Down Payment and Closing Cost Assistance - DCA

What is Down Payment and Closing Cost Assistance - DCA?

Down Payment and Closing Cost Assistance - DCA is a deferred second loan for homebuyers in Statewide, North Dakota.

• NDHFA 0% deferred second mortgage of up to 3% of the first mortgage amount (max ~$10,000) with no monthly payments; balance due on sale, refinance, payoff, or non-owner-occupancy. Standard tier. Pairs with NDHFA FirstHome or HomeAccess first mortgage. Statewide.
• NDHFA Down Payment & Closing Cost Assistance - DCA is the North Dakota Housing Finance Agency's standard tier deferred-payment second mortgage program. Eligible homebuyers may receive a 0% interest second mortgage of up to 3% of the first mortgage amount (typically capped at $10,000) with NO monthly payments. The full balance is due on sale, refinance, payoff of the first mortgage, transfer of title, or non-owner-occupancy. Funds may be used for down payment and/or closing costs. DCA pairs with NDHFA's FirstHome (FTHB-required) or HomeAccess (non-FTHB / targeted-buyer) bond first mortgages.
• Funding comes from State and Bond.

How much assistance does it provide?

Down Payment and Closing Cost Assistance - DCA provides assistance worth 3% of the purchase price, as set by the program.

• The program asks buyers to contribute $500 minimum borrower investment from own funds (gifts permitted from eligible donors per agency / GSE rules).
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Down Payment and Closing Cost Assistance - DCA is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Full balance due on sale, refinance, payoff of first mortgage, transfer of title, or property ceasing to be borrower's primary residence. No monthly payments during life of first mortgage.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Down Payment and Closing Cost Assistance - DCA is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Down Payment and Closing Cost Assistance - DCA limits household income to $110,000.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Down Payment and Closing Cost Assistance - DCA caps the purchase price at $616,111.

• Eligible property types include Single-family detached, condominium, townhouse, PUD and manufactured home on permanent foundation per servicer overlays. 1-unit owner-occupied primary residences.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

Down Payment and Closing Cost Assistance - DCA names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Down Payment and Closing Cost Assistance - DCA serves buyers purchasing in Statewide, North Dakota.

• The program targets specific areas: Federally designated IRS targeted census tracts (per Section 143) where NDHFA waives FTHB requirement and applies higher income / purchase price limits. Williston Basin / Bakken oil-patch counties also receive higher income limits under NDHFA's energy-impact county classification.

How do you apply?

Applications for Down Payment and Closing Cost Assistance - DCA go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through NDHFA-approved homebuyer education provider. Acceptable providers include Framework, eHome America, NeighborWorks ND-affiliated agencies (Lewis & Clark Development Group, Community Action Partnership), and HUD-approved counseling agencies operating in North Dakota..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Reserved by NDHFA-approved participating lender via NDHFA Lender Online portal at the time of first-mortgage rate lock., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.