North Dakota Mortgage Overview
North Dakota is sparsely populated which is
great for people who want space in beautiful land. The cost of living is low in
North Dakota with the average home price around $194,000. With less than 1
million people living there and 62 percent of homes owner-occupied, there are
plenty of options to buy a home in North Dakota.
If you're thinking of becoming a North
Dakota homeowner, here are your options:
North Dakota conventional loans
You need 'good
credit' for a conventional loan, but that means 660 or higher. With a 36
percent debt ratio, you can be on your way to owning a home with low interest
rates. First-time buyers need 3 percent down. If you've owned a home before,
you need 5 percent. All loans with an LTV higher than 80 percent require PMI,
but only until you pay the balance down to less than 80 percent of the value.
North Dakota FHA loans
Borrowers with less
than perfect credit need just a 580 credit score and a 3.5 percent down payment
for an FHA loan. If you have a 500 - 579 score, you can get a loan with 10
percent down. FHA loans allow higher debt ratios up to 50 percent, but you'll
pay mortgage insurance for the life of the loan. The rates are affordable, and
it's a great way to own a home if you don't qualify for conventional financing.
North Dakota VA loans
Veterans don't need a
down payment for a VA loan from a North Dakota VA lender. With a 620 credit
score and proof you can afford the new mortgage plus your existing debts and
the cost of living, you're on your way to homeownership. VA loans don't have mortgage
insurance, but veterans pay an upfront funding fee.
North Dakota USDA loans
North Dakota has
plenty of rural areas to live. If you make less than 115 percent of the median
income for your area, the USDA loan may be what you need. Borrowers need a 640+
credit score and a max 41 percent debt ratio. There's no down payment needed,
but you'll pay mortgage insurance for the loan's term.
Programs in North Dakota
The FirstHome program is for
borrowers who meet certain income
guidelines. It's a first mortgage program with low interest rates, making
it easier to buy your first home. You may combine the program with a down
payment assistance program if needed.
The Down Payment and Closing Cost
Assistance Program provides money to get you into a home when you don't have
the down payment. You must qualify for a loan program including the FirstHome
program to qualify.
The START program is for low-to-moderate
income families who can afford a loan payment with down payment and closing
cost assistance. The program has low interest rates and fixed terms. You may
not combine it with any other down payment assistance program.