South Dakota - Government Backed Loans

The South Dakota Housing Development Authority (the "Authority") was created in 1973 by the State Legislature as an independent public instrumentality to exercise essential public functions.

The Authority has traditionally been involved in issuing tax exempt bonds for the purpose of financing and developing both single-family and multifamily mortgage loans; the delivery of housing programs made available through the US Department of Housing and Urban Development (HUD); and the issuance of housing tax credits made available through the US Department of Treasury, Internal Revenue Service (IRS).

Purchase Programs

First-Time Homebuyer Program

The First-Time Homebuyer Program offers homebuyers looking to purchase their first home assistance in the form of below market, fixed-rate mortgage loans. There are three options to be used with the First-Time Homebuyer Program: the 30-year Fixed Rate, which offers a 5.375% interest rate, the Starting Step Rate Option at 4.375% and the Fixed Rate Option Plus, which offers a 5.85% rate. The Fixed Rate Option Plus includes cash assistance, which is to be used toward a downpayment and closing costs.

Continue reading about First-Time Homebuyer Program.

Loan Assistance Program - LAP

LAP offers first-time homebuyers downpayment and closing cost assistance. Loan terms range from 5 to 10 years, with amounts ranging from $2, 000 to $10, 000. In order to qualify, homebuyers must not have an income over 80% of the area median income.

Continue reading about Loan Assistance Program.

Employer Mortgage Assistance Program - EMAP

EMAP works in partnership with participating employers to assist first-time homebuyers in purchasing a home in the form of a second mortgage. This second mortgage ranges in amount from $600 to $6, 000, and is to be used toward a downpayment and closing costs. If a homebuyer qualifies for a First-Time Homebuyer loan, income limits and purchase price limits apply. Otherwise, only income limits apply.

Continue reading about EMAP.