675 loan, at the regular FirstHome rate, but uses lower county income limits, such as $64,550 for one person in Cass County, and requires a homebuyer class. Start adds the same 3% credit with higher income limits at a rate 0.50% above FirstHome. Either credit carries a lien that ends after 96 monthly payments.
You can use DCA or Start, not both, and NDHFA says DCA cannot be combined with any other down payment assistance program. Selling, refinancing or transferring the home before the 96th payment means repaying the pro-rated balance, so selling halfway through on $8,540 means repaying $4,270. Both credits are limited to one- or two-unit homes. Call NDHFA at 701-328-8080 before layering outside help.
After you move in, the North Dakota Primary Residence Credit can cut your property tax bill by up to $1,600, with no income limit. Apply between January 1 and April 1 at tax.nd.gov/prc. NDHFA also allows Fannie Mae HomeReady and Freddie Mac Home Possible inside FirstHome, which can lower conventional mortgage insurance costs.
Pros and Cons
The NDHFA FirstHome Program offers one of the lowest fixed rates available to North Dakota first-time buyers, 6.200% or 6.450% on government loans on October 15, 2026, versus 7.100% for ND Roots. Its income limits of $105,730 and $121,590 apply in every county, and the $500,000 price cap covers most homes in Fargo, Bismarck and Minot. NDHFA sets no minimum credit score and no debt-to-income overlay, and the DCA option adds a 3% credit without raising the rate. Owning a rental or vacation home does not count against you.
The biggest limitation is cash at closing: closing costs cannot be financed, and the 3% credit rarely covers both the down payment and closing costs on a $295,000 Fargo home. DCA's income limits are far lower than FirstHome's, and Start costs 0.50% more in rate. Repeat buyers are excluded unless they own no principal residence for three years, and a Recapture Tax Disclosure is part of every file. Buyers over the limits should compare ND Roots, which has no income or price caps, or a standard FHA loan.
Frequently Asked Questions
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Program details last verified: October 15, 2026