See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated May 7, 2026
Homebuyer Programs in Rapid City, SD (2026)
Rapid City is the gateway to the Black Hills and the second-largest city in South Dakota, with a median home price near $323,000. While there is no city-funded down payment assistance program, Rapid City buyers can pair NeighborWorks Dakota Home Resources's deferred 0% interest loan of up to $5,000 (and a $2,000 single-parent Legacy Fund) with the SDHDA Fixed Rate Plus second mortgage worth 3% or 5% of the loan amount. The SDHDA Mortgage Credit Certificate adds up to $2,000 per year in federal tax credits, GROW South Dakota offers an additional $5,000-$10,500 deferred DPA loan, and Black Hills Area Habitat for Humanity provides an affordable mortgage and a subordinate gap-closing mortgage for income-qualified families willing to put in sweat equity.
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 |
|---|---|---|---|---|
| Black Hills Area Habitat for Humanity Homeownership Program | Repayable Loan | Affordable mortgage plus subordinate deferred mortgage to bridge affordability gap | No | View → |
| NeighborWorks Dakota Home Resources Down Payment & Closing Cost Assistance | Deferred Loan | Up to $5,000 (HOF DPCC); up to $2,000 for single parents (Legacy Fund) | No | View → |
- Type:
- Repayable Loan
- Amount:
- Affordable mortgage plus subordinate deferred mortgage to bridge affordability gap
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- Up to $5,000 (HOF DPCC); up to $2,000 for single parents (Legacy Fund)
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. NeighborWorks DHR uses 115% AMI for general DPCC and 150% AMI for the single-parent Legacy Fund. SDHDA programs cap purchase price at $410,000 in non-targeted areas.
Step 2: Complete a NeighborWorks Homebuyer Education course at no cost (online or in person). Contact NeighborWorks Dakota Home Resources to register.
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 NeighborWorks Dakota Home Resources to apply for HOF DPCC, Legacy Fund DPCC, or Village on Monroe townhouse purchase assistance. Black Hills Area Habitat applicants should apply directly through blackhillshabitat.org.
Step 5: Find a home in Rapid City within program price limits and apply your assistance package at the lender level.
Step 6: Submit your full application package. Plan 30 to 60 days from contract to close.
Step 7: Close on your home. Confirm all DPA second mortgages and the SDHDA Fixed Rate Plus loan are properly recorded.
Frequently Asked Questions
How much down payment assistance can I get in Rapid City?+−
Do I have to be a first-time homebuyer in Rapid City?+−
What is the maximum home price I can buy in Rapid City?+−
What homebuyer education is required?+−
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