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3 Reasons Your Bank Should Offer Financing for the Purchase of Governor's Houses


A lender's roster of home loan products probably includes fixed-rate mortgages, construction loans, home-equity loans, lines of credit and a host of other products. The Governor's House program from SDHDA is one homeownership opportunity that you should promote to your customers or members.

Here are three reasons promoting Governor's Houses can be a positive influence on your institution's brand.


In a world where financial institutions in every community boast slightly lower rates, the "best" customer service staff and "special promotions" like fee cuts and minor discounts, it can be hard to differentiate yourself from competitors in your marketplace. Your product offerings can be a strong case for doing that. Offering financing for programs like the Governor's House sets you apart and shows your willingness to invest in affordable, energy-efficient home purchases and community development.


One key factor of every Governor's House is a concerted effort to make the homes energy-efficient for the homeowner(s). It's built right into the design with each home being ENERGY STAR certified. To earn ENERGY STAR certification, a new home must meet strict requirements set by the U.S. Environmental Protection Agency. ENERGY STAR certified homes are designed and built to standards well above most other homes on the market today, according to the EPA.

A lender that promotes lending for the purchase of a Governor's House says to community members, "I care about your budget and helping to reduce the strain on energy consumption." It's a strong value proposition both for consumer affordability and for your own consciousness of energy waste and environmental concerns.


Pursuing the dream of homeownership is still a reality for many South Dakotans and the Governor's House program can provide that feeling of accomplishment (without the exorbitant price tag). A bank or credit union that advertises as a participating lender for this program exhibits a brand that cares about fulfilling homeownership dreams for its community members. This sort of sentiment toward your institution's brand can work wonders for endearing yourself to potential customers or members looking for additional financial products and services down the road. 

About the Governor’s House Program

The Governor’s House program provides low-cost, low-maintenance homes for income-qualified individuals and families in South Dakota. Each ENERGY STAR-certified 1,008-square-foot or 1,200 square-foot house is built by prisoners at the Mike Durfee State Prison in Springfield and transported to home sites across South Dakota. These off-site stick-built homes should be treated the same as stick-built homes for financing.

Energy Efficiency Features:

  • Air source heat pump to heat and cool the home
  • 2x6 exterior walls with R-21 fiberglass batt insulation and an additional 1-1/2” of XPS foam on the exterior for a total wall R-value of R-28.5
  • R-60 loose fill blown attic insulation
  • Vinyl high performance casement window with .27 U-rating
  • 95% + efficient gas force air furnace or option electric forced air furnace
  • .93 EF electric hot water heater
  • Heat Recovery Ventilator that provides continuous fresh air to home while recovering up to 65% of energy from stale exhaust air

SDHDA Governor's House Program | Learn More

Topics: Lending

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