What is the South Dakota First-Time Homebuyer Loan Program?
The South Dakota First-Time Homebuyer Loan Program provides affordable mortgage options and assistance for first-time buyers to help them achieve homeownership with lower upfront costs.
Who qualifies as a first-time homebuyer in South Dakota?
A first-time homebuyer is someone who has not owned a home as their primary residence in the past three years. Exceptions may apply for buyers in targeted areas or for certain programs.
What types of assistance does the program provide?
The program offers low-interest-rate loans and may include down payment and closing cost assistance to reduce the financial barriers of purchasing a home.
How much assistance can I receive?
Eligible buyers can receive up to 3% of the home’s purchase price or loan amount as assistance, depending on the program specifics.
Are there income limits for the program?
Yes, income limits are based on household size and the county where the property is located. These limits are updated annually to ensure the program targets low-to-moderate-income families.
What types of homes are eligible for this program?
Eligible properties include single-family homes, townhouses, and condominiums. Manufactured homes may also qualify if they meet specific program requirements and are permanently affixed to a foundation.
What is the maximum purchase price allowed?
As of 2025, the maximum allowable purchase price for eligible homes varies by county, typically ranging from $300,000 to $500,000, depending on program guidelines.
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Get Started NowWhat is the minimum credit score required?
Applicants generally need a minimum credit score of 640 to qualify, though certain programs may require higher scores based on financial conditions.
Is homebuyer education required?
Yes, completion of a homebuyer education course is mandatory to ensure participants are well-prepared for the responsibilities of owning a home.
Does the assistance have to be repaid?
Some forms of assistance are forgivable if residency requirements are met, such as living in the home for a set number of years. Others may need to be repaid if the home is sold or refinanced within a specific period.
Can the program help with closing costs as well as the down payment?
Yes, the program provides assistance that can be applied toward both down payment and closing costs, helping to reduce the upfront expenses for buyers.
Are repeat homebuyers eligible?
Repeat homebuyers may qualify if purchasing in a targeted area or if they meet other program-specific criteria.
What are the debt-to-income (DTI) ratio requirements?
The maximum DTI ratio is generally 45%, though exceptions may be allowed for applicants with strong financial profiles or compensating factors.
Are there any restrictions on where the property must be located?
Yes, the property must be located within South Dakota and meet program eligibility guidelines for location and type.
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Get Started NowCan the program be used for new construction homes?
Yes, newly constructed homes are eligible as long as they meet the program’s purchase price limits and other criteria.
Are there fees associated with this program?
Standard mortgage-related fees, such as origination and processing fees, may apply. These should be reviewed with your lender during the application process.
Can the program be combined with other state or federal assistance programs?
Yes, the First-Time Homebuyer Loan Program can often be combined with other assistance programs to maximize benefits for eligible buyers.
How does the forgivable loan option work?
Forgivable loans require the borrower to stay in the home for a set period, such as 10 years. If they meet this requirement, the loan is forgiven, and no repayment is necessary.
Can this program be used with FHA, VA, or USDA loans?
Yes, the assistance can be applied to FHA, VA, USDA, and conventional loans as long as they align with program requirements.
What are the benefits of the South Dakota First-Time Homebuyer Loan Program?
The program helps first-time buyers achieve homeownership by offering lower interest rates, assistance with upfront costs, and educational resources to support long-term financial stability.