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Let’s be honest—the biggest barrier standing between most renters and homeownership isn’t the monthly payment; it’s the check you have to write at the closing table. What if I told you I have had clients purchase homes with less than $2000?
Too many potential buyers sit on the sidelines assuming they need to save 20% before they can even talk to a lender. That is simply not true.
In North Dakota, we have robust programs designed specifically to bridge that gap. As your agent, my job isn’t just to find you a house; it’s to help you find the money to buy it. Here are the real, active programs you need to know about right now.
The “Community” Secret Weapons
These are the programs most people miss because they aren’t big national banks—they are local non-profits designed to help you succeed.
- Community Action Partnership – IDA Program
This is one of the best deals in the state if you have a little time to plan. It’s called an Individual Development Account (IDA).- The Deal: It’s a savings match program. For every dollar you save toward a home, they match it (often up to a 4:1 ratio!).
- The Catch: You usually have to save for at least 6 months and take a financial literacy class. Availability varies by region (there are 8 regions in ND), so we need to check your local office.
- The DREAM Fund (Lewis & Clark Development Group)
Operated by CommunityWorks North Dakota, this fund is designed to cover the “gap” that stops a deal.- The Benefit: They provide a second mortgage specifically for down payment and closing costs. It’s flexible and meant for buyers who might not fit into a perfect “standard loan” box.
- Essential Public Employee Program (EP2)
Also from Lewis & Clark, this is a huge “thank you” to our public servants.- Who is it for? Teachers, law enforcement, city/county/state employees, and medical staff.
- The Benefit: You can get up to $10,000 in assistance at a very low interest rate (often around 4%) to cover your down payment and avoid mortgage insurance.
The Heavy Hitter: North Dakota Housing Finance Agency (NDHFA)
The NDHFA is the state’s primary resource for affordable housing. They don’t just offer loans; they offer assistance.
- FirstHome™ Program This is the flagship program for first-time buyers (or anyone who hasn’t owned a home in the last 3 years). It offers low-interest mortgage loans that can be paired with down payment assistance.
- The Benefit: Lower interest rates make your monthly payment more affordable.
- North Dakota Roots Not a first-time buyer? You aren’t left out. The Roots program is open to repeat buyers or those who might exceed the income limits of the FirstHome program.
- The Benefit: You can still get below-market interest rates or market-rate loans with down payment assistance attached.
- Start! Program This is specifically for down payment and closing cost assistance. If you qualify, this program provides a loan to cover your upfront costs.
- The Benefit: It effectively reduces the amount of cash you need to bring to the table.
Local & Targeted Assistance
Real estate is local, and sometimes the best money is right in your backyard. It would be fun if Bismarck jumped on this bandwagon too.
- City of Fargo Down Payment Assistance
If you are buying within the city limits of Fargo, the city offers a program to help low-to-moderate-income households cover down payment and closing costs. - Grafton Housing Incentive
Building new? The city of Grafton has an aggressive program offering significant grants (up to $20,000 in some cases) for purchasing lots or building new homes to spur development.
Federal 0% Down Options
Sometimes the best “assistance” is not having to make a down payment at all.
- USDA Rural Development Loans
Because much of North Dakota is designated as “rural” (often including towns just outside major metro areas), you may qualify for a USDA loan which requires 0% down. - VA Home Loans
If you have served, you most likely have earned this benefit. VA loans are arguably the best product on the market—0% down and no mortgage insurance. These are my ABSOLUTE FAVORITE LOANS!!!!
What You Need to Do Next
These programs have rules. They have income limits, purchase price limits, and credit score requirements. Navigating them alone is a headache; navigating them with a pro is a strategy.
Stop guessing if you can afford to buy. Call me. We will look at your specific situation, connect you with a lender who knows these programs inside and out, and get you on the path to ownership. With over 140 purchases and sales and a large network of lenders and community helpers, we can help ‘graduate’ almost any renter.
If buying a home is on your horizon, all calls are free. We all – Realtors, lenders, non-profits – are here to help!
