The US Department of Agriculture Rural Development is currently accepting loan applications from low-income families to purchase or repair homes in rural South Dakota communities. USDA Rural Development’s housing programs offer rural South Dakotans the opportunity to achieve their homeownership goals.
The Direct Home Loan Program assists low- and very-low- income applicants obtain decent, safe, and sanitary housing in eligible rural areas. Funds can be used to purchase, build, repair, or renovate a home. Applicants must meet income eligibility for a direct loan. Please select South Dakota from the map that displays.
The maximum mortgage limit for a USDA Rural Development direct home loan is $285,000. Also, a typical income limit for a one-person household using the USDA direct home loan program to purchase a home in an eligible rural South Dakota community or area is $36,550. For a family of four a common limit is $58,500. Income limits vary by county and household size, generally, rural areas with a population less than 35,000 are eligible. Applicants are encouraged to contact South Dakota USDA Rural Development staff for limits in their specific area or visit the USDA Income and Property Eligibility website for complete details.
The loans provide 100% financing, require no down payment or private mortgage insurance, no points, and no origination fees. The loans have a fixed interest rate for a term of 33 or 38 years. Low-income applicants may qualify for subsidized payments and effective interest rate as low as 1%. Loan funds may also be used to assist current eligible homeowners with repairs at reasonable rates and terms.
Applicants must have an acceptable credit history, meet income guidelines, have repayment ability to service the new loan and any existing obligations, be a United States citizen or legally admitted for permanent residence, and own and personally occupy the home on a permanent basis.
To learn more, visit www.rd.usda.gov/sd or contact USDA Rural Development at 605-937-4782 or email at SFHDirectSD@usda.gov.
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