See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated May 7, 2026
Homebuyer Programs in Sioux Falls, SD (2026)
Sioux Falls is South Dakota's largest city and a fast-growing financial and healthcare hub anchoring the southeast corner of the state. With a median home price near $312,000, the city sits within reach for first-time buyers who stack the right programs. Local buyers can use the City of Sioux Falls Homebuyer Assistance Program (up to $8,000 forgivable) on top of SDHDA's Fixed Rate Plus second mortgage worth 3% or 5% of the loan, plus the SDHDA Mortgage Credit Certificate that can return up to $2,000 per year as a federal tax credit. GROW South Dakota adds another $5,000 to $10,500 in deferred down payment assistance for income-qualified buyers, and Habitat for Humanity of Greater Sioux Falls and Affordable Housing Solutions provide nonprofit pathways to ownership through sweat equity and newly constructed affordable homes. Combining a city forgivable loan with state DPA and the MCC can stack more than $15,000 in upfront help plus ongoing tax savings.
City Programs in Sioux Falls
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of Sioux Falls Homebuyer Assistance Program | Forgivable Loan | Up to $8,000 | Yes | View → |
| Sioux Falls Public Safety Down Payment Assistance Program | Forgivable Loan | Down payment and closing cost assistance (verify amount with City) | No | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $8,000
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Down payment and closing cost assistance (verify amount with City)
- First-time only:
- No
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 |
|---|---|---|---|---|
| Affordable Housing Solutions Neighborhood Revitalization Homeownership | Forgivable Loan | Newly constructed single-family home sold to income-eligible buyers at an affordable price (down payment assistance may be available) | Yes | View → |
| Habitat for Humanity of Greater Sioux Falls Homeownership Program | Repayable Loan | Affordable mortgage capped at 30% of household gross income | No | View → |
- Type:
- Forgivable Loan
- Amount:
- Newly constructed single-family home sold to income-eligible buyers at an affordable price (down payment assistance may be available)
- First-time only:
- Yes
- Type:
- Repayable Loan
- Amount:
- Affordable mortgage capped at 30% of household gross income
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. The City of Sioux Falls Homebuyer Assistance Program and SDHDA programs target buyers at or below 80% AMI (roughly $68,200 for a family of four in Minnehaha County). Most state programs cap purchase price at $410,000.
Step 2: Complete a HUD-approved homebuyer education course. Sioux Empire Housing Partnership at 200 N Phillips Ave Suite 200 offers in-person and online classes; reach them at (605) 339-0942 or sehp@siouxfalls.com.
Step 3: Get pre-approved with an SDHDA participating lender. Find a participating lender at sdhousing.org or call SDHDA at 800-540-4241.
Step 4: Contact the City of Sioux Falls Community Development Division at (605) 367-8180 to start the City Homebuyer Assistance Program application. Public safety employees should ask about the Public Safety Down Payment Assistance Program.
Step 5: Find a home in Sioux Falls within program price limits. The home must be your primary residence and meet the City and SDHDA property standards.
Step 6: Submit your full application package. Plan for 30 to 60 days from contract to close once all program approvals are in place.
Step 7: Close on your home. Confirm with your lender that all assistance funds (city forgivable loan, SDHDA second mortgage, MCC) are properly recorded at closing.
Frequently Asked Questions
How much down payment assistance can I get in Sioux Falls?+−
Do I have to be a first-time homebuyer in Sioux Falls?+−
What is the maximum home price I can buy with these programs?+−
What homebuyer education is required?+−
Can Sioux Falls public safety employees get extra help?+−
What if I want a brand new home but my budget is tight?+−
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