As a first time home buyer South Dakota you likely need some assistance. Thankfully this state offers access to several opportunities that are here to help you in this life changing journey. In a state with 858,469 residents, according to the 2015 US Census estimates, you have a great chance to become one of the many who are homeowners. Use this guide to help you decide which of the many incentives, programs and grants will best serve your needs.
Homebuyers Assistance Program
In a state that has dozens of interesting features, it’s no wonder that many South Dakota visitors and locals call this state home. For residents of the state’s largest city of Sioux Falls, with a population of 168,586 as of the 2015 US Census estimates, the Homebuyers Assistance Program serves certain candidates. Through the Homebuyers Assistance Program you could potentially receive financial aid for the down payment, as well as closing costs, for a home purchase. In order to be eligible you must be considered low to moderate income. Also, your home purchase must be within a certain jurisdiction.
Under this program more than 750 first time home buyers in South Dakota have been granted funding assistance since 1998. An application must be sent in to the program to determine eligibility. However, as long as the potential buyer is in good financial standing with a certain debt ratio, and they are buying a house within the designated jurisdiction in Sioux Falls, there is the opportunity to receive up to $5,000 in a no-interest loan payment.
First Time Home Buyers Program
Through the South Dakota Housing Development Authority you can receive access to low interest loans and financial aid as a first time home owner. Under this program your total home purchase cost must not exceed $250,000. Furthermore, if you are a military veteran you can request a waiver that will help you bypass some of the restrictions for this program. For example, in general you cannot have owned a home for the last three years. This is a determining factor to note that you are a first time home buyer. However, if you were in the military you may have lived in on-base housing, which would be considered home ownership. Therefore veterans are granted a waiver that eliminates this barrier. To sign up for this program you have to request an application and interview through a participating lender under the South Dakota Housing Development Authority (SDHDA) umbrella.
Additional Programs via the SDHDA
The SDHDA offers access to several other programs besides the First Time Home Buyer Program. According to the Sanborn County Development Corporation these programs include:
- Mortgage Assistance Program (MAP)
- Loan Assistance Program (LAP)
- Community Home Improvement Program (CHIP)
- Employer Mortgage Association Program (EMAP)
Note that each of these programs are federally monitored programs that go through various channels. For example, the Employer Mortgage Assistance Program is also referred to as Fannie Mae or Penny Mac. These programs are provided through your banking officer or mortgage provider.
The Governor’s House
Another opportunity for assistance for first time buyers of housing in South Dakota under the guise of the SDHDA is the Governor’s House program. Established in 1996 this program provides affordable housing for those who qualify based on income, disabilities or age. For example, among the more than 2,000 home owners assisted by the Governor’s House program, the majority are elderly, income-qualified or living with disabilities. In order to qualify the household income of an applicant cannot exceed $45,290 for individuals or couples, or $51,760 for three or more family members. This home purchase must be the primary and sole residence of the applicant, and the address must be in South Dakota.
The way this program works is that the home is provided for the resident, by way of a mobile home. This structure is placed on a lot, that is provided by the home buyer. The home buyer must also get the building permit, foundation, utilities and appliances on their own accord. The home is delivered and set up for the home buyer with the total cost ranging from $40,500 to $47,200. This low cost must be paid through loan payments by the home buyer.
Prairieland Housing DevelopmentÂ
If you are living in District 3 of South Dakota as a new home owner you may be eligible for assistance through the Prairieland Housing Development (PHD) group. This nonprofit organization is in charge of assisting home buyers with the process of home ownership. They will help applicants of the Governor’s House, as well as with additional community programs geared at aiding new home buyers in the district. Counties within the District 3 area include:
- Aurora
- Bon Homme
- Brule
- Charles Mix
- Davidson
- Douglas
- Gregory
- Hanson
- Hutchinson
- Jerald
- Lyman
- Tripp
- Yankton
South Dakota Community Network
Granted the widespread rural population of home buyers in South Dakota, in addition to the best cities in the state, the need for aid comes naturally via the South Dakota Community Network. Through this organization new home buyers can find information and contacts to help them complete their mission of buying a new home in South Dakota. Whether you are new to South Dakota, or a lifelong resident hoping to become a new home owner, this state offers many resources for home buyers. Start asking questions and do your research to find the best house for you to live in here in South Dakota.
”
2 Point Highlight
Through the Homebuyers Assistance Program you could potentially receive financial aid for the down payment, as well as closing costs, for a home purchase.
The SDHDA offers access to several other programs besides the First Time Home Buyer Program.
