First-Time Home Buyer Programs in North Dakota and Minnesota (2026)

Short answer: if you're buying in Fargo, West Fargo or Horace, look at the North Dakota Housing Finance Agency (NDHFA) programs. If you're buying in Moorhead, look at Minnesota Housing. Both offer lower-cost mortgages plus help with down payment and closing costs for buyers who haven't owned a home in the past three years.

I'm Joseph Haj, a REALTOR® licensed in North Dakota and Minnesota. Here's a plain-English rundown of what's available on each side of the river. You apply through a participating lender, not through me or the agency directly.

North Dakota programs (Fargo, Westx Fargo, Horace)

• FirstHome: a low-cost mortgage for buyers who haven't owned a principal residence in the past three years. NDHFA's June 2026 update set income limits of about $105,730 to $121,590, depending on family size, and a purchase price limit of $500,000 for a single-family home.
• HomeAccess: for buyers who don't qualify for FirstHome but are single parents, military veterans, or households with a member who has a disability or is 65 or older.
• DCA (Down Payment and Closing Cost Assistance): for lower-income buyers, worth 3% of the first mortgage amount. Homebuyer education is required.
• Start: for low- to moderate-income buyers, also 3% of the loan amount toward down payment and closing costs.
• Roots: for previous homeowners, with no income or purchase price limits.

All NDHFA programs require you to live in the home and put in at least $500 of your own cash. DCA and Start can't be combined with other down payment assistance.

Minnesota programs (Moorhead)

• Start Up: for first-time buyers (no ownership in the past three years), with income limits up to $156,100 depending on county and a purchase price limit of $472,030 outside the Twin Cities metro. Homebuyer education is required.
• Deferred Payment Loan: up to $14,000 at 0% with no monthly payment, repaid when you sell, refinance or move. Deferred Payment Loan Plus goes up to $18,000. Both are available with Start Up only.
• Step Up: for repeat buyers, or first-time buyers over the Start Up limits, with downpayment and closing cost loans up to $14,000.
• Monthly Payment Loan: up to $14,000, repaid over 15 years at the same rate as your first mortgage.

Moorhead's local incentives

• First & New: a $5,000 deferred 0% loan toward special assessments for first-time buyers of new construction, while funds last.
• New Home Property Tax Rebate: two years of property taxes refunded on brand-new homes, with automatic enrollment. It expires December 31, 2026 unless extended.

Other loan options worth asking about

• FHA loans: as little as 3.5% down with flexible credit guidelines.
• VA loans: no down payment for eligible veterans and service members.
• USDA loans: no down payment in eligible rural areas. Some smaller towns around Fargo-Moorhead may qualify, so ask your lender.
• Conventional loans: some allow as little as 3% down for first-time buyers.

What closing costs look like

Buyers typically pay lender fees, a lender's title insurance policy, recording fees and prepaid property taxes and homeowners insurance. North Dakota has no real estate transfer tax. In Minnesota, buyers usually pay the mortgage registry tax on the loan, while sellers usually pay the deed tax. Assistance programs can help cover these costs.

Your next steps

1. Talk with a lender who offers NDHFA or Minnesota Housing programs and get pre-approved.
2. Take a homebuyer education course if your program requires it.
3. Pick your side of the river. Price limits and programs differ.
4. Start touring with an agent who knows both states. Read the Fargo-Moorhead buyer guide.

Frequently asked questions

Are there first-time home buyer programs in North Dakota?

Yes. The North Dakota Housing Finance Agency's FirstHome program offers mortgages for buyers who haven't owned a home in the past three years, with income limits of about $105,730 to $121,590 depending on family size and a $500,000 purchase price limit for single-family homes, per NDHFA's June 2026 update. It can be paired with the DCA or Start programs, which provide 3% of the loan amount toward down payment and closing costs.

What first-time home buyer help is available in Moorhead, MN?

Minnesota Housing's Start Up program serves first-time buyers, with downpayment and closing cost loans up to $18,000, including a 0% deferred loan. Outside the Twin Cities metro, the purchase price limit is $472,030. Moorhead also offers a $5,000 deferred 0% loan toward special assessments for first-time buyers of new construction.

Do I have to take a homebuyer education class?

For some programs, yes. NDHFA's DCA program and Minnesota Housing's Start Up program require homebuyer education before closing. Your lender will tell you which course counts.

What closing costs do buyers pay in Fargo-Moorhead?

Buyers typically pay lender fees, title insurance for the lender, recording fees and prepaid taxes and insurance. North Dakota has no real estate transfer tax. In Minnesota, buyers usually pay the mortgage registry tax on their loan, and sellers usually pay the deed tax.

Talk with a local agent

I work with first-time buyers in Fargo, West Fargo, Horace and Moorhead and can connect you with lenders who offer these programs. Call or text Joseph Haj at 218-688-0802, or read buying vs. renting in Fargo.

Sources

• North Dakota Housing Finance Agency: Homebuyers
• NDHFA: Homeownership program eligibility limits updated
• Minnesota Housing: Buy a home
• City of Moorhead: Homebuyer incentives

Programs, rates and deadlines change. Confirm current details with the agency or your lender before you rely on them.