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Randy Eide, Broker
Rossum & Neal Realtors
2400 W Main Street, #A
Rapid City, SD 57702
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South Dakota
First-Time Home Buyers Program
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Commonly known as the "First-Time Homebuyer Program", this program provides below-market fixed interest rate mortgage loans and cash assistance for homebuyers purchasing a residence in the state of South Dakota. Participating Lenders originate, process and close the loans.
The borrower's gross annual income may not exceed federally imposed income limits, which vary based on family size and the county in which the home is located.
The property must not exceed the federally-imposed maximum purchase price limits which vary based on the county in which the home is located.
SDHDA offers either a Fixed Rate option for 30 years or the Step-Rate Option. The interest rate, with the Step-Rate Option, starts at a predetermined affordable rate and increases one-half of one percent per year for the first four years and then becomes fixed at the beginning of the fifth year, where it stays for the remaining term of the loan.
The borrower must meet lending standards of creditworthiness, occupy the home as the principal place of residence within 60 days and meet certain other eligibility requirements. All loans must be insured or guaranteed against default by the Federal Housing Administration (FHA), Veteran's Administration (VA), USDA Rural Development or insured by a private mortgage insurance (PMI) company (Mortgage Insurance is not required if your down payment is 20% or more).
All single family residences must be owner-occupied, one to four family units. Dwellings with two to four family units must not be newly constructed.
This Program is funded by Tax-exempt Mortgage Revenue Bonds.Additional details can be found at: South Dakota Housing Development Authority |
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