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Affording a Home: How to Get Financial Assistance

Posted by South Dakota Housing Authority on Mar 3, 2016 5:25:38 PM


Whether you’re a first-time homebuyer or a second- or third-, financing can be a struggle. But you’re in luck, because the South Dakota Housing Developing Authority (SDHDA) offers financial assistance to individuals and families who qualify by meeting certain income and purchase-price standards.

Check out the variety of assistance options at your fingertips.

First-Time Homebuyer Program

If you need some help in purchasing your first home, SDHDA has a program tailor-made for first-timers. Low-interest, fixed-rate mortgages are available for eligible homebuyers that meet certain income and purchase-price standards. Participating Lenders work with SDHDA to provide these loans to residents with financial restrictions.

Click here to see if you’re eligible.

The requirements for the program include:

  • Not having owned a home in the past three years
  • A household income at or below established limits
  • A home purchase price of less than $250,200

Downpayment Assistance Program

If the idea of putting up a large chunk of your savings for
a downpayment is unnerving or if you don’t have quite enough to get the ball rolling, SDHDA offers downpayment assistance to eligible residents. Through the Fixed-Rate Plus interest rate option offered through SDHDA, a buyer can be gifted as much as 3% of the loan amount to help pay for your downpayment/closing costs.

Find a Participating Lender today.

The program was made for people who:

  • Need to maintain savings funds for other purposes
  • Are short the amount they need to afford a downpayment
  • Are open to the idea of a slightly higher mortgage interest rate

Repeat Homebuyer Loan Program

Assistance doesn’t just come for the first-timers. SDHDA offers the opportunity for assistance for repeat homebuyers as well. These loans feature a low, fixed rate, downpayment and closing-cost assistance when needed, reduced mortgage insurance and less paperwork.

Click for answers to frequently asked questions.

The requirements for the program include:

  • A minimum credit score of 620
  • A household income of less than $77,640 for a family of two and $90,580 for a family of three
  • A home purchase price of at or less than $305,800


Don’t feel alone in your home-financing process – there are major resources to you from SDHDA that will get you moving!

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Topics: Homeownership

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E-Book Download A South Dakotan's Guide to Buying Your First Home Vol. 1