First-Time Homebuyer Programs in South Dakota

South Dakota offers several state-administered programs that make homeownership more affordable. The SDHDA First-Time Homebuyer Program pairs a competitive 30-year fixed mortgage with optional Fixed Rate Plus down payment assistance equal to 3% or 5% of the loan amount as a 0% interest second mortgage. SDHDA also issues Mortgage Credit Certificates (MCCs) worth up to $2,000 per year in federal tax credits. The Governor's House Program sells reasonably priced two- and three-bedroom homes ($86,000-$96,000) built by inmate labor to income-qualified buyers, and statewide nonprofits like GROW South Dakota offer additional 0% interest deferred down payment loans of $5,000-$10,500.