Start Program

The North Dakota Housing Finance Agency (NDHFA) created the Start Program to help make the home purchasing process more affordable for low- to moderate-income homebuyers. With this program, income-eligible individuals can apply for home mortgages that come with down payment and closing cost assistance.

The purpose of this program is to make funds available to eligible applicants who are interested in purchasing a home but need financial help to pay the upfront costs, which include the down payment, as well as the closing costs and prepaid items required to obtain homeownership. These expenses can add up to a substantial amount, and the inability to pay it might keep people stuck in a renters trap.

Available Assistance
The Start Program works in conjunction with NDHFA’s first mortgages (a FirstHome, HomeAccess, North Dakota Roots, Major Home Improvement, or Targeted Area loan). Eligible applicants can receive up to 3 percent of the total purchase price, which comes in the form of a credit to borrowers at the time of closing. The program cannot be used in conjunction with other down payment assistance programs. Start assisted first mortgages have a slightly higher interest rate than FirstHome mortgages, but both, 30- and 40-year loan terms are available with the Start program.

Eligibility Requirements
In order to be eligible for the Start Program, applicants must meet all the requirements for their NDHFA first mortgage. It is only available to those whose annual household income does not exceed the program’s set limits, based on the family size and location of the home being purchased. All applicants are required to meet normal credit underwriting standards and must be able to contribute at least $500 toward the transaction from their own cash assets.

Property Guidelines
 This home must also fall within the programs’ maximum purchase price limit, and serve as the applicant’s primary residence. 
 
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but States and Local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price and income limits.