Why the First Time Home Buyers Program Is Important?

Most programs set income limits based on area median income (AMI). In Fargo-Moorhead, that typically ranges from 80% to 120% of AMI depending on household size. For example, in Cass County, ND, a family of four may qualify up to roughly $80,000 annual income, while in Clay County, MN, limits can be around $95,000. Always check your county’s latest AMI chart to confirm eligibility.

Generally, these are true first-time buyer programs—meaning you must not have owned a home in the last three years. Some exceptions apply for displaced homemakers or veterans returning from service. If you’ve owned rental or investment property only, you often still qualify. Be sure to ask your lender or housing agency about any “recent homeowner” carve-outs in your state’s rules.

Conventional programs (HomeReady/Home Possible) usually require a minimum 620 credit score and 3% down. FHA loans ask for 580+ to access 3.5% down; scores as low as 500 may qualify with 10% down. VA and USDA loans offer 0% down but have service or location requirements. State programs often overlay their own 3% assistance on top of these products.

This forgivable loan offers up to $35,000 for families where no parent or guardian has owned a home. It’s interest-free and deferred—meaning no monthly payment—and forgiven after 10 years of owner-occupancy. If you sell or refinance before then, a prorated repayment is required. You’ll also need a 620+ credit score and complete a state-approved homebuyer class.

Expect 60–90 days from initial pre-approval to closing. First, get pre-qualified by a participating lender, submit income and asset documentation, and complete a homebuyer education course. Once your file is underwritten and approved, you’ll select a home, finalize loan paperwork, and close. State programs may require additional steps—like separate application forms or compliance checklists.

Most assistance is grant-style or deferred forgivable loans, but check for recapture clauses: if you sell within the forgivable period, you may repay a prorated amount. Closing costs still apply unless rolled into a loan or covered by seller concessions. Always review program disclosures and ask your lender about any lien placed on the property.

Visit your state housing agency’s website (e.g., Minnesota Housing Finance Agency or North Dakota Housing Finance Agency) to download lists of approved lenders. You can also call Modern Market REALTORS® at the contact link above—we partner with top local lenders and can make an introduction to streamline your application.