2024 FHA Loan Limits in North Dakota

FHA loans, which are issued by private lenders and insured by the Federal Housing Administration (FHA), offer the benefits of low down payment and credit score requirements. But there are limits to how much you can borrow with an FHA loan in North Dakota and across the U.S.

In most North Dakota counties, single-family home FHA loan limits in 2024 are $498,257. In Billings and Stark Counties, however, the limit is $508,300.

North Dakota FHA loan limits by county

How are FHA loan limits determined?

FHA loan limits adjust annually based on changes to home prices and housing affordability. The National Housing Act requires the FHA to limit loan amounts to 115% of the median home price in each local area, and subject to a “floor” and “ceiling” amount based on a percentage of the national conforming loan limit.

The Federal Housing Finance Agency set the 2024 conforming loan limit for conventional mortgages at $766,500. For most states, the FHA sets the floor at 65% of the conforming loan limit (or $498,257) and the ceiling at 150% of that limit (or $1,149,825).

In most North Dakota counties, the FHA loan limit is $498,257. But in Billings County, for example, the limit is $508,300. That’s because the estimated median home price in Billings County for 2024 is $442,000, and 115% of that median price amounts to $508,300.

How to qualify for an FHA loan in North Dakota

To get an FHA loan in North Dakota, you’ll need to meet certain eligibility requirements set by the FHA. The lender issuing the loan is also permitted to set additional requirements, including stricter credit standards. At a minimum, you must:

→ Have a valid SSN. The FHA requires you to have a valid Social Security number and be either a citizen or lawful permanent resident of the U.S.
→ Have a minimum 500 credit score. If you’re making a 10% minimum down payment, you can qualify with a credit score of 500 or greater. You’ll need at least a 580 credit score to qualify to put 3.5% down.
→ Have a DTI ratio of no more than 43%. Your debt-to-income ratio, which is the share of your gross income spent on minimum debt payments, generally can’t exceed 43%. Some lenders may allow a higher DTI if you’ll have enough cash reserves left over after closing.
→ Borrow no more than $498,257 in most counties. In most areas of North Dakota, you can’t get an FHA mortgage for more than $498,257. In Billings and Stark Counties, you can borrow up to $508,300. If you’re purchasing a more expensive home with an FHA loan, you’ll need to make a larger down payment to cover the difference.
→ Funds for upfront costs. You’ll need to put down 3.5% of the home sale price or appraised value, whichever is less. If you have poor credit, a 10% down payment is required. You’ll also need to cover closing costs, which averaged 1% of the sales price in North Dakota in 2021, according to the NAR. In addition to your own savings, you can use gift money or funds from down payment assistance programs.
→ Pay required mortgage insurance premiums. Mortgage insurance protects the lender against losses if you fail to make payments. In North Dakota, you’ll need to pay 1.75% of the loan amount upfront plus annual mortgage insurance premiums between 0.15% and 0.75% of the loan amount.
→ Provide your income and employment history. FHA loans don’t come with minimum income requirements unless your lender has additional standards, but you’ll need to show proof of income and your employment history for the last two years when applying for an FHA mortgage.
→ Intend to reside in the home securing your mortgage. At least one of the borrowers applying for an FHA loan will need to live in the property as their primary residence for a minimum of one year. You can’t use an FHA loan for a vacation home, and you can only use an FHA loan to buy an investment property if you live in one of the units.

Buying a multifamily property with an FHA loan

FHA loans offer the opportunity for homeowners to generate rental income to offset their mortgage payments. You’re allowed to buy a multi-unit property with an FHA loan and rent the other units as long as you live in one of the units as your primary residence. You can use the projected rental income to qualify for a larger FHA loan and toward your own housing expenses. This strategy is known as house hacking, and some homeowners use it to kick-start a career in real estate investment.

To buy a multifamily home with an FHA loan, you’ll need to have enough cash reserves left over after the sale to cover at least one mortgage payment. You’ll also need to meet all the requirements for single-family FHA loans, and your mortgage loan can’t exceed the FHA loan limits listed below for most North Dakota counties. Note: you can qualify for slightly larger loans in Billings and Stark Counties.

FHA lenders in North Dakota

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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

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