Down Payment Assistance in North Dakota

What is down payment assistance in North Dakota?

North Dakota’s home prices stay below the national average across most of the state, giving buyers a head start compared to much of the country. However, an oil boom in the western part of the state has pushed prices higher around the Bakken region, even as areas like Fargo and Grand Forks remain more affordable. With the right down payment assistance, homeownership across North Dakota can still be within reach no matter which part of the state you’re looking at.

Homebuyers may be able to use down payment assistance (DPA) programs to help them purchase a property. Down payment assistance is made up of national, state, local, and employer-sponsored programs designed to support homebuyers who can afford a monthly mortgage payment but need help coming up with the upfront cash needed for a down payment and closing costs.

Offered by government agencies, nonprofits, and some private organizations, DPA provides financial support to help homebuyers cover the down payment, closing costs, or both. It helps to bridge the gap between what buyers have saved and the funding they need to buy.

It may also provide homebuyers with a financial cushion, so they don’t have to drain all of their savings to afford homeownership.

From the badlands of the west to the flat farmland of the Red River Valley in the east, North Dakota homebuyers can tap into statewide, local, and community-based programs that help cover the upfront costs of purchasing a home.

Assistance typically comes in one of three forms: a grant (money you don’t repay), a forgivable loan (which is gradually forgiven the longer you stay in the home), or a low-interest loan. The right option depends on the program and your individual situation.

Whether you’re a first-time homebuyer in North Dakota or returning to homeownership after years away, there may be money available to help make up the difference between how much you’ve saved and the amount you need to close on a home.  

How does down payment assistance work?

Every down payment assistance program has its own rules, but most follow a similar path from homebuyers researching their options to funding.

Research. The DPA landscape is larger than most people realize. In fact, there were more than 2,700 DPA programs as of July 2026, according to Down Payment Resource, a company that connects homebuyers to the programs. Assistance may be available at the state, county, city, or employer level, and different programs have different eligibility requirements. If one program doesn’t fit your situation, keep looking. There may be others that will.

Determine your eligibility. Common requirements include income limits, minimum credit scores, and property location restrictions. Understanding your financial profile, where you want to buy, and how long you plan to live in the home will help you identify which programs are worth pursuing.

Apply. Once you find a down payment program that fits your criteria and eligibility, you’ll submit an application and supporting documents. Expect to provide proof of income, personal identification, credit information, and details about the property you intend to purchase.

Get approved and receive funding. If your application is approved and your information verified, you’ll receive the assistance at closing. It’s typically applied directly toward your down payment, closing costs, or both, depending on the program’s terms.

It is important to note that most DPA programs have their own conditions, which may include having to repay the loan in part or full if you move early, sell, or refinance the home. Make sure to always review and understand the terms and conditions of any loan you use.

Additionally, some programs may run out of funding. That’s why it’s important to check availability and stay on top of deadlines.

Who qualifies for down payment assistance?

Many people don’t realize they may be able to qualify for down payment assistance. DPA isn’t just a tool for first-time and first-generation homebuyers or those with lower incomes.

The assistance is available for a wide variety of people in a range of financial situations. Nearly two-thirds, 62%, of current DPA programs serve homebuyers earning more than $100,000 a year and 11% have no income limits, according to Down Payment Resource.

Additionally, more than a third, 38%, of DPA programs don’t have a first-time homebuyer requirement.

There are DPA programs for: First-generation homebuyers, Native American homebuyers, veterans, educators, law enforcement, first responders, municipal employees, those who earn less than a certain threshold, and more. Some programs also exist for buyers who purchase properties in certain communities.

Some organizations also offer homeownership assistance programs for their employees, so make sure you check with your employer as well.

Types of down payment assistance

The majority of DPA programs fall into two categories: Second mortgages and grants.

Second mortgages are by far the most common form of down payment assistance, making up 56% of all programs, according to Down Payment Resource. This is a separate loan running alongside your primary mortgage, with its own monthly payment.

Second mortgages are often set up to be a deferred or forgivable loan to reduce the upfront cost. If you have a deferred loan, it means that it doesn’t have to be repaid until you sell, refinance, or move out. A forgivable loan is gradually forgiven if you live in the home for a set amount of time.

Grants make up 9% of DPA programs and are the most straightforward form of assistance. They’re a gift, with no repayment required under any circumstances. As always, read the terms carefully to make sure you understand any conditions attached.

Finding down payment assistance

Down Payment Resource offers an interactive search feature that allows you to search available DPA programs by location as well as by things like your occupation, military status, or disability status.

New American Funding (NAF) also offers a down payment assistance program called Pathway to Homeownership. Specifically available to first-time homebuyers, eligible borrowers may receive up to $6,000* in financial assistance. This money can be used to help with your down payment, closing costs, or other costs. It can also be combined with other DPA programs.

National down payment assistance programs

While there is not national database of nation-wide DPA programs available, there are several main ones that are notable. They include:

The Chenoa Fund

The Chenoa Fund is administered by CBC Mortgage Agency (a federally chartered tribal housing finance authority). It is one of the most accessible national DPA programs available because it drops two of the most common barriers to qualification. It has no income limits and no first-time homebuyer requirement.

The program covers the required 3.5% down payment on Federal Housing Administration (FHA) loans. The aid is structured either as a forgivable second mortgage or a repayable second mortgage, depending on the option selected.

Borrowers need a minimum 600 credit score to qualify. The program is available in all states except New York.

Since it works through a network of participating lenders nationwide, buyers can access it through their mortgage lender rather than applying directly.

The National Homebuyers Fund

The National Homebuyers Fund (NHF) is a nonprofit organization that provides down payment and closing cost assistance of up to 5% of the loan amount. It’s administered as a grant, meaning no repayment is required.

It has no first-time homebuyer requirement, making it available to repeat buyers who may not qualify for programs with that restriction. It works with FHA, U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Conventional loans.

The credit score and debt-to-income requirements are flexible.

The NHF is available in most states and is accessed through a network of participating lenders rather than through a direct application to the fund itself.

Many of the national DPA programs are offered by various lenders and private non-profit organizations like the Homeownership Council of America.

Down payment assistance programs in North Dakota

The North Dakota Housing Finance Agency (NDHFA) is the state’s housing finance agency and the central source for statewide DPA programs. NDHFA doesn’t lend directly to buyers. Homebuyers apply through an NDHFA-approved participating lender, which will combine the assistance with the mortgage.

All NDHFA programs share a few baseline requirements:

• Requires a $500 out-of-pocket cash investment
• Borrower must occupy the home as your principal residence
• Household income must be below a specific income limit according to family size, county, and program requirements

NDHFA DCA Program

DCA is one of two DPA programs offered by NDHFA. This program provides low-income buyers with affordable mortgage loans that include down payment and closing cost assistance. Buyers may receive 3% of the first mortgage loan in the form of a credit toward the out-of-pocket cash requirement, which can be used for down payment, closing costs, and prepaid items.

DCA requirements include the following:

• DCA cannot be used in conjunction with any other down payment assistance program
• Must meet income limits, which vary based on county and household size
• Only one or two-unit properties (one unit must be occupied by the borrower)
• Homebuyer must complete a homeowner education course

NDHFA Start Program

Through the Start program, low- to moderate-income buyers can receive affordable mortgage loans with assistance of 3% of the first mortgage loan in the form of a credit toward the out-of-pocket cash requirement, which can be used for down payment, closing costs, and prepaid items.

Start requirements include the following:

• Start cannot be used in conjunction with any other down payment assistance programs
• Can only be used on one or two-unit properties (one unit must be occupied by borrower)

NDHFA CHAP Program

The Community Land Trust Homebuyer Assistance Program (CHAP) is an NDHFA program funded through the federal HOME Investment Partnerships Program. It provides eligible low-income homebuyers with up to $70,000 in combined down-payment, closing-cost, and direct purchase assistance when buying an eligible single-family home through a participating community land trust. The assistance is secured by a written agreement and a recorded declaration of lien interest. Funds can be used toward down payment, closing costs, and eligible direct purchase financing.

CHAP requirements include the following:

• Funds are provided without accruing interest, and repayment is deferred until the home is sold, transferred, refinanced, or a compliance violation
• Affordability period depends on the amount of assistance:
  • Less than $25,000: 5 years
  • $25,000 to $50,000: 10 years
  • More than $50,000: 15 years
• Household must qualify as low-income with total household income at or below 80% of area median income (AMI). This is the midpoint of local earnings for an area, calculated by the U.S. Department of Housing and Urban Development.
• Buyer must occupy the property as the principal residence
• Buyer must purchase the home through a participating community land trust within the approved service area
• Purchase price must comply with applicable HOME homeownership value limits
• First mortgage should be fixed-rate, and fully amortizing over 30 years
• Completion of homebuyer education course
• Resale price is restricted to preserve affordability for future low-income buyers

Beyond NDHFA’s statewide programs, several North Dakota cities and counties have established their own DPA programs. Many of these can be stacked with NDHFA assistance. That means some eligible buyers may be able to combine multiple programs and significantly increase their total help.

This can help them to cover their down payment, closing costs, or simply have a little left over as a financial cushion.

McKenzie County down payment assistance program

McKenzie County sits in western North Dakota at the heart of the Bakken oil formation, where an energy boom has reshaped the local economy and driven home prices well above the state average. Watford City serves as the county seat and has grown rapidly to keep pace with the influx of oil and gas workers, while the surrounding badlands terrain sets the county apart from the flatter farmland found in much of the rest of the state.

McKenzie County down payment assistance program includes:

JDA Housing Down Payment Assistance Program: The Job Development Authority (JDA) Housing Down Payment Assistance Program is intended to encourage the construction and purchase of single-family homes in McKenzie County. Homebuyers may receive 10% or up to $40,000 in down payment assistance. The funds are structured as a five-year second mortgage, which is forgiven if the buyer satisfies the five-year occupancy commitment.

Program details and requirements include:

• Funding available to both first-time and repeat buyers
• No income requirement, but must provide proof of qualification by a lending institution licensed in North Dakota
• Assistance can only be used toward down payment
• Borrowers may receive up to $40,000 for newly construction homes and up to $15,000 for an existing home
• Buyer must occupy the home as a primary residence for five years
• Repayment is required if the buyer does not occupy the home as required
• Homes must be located in McKenzie County and be “stick” built in place, modular build or a manufactured home affixed to a lot with a permanent foundation
• Actual assistance amount is calculated on the appraised value or purchase price of the home (whichever is lower)
• Funds subject to availability and awarded on a first-come, first-served basis

Dunn County down payment assistance program

Dunn County sits in western North Dakota within the Bakken oil formation, where energy development has brought jobs and growth to a county historically defined by ranching and farming. Manning serves as the county seat, and the surrounding badlands terrain gives the area a rugged, wide-open feel that sets it apart from North Dakota's flatter farmland further east.

Dunn County down payment assistance program includes:

Dunn County Make it Home Down Payment Incentive Program (DPI): The Make it Home program, managed by the Dunn County JDA, provides down payment grants, structured as five-year forgivable loans. Buyers looking to purchase a home in Dunn County may receive 12% of the appraised value of the home up to $40,000 in assistance.

Program details and requirements include:

• No income verification required for this DPA program
• No purchase price limits
• Funds can only be used toward down payment
• Property must be located in Dunn County and be your primary residence for a minimum of five years
• Home must be financed through a North Dakota lending institution
• 4% incentive up to $10,000 on existing homes; 6% incentive up to $20,000 on newly built homes; and 12% incentive up to $40,000 on newly built homes when special assessments are assessed

These are the main down payment assistance programs available across North Dakota. However, there may be more programs available to you based on your location in the state or your occupation.

For instance, some towns or cities may offer down payment assistance specifically for first responders or teachers. Make sure to do your own research to see if there is a program that may be right for you. And be aware that certain programs may only be available until all of the funding is used.

How to apply for North Dakota down payment assistance

The application process for different DPA programs may change. However, some general application steps include:

1. Check your eligibility. Review income limits, credit requirements, and first-time buyer status at ndhousing.nd.gov. For local programs, contact the relevant city or county housing office.  
2. Find a participating lender. NDHFA programs are only available through approved lenders in their network.
3. Get pre-qualified. Your lender reviews your income, credit, and debts to determine which programs you may qualify for to receive funding.
4. Complete homebuyer education. Enroll in an approved homebuyer education course and keep your completion certificate for closing.
5. Find your home. Work with a licensed agent to locate a qualifying North Dakota property. Your lender will confirm if it meets program requirements.
6. Close on your home. Your lender packages your first mortgage and DPA together. Assistance funds are applied at settlement.

North Dakota down payment assistance FAQs

^{Program details reflect August 2026 information. Down payment assistance programs are subject to change and depend on current funding availability. Always confirm income limits, eligibility requirements, and program details with your lender or the applicable program administrator before applying.}

^{*Credit up to $6,000 maximum. Due to maximum seller concession rules applicable to purchase loan transactions, this credit could be less than $6,000 in some cases where other concessions have been made to the consumer.}