Down Payment Path

Down Payment Assistance Programs in South Dakota

South Dakota offers several programs to assist homebuyers with down payments and closing costs. These initiatives are designed to help both first-time and repeat buyers, making homeownership more accessible across the Mount Rushmore State.

SDHDA Fixed Rate Plus Program

The Fixed Rate Plus Program, offered by the South Dakota Housing Development Authority (SDHDA), provides financial assistance for down payments and closing costs.

  • Offers up to 3% of the loan amount as assistance.
  • Provided as a second mortgage with a low interest rate and a 10-year repayment term.
  • Pairs with SDHDA’s affordable fixed-rate mortgage options, including FHA, VA, USDA, and conventional loans.
  • Available to buyers meeting income and purchase price limits.

Governor’s House Program

The Governor’s House Program offers affordable housing solutions paired with down payment assistance for eligible buyers.

  • Designed to help moderate-income households purchase newly constructed homes.
  • Assistance is provided to cover a portion of the down payment or closing costs.
  • Eligibility includes income restrictions and other requirements.

USDA Rural Development Loans

For buyers in rural South Dakota, the USDA Rural Development Loan offers no down payment financing options.

  • Available to low- and moderate-income buyers in USDA-eligible rural areas.
  • Features flexible credit requirements and competitive interest rates.
  • Can be combined with SDHDA programs to cover closing costs.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) program provides significant tax savings for homebuyers, reducing the long-term cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their annual mortgage interest.
  • Can be paired with SDHDA loans and down payment assistance programs.
  • Income and purchase price limits apply but accommodate a wide range of buyers.

Local Assistance Programs

Many cities and counties in South Dakota provide additional resources for homebuyers to help cover upfront costs.

  • Programs in areas like Sioux Falls, Rapid City, and Aberdeen often provide grants or low-interest loans for down payments and closing costs.
  • Some local initiatives target buyers in revitalization zones or offer benefits for public service workers such as educators and first responders.
  • Eligibility and funding levels vary by location and program specifics.

South Dakota’s down payment assistance programs are tailored to reduce financial barriers, making homeownership more attainable for a wide range of buyers. Whether you’re purchasing your first home or upgrading, these resources can help you achieve your dream of owning a home in the Mount Rushmore State.