Home ownership may now be within reach for some South Dakotans thanks to changes to programs administered by the South Dakota Housing Development Authority.
Effective with all loan commitments dated on or after May 14, 2021, the 1% SDHDA origination fee will be waived. For example, on a $200,000 loan, buyers will not have to pay the $2000 origination fee up front, allowing borrowers to pay less in closing costs.
In addition, SDHDA will be providing borrowers an additional option for the Fixed Rate Plus loan. Currently, borrowers are eligible for a loan that equals 3% of the first mortgage amount for downpayment and closing costs assistance. After May 14, 2021, a loan option that equals 5% of the mortgage will be available, in addition to the 3% option. Some borrowers may need the additional funds to fill the gap created by the seller’s market.
Borrowers must meet certain qualification requirements, including income and purchase price restrictions. The income limits vary by county and can be found on SDHDA’s website.
Homebuyers interested in assistance can begin the application process by visiting a lender offering SDHDA homebuyer products. A list of participating lenders can be found on sdhda.org or by calling 800.540.4241.
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