North Dakota FHA Loans - Loan Benefits and Limits for ND

FHA Loans in North Dakota

Updated December 8, 2023

27,406 Views

If you’re living in North Dakota, you’re no stranger to the bitter cold, which is all the more reason you need a warm, safe place to call home. For many homebuyers in North Dakota the tricky part isn’t choosing which house to buy, but deciding on how they’re going to finance it.

Savvy buyers look to FHA loans in North Dakota because they generally require lower down payments than conventional loans, which means more money in their pocket. Keep reading to find out why a North Dakota FHA loan may be right for you.

Why choose an FHA Loan in North Dakota

Although North Dakota's population density is one of the smallest in the country, more than $20 million was lent to North Dakota residents in FHA loans as of April 2019. An FHA loan has been a reliable home financing option among residents, and could be the best option for you.

Benefits of having an FHA Loan in ND

FHA loans are great for first-time homebuyers, especially those who can’t or don’t want to put down a large down payment.
FHA mortgage rates are typically lower than conventional mortgage rates.
FHA down payment and credit score requirements are typically lower than conventional loans
Sellers can contribute up to 6% of the purchase price or appraised value (whichever is less) towards the buyers’ closing costs.
FHA loans are assumable

FHA Loan Limits in North Dakota

Since there are maximum FHA loan amounts for North Dakota FHA loans, you'll need to have some idea of how much you can borrow before you start shopping. The maximum is adjusted every year and is currently $498,257 for most counties. See the table below to check your county's FHA loan limit.

North Dakota FHA Loan Limits by County

County	FHA Loan Limit
Billings	$508,300
Stark	$508,300
All other areas	$498,257

Are You Eligible for an FHA Loan in ND?

You may be eligible for an FHA loan, if you:

Have 2 years of steady employment, preferably with the same employer.
Have had steady income (or increasing income) in the past two years.
Have had less than two 30-day periods of late payments on your credit report.
Have declared bankruptcy no less than two years ago and have maintained good credit since.
Have not been a party in a foreclosure for at least three years and have maintained good credit since.
Anticipate your mortgage payment will be equal to or less than 30% of your gross income.

Learn More About FHA Loan Requirements

Credit Requirements
Employment Requirements
Mortgage Insurance Premium Requirements

What Do You Need to Apply for an FHA Loan in ND?

Buyers must be able to provide the following information and documents as requested by lenders:

The addresses of all your residences over the past two years.
The names of your employers over the past two years.
W2's for the past two years and current paycheck stubs.
Your current gross monthly salary.
Your Social Security Number.
Names, addresses, and account numbers with balances on all checking and savings accounts.
Addresses and loan information of any other real estate you owned.
Self-employed individuals will need to provide personal tax returns for the past two years and a current income statement and balance sheet for the business.
Students will need to provide evidence of enrollment. If you have student loans, you need to provide verification information.

Note: Facts and figures sourced from the latest statistics available at the time of this writing including data from the United States Department of Labor, United States Census Bureau and the United States Department of Housing and Urban Development.