See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated May 7, 2026
Homebuyer Programs in Mitchell, SD (2026)
Mitchell is home to the famous Corn Palace and serves as the regional hub of Davison County, with a median home price around $260,000. While Mitchell does not have a city-funded down payment assistance program, buyers can pair the SDHDA Fixed Rate Plus second mortgage worth 3% or 5% of the loan amount with GROW South Dakota's $5,000-$10,500 deferred DPA loan and the SDHDA Mortgage Credit Certificate, which returns up to $2,000 per year in federal tax credits. Mitchell Regional Habitat for Humanity builds and sells homes at no profit with 0% interest mortgages to qualifying families in Davison and Hanson counties, and the Governor's House Program offers prebuilt $86,000-$96,000 homes for income-qualified residents.
State Programs in South Dakota
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Governor's House Program | Government Property Sale Program | Two-bedroom home from $86,000; three-bedroom from $96,000 | No | View → |
| GROW South Dakota Down Payment Assistance | Deferred Loan | $5,000 to $10,500 | No | View → |
| SDHDA First-Time Homebuyer Program (Fixed Rate Plus) | Silent Second Mortgage | 3% or 5% of loan amount | Yes | View → |
| SDHDA Mortgage Credit Certificate (MCC) | Tax Credit | Federal tax credit up to $2,000 per year (30% of mortgage interest) | Yes | View → |
- Type:
- Government Property Sale Program
- Amount:
- Two-bedroom home from $86,000; three-bedroom from $96,000
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- $5,000 to $10,500
- First-time only:
- No
- Type:
- Silent Second Mortgage
- Amount:
- 3% or 5% of loan amount
- First-time only:
- Yes
- Type:
- Tax Credit
- Amount:
- Federal tax credit up to $2,000 per year (30% of mortgage interest)
- First-time only:
- Yes
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Mitchell Regional Habitat for Humanity Homeownership Program | Zero-Interest Loan | Affordable home sold at no profit with 0% interest mortgage | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home sold at no profit with 0% interest mortgage
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. SDHDA programs cap purchase price at $410,000 in non-targeted areas. GROW SD requires income at or below 80% AMI.
Step 2: Complete a HUD-approved homebuyer education course. The NeighborWorks course is offered online at no cost.
Step 3: Get pre-approved with an SDHDA participating lender. Find a lender at sdhousing.org or call SDHDA at 800-540-4241.
Step 4: Contact GROW South Dakota at (605) 698-7654 to apply for deferred DPA. Habitat applicants should apply during the Mitchell Regional Habitat enrollment window at mitchellhabitat.org or call (605) 630-3259.
Step 5: Find a home in Mitchell within program price limits and use it as your primary residence.
Step 6: Submit your full application package. Plan 30 to 60 days from contract to close.
Step 7: Close on your home. Confirm any second mortgages and the SDHDA Mortgage Credit Certificate are recorded at closing.
Frequently Asked Questions
How much down payment assistance can I get in Mitchell?+−
Are there local Mitchell down payment assistance programs?+−
Do I have to be a first-time homebuyer in Mitchell?+−
What is the maximum home price I can buy in Mitchell?+−
When can I apply with Mitchell Regional Habitat?+−
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