SDHDA Housing First-Time Homebuyer Program
The First-time Homebuyer Program by the South Dakota Housing Development Authority (SDHDA) provides low-interest fixed-rate mortgage loans and cash assistance for the down payment and closing costs for homebuyers purchasing their first home.
Who is Eligible
- You are a first-time homebuyer, meaning you have not owned a home in the past three years
- If a homebuyer owned and lived in a dwelling unit that was not permanently affixed to a permanent foundation (ie; a mobile home), it doesn’t count as previous homeownership
- Ask your lender about our Veterans Waiver to see if you qualify.
- Have an income at or below the South Dakota Housing Income Limits
- The purchase price must be $300,000 or less
Maximum Family Income By Family Size
County 2 or less 3 or more
- Brookings $86,100 99,015
- Brown 80,200 92,230
- Clay 80,000 92,000
- Codington 78,000 89,700
- Edmunds 81,900 94,185
- Faulk 82,700 95,105
- Hand 76,100 87,515
- Hanson 79,600 91,540
- Hughes 96,300 110,745
- Hyde 79,300 91,195
- Lake 81,700 93,955
- Lincoln 82,500 94,875
- Marshall 75,800 87,170
- McCook 82,500 94,875
- Minnehaha 82,500 94,875
- Pennington 76,300 87,745
- Stanley 79,900 91,885
- Sully 82,400 94,760
- Turner 82,500 94,875
- All other counties 75,500 86,825
- Repeat buyers or
- in Targeted areas 90,600 105,700
Purchase Limits Existing New Construction
- First-time homebuyers $300,000 $300,000
- Repeat buyers or
- targeted areas $366,000 $366,000
SDHDA’s Tax Credit (MCC)
SDHDA’s Tax Credit is available through a Mortgage Credit Certificate (MCC), which reduces the amount of federal income tax you pay, giving you more disposable income. With SDHDA’s Tax Credit (MCC), a percentage of your mortgage interest can be used as a dollar-for-dollar reduction in your tax bill, and the remaining interest paid is still eligible for the home mortgage interest deduction.
Who Can Apply?
- You are purchasing your first home which means you have not owned a home in the last three years.
- The Maximum home sales price does not exceed the current purchase price limit of $300,000 or if the home is located in a federally designated targeted area, $366,000
Repeat Homebuyer Program
You’re ready for a change and we’re here to help. Over 75,000 families have trusted us to finance their first home. Now we have a way to help repeat home buyers get into their next home with ease – and for less money out of pocket. Ask your lender about our new Repeat Homebuyer Loan Program and take advantage of this great opportunity.
- Low fixed rate
- Down payment and closing cost assistance
- Reduced mortgage insurance
- Less paperwork
National First-Time Homebuyer Loan Programs
- FHA Loans – FHA home loans are very popular with first-time homebuyers cause they require a 580 credit score with just a 3.5% down payment. Debt-to-income ratios up to 50% are allowed making them perfect for low-income borrowers.
- Conventional Loans – Conventional loans require a 620 credit score and a 5% to 20% down payment. If you put 20% or more down, mortgage insurance will not be required.
- USDA Loans – USDA mortgage loans are for low-to-median income borrowers buying a home located in a USDA-eligible rural area. They provide 100% financing with a 620 or higher credit score. Mortgage insurance is required but the rate is the lowest of any type of mortgage program available.
- VA Loans – Veterans of the U.S. military may be eligible for a VA home loan. No down payment or mortgage insurance is required and veterans with a 580 to 620 credit score are eligible.
- HomeReady and Home Possible Loans – Freddie Mac and Fannie Mae created the HomeReady and Home Possible loan programs for low-income first-time homebuyers whose income does not exceed 100% of the area median income requiring just a 3% down payment and a 620 credit score.
Buying a Home
Owning and Maintaining Your Home
Other South Dakota Resources