South Dakota mortgage rates

Mortgages in South Dakota

The state offers a variety of programs for both first-time homebuyers and repeat buyers who need a little help buying a new home or renovating their current place. The South Dakota Housing Development Authority (SDHDA) also has down payment assistance programs that are available for everyone.

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First-Time Homebuyer

The state offers a variety of programs for both first-time homebuyers and repeat buyers who need a little help buying a new home or renovating their current place. The SDHDA also has down payment assistance programs that are available for everyone.

First-Time Homebuyer

SDHDA’s First-Time Homebuyer Program offers homebuyers low, fixed interest rate mortgage loans and cash assistance.

To qualify for this home loan program, you’ll have to be a first-time homebuyer. SDHDA includes anyone who hasn’t owned a home in the last three years in the definition of a first-timer. However, it does waive the “first-time buyer” requirement for certain veterans — your lender can help you determine if you meet the eligibility.

You’ll also have to meet the income limits, and the purchase price of your home cannot exceed $275,000.

Repeat Homebuyer Program

If you already own a home or your income is higher than the first-time homebuyer program’s income limits, the SDHDA has a Repeat Homebuyer Program. Your annual income must fall under $93,360 for a two-person household and below $105,420 for families of three and more. You’ll also have to keep the purchase price of the home under $336,000 and have a minimum credit score of 620.

Loans through the repeat buyer program feature low, fixed rates with down payment and closing cost assistance, reduced mortgage insurance and less paperwork than you face in the usual homebuying process.

More: Use these savings accounts to build up your down payment.

Community Home Improvement Program (CHIP)

CHIP provides low-interest loans for eligible borrowers to improve or repair their current single-family home. With fixed interest rates of 2.9%, these loans have minimal costs involved in securing the loan and then feature level monthly payments.

To qualify, you’ll have to fall within the following income thresholds: $90,360 for two-person households and $108,920 for households of three and more.

You can use your loan for home improvement projects ranging from additions, accessibility improvements, health and safety upgrades, and general updates. To apply for one of these loans, reach out to one of the SDHDA’s participating lenders.

Down Payment Assistance

When you take one of the SDHDA’s first loans, you also may be eligible for a Fixed Rate Plus loan for down payment and closing costs assistance. You can borrow up to another 3% of the amount of your first mortgage at a 0% interest rate, which you’ll have to pay back only when you sell your house. There are no payments or additional fees. As with the SDHDA’s other programs, reach out to your lender to find out if you qualify for this assistance and get help with your application.

Governor’s House Program

This program was designed to provide access to affordable housing for low- to moderate-income seniors with disabilities. To qualify, you’ll have to meet the income thresholds of $54,460 for one- and two-person households or $62,240 for households of three more. Your net worth must be under certain amounts, depending on your age bracket, and the house must be your only residence.

If you qualify, you’re eligible to buy either a new two- or three-bedroom home, at prices ranging from $50,200 to $57,900. You’ll have to secure the lot, obtain a building permit, lay the foundation, hook up utilities and provide your own floor coverings and appliances. In exchange, your home will be built by members of the Governor’s Inmate Training Program, who are learning skills and trades.

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About the Author

Sigrid Forberg

Sigrid Forberg

Staff Writer

Sigrid is a staff writer with MoneyWise. A graduate of Carleton University's journalism program, she spent the better part of the last six years writing about business and retail. In her spare time, she enjoys reading, baking and riding her bicycle.

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