Mortgage in North Dakota
While North Dakota may not be the first state that comes to mind when moving, it offers quite a few benefits for prospective residents. If you want beautiful scenery, friendly people, and fantastic job opportunities (in certain areas), North Dakota could be the perfect place for you! And, with an average home price around the national median , it's not a particularly expensive place to call home. If you're thinking of moving to this state, use our North Dakota mortgage calculator to see how much home you can afford.
Mortgage Options in North Dakota
Most North Dakotans will choose from one of three mortgage types.
- North Dakota conventional mortgage: Many North Dakota homes will fall under the conforming loan limits (about $585,000). Therefore, most home purchases will require a bare minimum of 3% down and a credit score of at least 620. Banks are free to set more stringent requirements, however.
- North Dakota FHA mortgage: For properties under the North Dakota FHA limits, borrowers can get this loan for as little as 3.5% down and a credit score of just 580. For borrowers with 10% down, a credit score of 500 is sufficient. FHA loans always require PMI.
- North Dakota VA mortgage: The VA backs loans with no down payment and no private mortgage insurance. Like most VA services, these loans are only available to current military members and veterans.
If you're a first-time homebuyer looking to move to North Dakota, you may not have the resources necessary to get one of the above loans. Fortunately, the state offers assistance in these cases!
First-Time Homebuyer Programs in North Dakota
The North Dakota Housing Finance Agency administers the first-time homebuyer programs. There are three programs you should know about.
North Dakota's FirstHome program offers first-time homebuyers a low-interest 30-year loan. These rates are often quite a bit lower than what you could obtain from a bank.
Eligibility Criteria: Purchase price and income limitations apply.
DCA
The DCA program offers down payment and closing cost assistance to eligible homebuyers. This loan equals 3% of the full mortgage amount. The state will forgive the loan after eight years.
Eligibility Criteria: Borrowers must meet income limits. The home cannot be within a 100-year flood plain. Finally, borrowers must complete a home education class.
Start
Like the DCA program, the Start program provides down payment and closing cost assistance up to 3% of the mortgage amount. It is a forgivable loan as well.
Eligibility Criteria: Borrowers must use this in conjunction with a FirstHome mortgage.
North Dakota Mortgage Calculator: How Much Home Can You Afford?
North Dakota is one of the most beautiful states, thanks to an abundance of mountains, rivers, and natural land. It also has a vibrant, healthy job market that continues to attract investment and job seekers from all over the nation. If you're considering moving to North Dakota, see how much home you can afford with our intuitive, easy-to-use North Dakota mortgage calculator!
