Paying for a home isn't always a one-person or one-family job. There are several funding options available to South Dakotans when it comes to providing a place to live for your household. From assistance programs to housing opportunities, there are many programs to consider.
Here are five South Dakota Housing Development Authority (SDHDA) programs of which you should be aware.
This SDHDA program has seen more than 2,500 affordable, reasonably sized homes made available to South Dakotans in need in the past two decades. The Governor's House program is geared toward income-qualified individuals and families. While the future homeowner is responsible for purchasing a lot, a building permit, a foundation, utility hookups and belongings for inside the home, the structure itself can be funded through the program at a reasonable cost.
Many potential homebuyers cannot proceed with making a home purchase due to the required downpayment. But what if your downpayment cost could be gifted? That's the aim with the SDHDA fixed-rate plus interest rate option, which provides a three percent financial gift. You don't have to pay the gift back—you'll just accept a slightly higher interest rate on your mortgage.
Security Deposit Assistance
South Dakota Housing funding isn't restricted to homeowners—renters have options as well. The Security Deposit Assistance program (SDAP) provides emergency funds for low-income households to prevent homelessness, as well as to help families with the "downpayment" of signing a rental agreement—the security deposit. Local housing authorities in South Dakota that currently receive SDAP funds include Aberdeen, Brookings, Huron, Madison, Mitchell, Mobridge, Rapid City and Yankton.
Community home improvement
The Community Home Improvement Program (CHIP) offers loans to households in need of home improvement. These loans are low-interest and meant for single-family dwellings. With an interest rate of 2.9% and an income cap of $82,800 for a two-or-less household and $96,000 for a three-or-more, these loans allow owners to save money, make their homes more comfortable and allow their homes to maintain or increase in value.
Mortgage credit certificate
SDHDA offers a Mortgage Credit Certificate (MCC) to eligible homebuyers in order to help decrease the amount of federal income tax paid—as much as $2,000 per year for the life of the loan. It’s a chance to grab some extra disposable income just for buying a home here in South Dakota. Through this opportunity, part of your mortgage interest you pay throughout the year helps to reduce your tax bill come filing time.