First-Time Homebuyer Programs in South Dakota

If you crave small-town living and spacious homelands, then you should consider settling down in South Dakota. Plus, there’s the added appeal of the tax benefits and cost of living within the region.  

All of this makes South Dakota an excellent place to purchase a new home, especially for first-time homebuyers and it is a great place to build a house. And if you need help financing your first home, the state offers several assistance programs available that may ease the process.

Below is a list of statewide programs to get you started. When you begin your research, be sure to visit the program-specific websites for detailed information and how to apply for funds. You may find that homeownership is more within reach than you think.

Who Qualifies as a First-Time Homebuyer in South Dakota?

The South Dakota Housing Development Authority (SDHDA) defines a first-time homebuyer as any individual who has not owned a primary residence during the previous three-year period. Homes that are not permanently affixed to a foundation, including mobile homes, do not qualify as previous homeownership. In some cases, qualified veterans may be eligible for a waiver for first-time buyer requirements. When researching each program, follow the website link to read additional eligibility guidelines.

First-time homebuyer programs are typically available through national funds but may also be dispersed by state and local governments and nonprofit organizations. Particularly for residents who can make mortgage payments but need a boost with down payment and closing costs, these programs may provide the perfect amount of assistance that homebuyers need to afford their dream home in South Dakota.

Statewide First-Time Buyer Programs

The following programs are available statewide to South Dakota residents.

SDHDA First-Time Homebuyer Program

The SDHDA First-Time Homebuyer Program offers low interest, fixed-rate mortgage loans and financial assistance for new homebuyers in South Dakota. To qualify, an individual must meet the requirements of a first-time buyer and must not exceed income and purchase price limits. Visit the program’s website for details and to learn how to apply.

Statewide Non-First-Time Buyer Programs

While the above program is strictly available for first-time homebuyers, other statewide programs assist individuals looking to move from one home they have owned into another.

SDHDA Repeat Homebuyer Program

For repeat buyers, the SDHDA Repeat Homebuyer Program offers low fixed-rate mortgage products, down payment and closing cost assistance and discounted mortgage insurance for qualified borrowers. Other eligibility factors may apply, including income and purchase price limits and credit requirements. Be sure to check out the website and contact a participating lender for more information.

SDHDA Fixed Rate Plus Loan

To help South Dakotans achieve their dream of homeownership, the SDHDA provides down payment and closing cost assistance through the SDHDA Fixed Rate Plus loan. This loan offers an amount up to 3 percent of the borrower’s first mortgage to put toward closing costs. Qualified applicants may receive this assistance as a loan with a zero percent interest rate and no additional fees. Other eligibility restrictions may apply, so make sure to visit the SDHDA website and ask your participating lender for details.

GROW South Dakota

Additionally, certain nonprofit organizations are assisting new homebuyers with purchasing their dream home, including GROW South Dakota. This organization offers down payment and closing cost assistance in the form of a zero percent deferred loan to income-qualified borrowers. Visit the GROW South Dakota website for more informationon eligibility requirements and to learn how to apply.

Homebuyer Programs by Location

In addition to statewide programs, there may be homebuyer assistance programs based in different cities and regions of a state, such as the following local program in South Dakota.

Brown County

Residents of Brown County, which includes the cities Aberdeen, Columbia and Groton, may be eligible to apply for financial assistance through South Dakota’s Homes Are Possible Inc. (HAPI). HAPI currently offers a non-forgivable loan in the amount of $4,000 for qualified applicants looking to purchase a home in Brown County to assist with down payment or closing costs.

Additionally, HAPI offers Housing Opportunity Funds to residents outside of Brown County who meet specific income limits and other eligibility requirements. These funds are offered as a $4,000 forgivable grant to assist with down payment and closing costs. See the HAPI website for details and to find out if you may qualify.

Buy Your Dream Home in South Dakota

In the Mount Rushmore State, you will always find gorgeous skies and scenery. Whether you see yourself purchasing your first home amid spacious natural lands or get excited about living in a charming small town, your dream home is waiting for you in South Dakota. Hopefully these programs serve as a start to your research and help you to secure your new home in this beautiful state.

The links on this site were researched by NewHomeSource. This is as cohesive a list as possible. Individual homebuyers should contact entities to fully understand requirements and processes.