South Dakota First-Time Homebuyer Loan Program Guide

Guide to the South Dakota First-Time Homebuyer Loan Program

The South Dakota First-Time Homebuyer Loan Program provides affordable mortgage options and assistance to help eligible first-time buyers achieve homeownership. With competitive rates and potential support for upfront costs, this program is tailored to make homeownership more accessible for those buying their first home. Below is an updated guide to the program’s features, eligibility criteria, and application process for 2025.

1. Program Overview:

• Purpose: The First-Time Homebuyer Loan Program offers affordable financing options to reduce the financial barriers to purchasing a first home in South Dakota.
• Loan Terms: The program provides 30-year fixed-rate mortgages, ensuring stable monthly payments and long-term affordability.
• Additional Assistance: Buyers may also qualify for down payment and closing cost assistance through companion programs to further reduce upfront expenses.

2. Eligibility Requirements for 2025:

To qualify for the South Dakota First-Time Homebuyer Loan Program, applicants must meet the following criteria:

• First-Time Homebuyer: The program is specifically for first-time buyers, defined as individuals who have not owned a home in the past three years. Exceptions may apply for buyers in targeted areas.
• Income Limits: Household income must fall within program limits, which vary based on location and household size. These limits are updated annually.
• Credit Score: A minimum credit score of 640 is required for most applicants. Additional underwriting guidelines may apply depending on the lender.
• Property Requirements: Eligible homes must be located in South Dakota, used as the buyer’s primary residence, and meet program price limits.

3. How to Apply:

Follow these steps to apply for the South Dakota First-Time Homebuyer Loan Program:

• Assigned Loan Officer: Once you begin the process, a loan officer will be assigned to assist you. They will verify your eligibility, explain the program benefits, and guide you through the application process.
• Prepare Documentation: Gather the necessary documents, including proof of income, tax returns, credit history, and property details.
• Submit Your Application: Work closely with your assigned loan officer to complete and submit the application. Your loan officer will handle the processing and notify you of your approval status.

4. Homebuyer Education Course:

• Mandatory Requirement: All applicants must complete a homebuyer education course to ensure they are prepared for the financial and practical responsibilities of homeownership.
• Course Options: The course can be taken online or in person. Upon completion, participants receive a certificate to include with their application.

5. Key Benefits of the First-Time Homebuyer Loan Program:

• Affordable Fixed Rates: The program offers competitive fixed-rate mortgages, ensuring manageable monthly payments and long-term cost savings.
• Companion Assistance: Buyers may combine this program with down payment and closing cost assistance programs for greater affordability.
• Accessible for First-Time Buyers: Tailored specifically for first-time homebuyers, the program is designed to address the unique financial challenges of purchasing a first home.

6. Finalizing the Loan:

• Approval Process: Once approved, your assigned loan officer will guide you through the final steps, including reviewing loan terms, signing documents, and preparing for the closing process.
• Closing Costs: While the program may help cover upfront expenses, buyers may still need to pay certain closing costs. Your loan officer will provide a detailed breakdown of these costs and payment expectations.

The South Dakota First-Time Homebuyer Loan Program is an excellent option for first-time buyers seeking affordable mortgage solutions and potential assistance with upfront costs. By providing competitive rates and additional support, this program helps South Dakota residents take the first step toward homeownership. Start your journey with the South Dakota First-Time Homebuyer Loan Program in 2025.