Loan Options and Programs for First-Time & Repeat Homebuyers
Owning a home is a dream shared by many people across the state. It represents stability, security, and a place to call your own. For residents of South Dakota, turning this dream into reality is more accessible than ever, thanks to a range of loan options and programs offered by South Dakota Housing. Let’s explore some of the ways South Dakota Housing is helping first-time and repeat homebuyers achieve their homeownership goals.
South Dakota Housing has a mission to provide opportunities for South Dakotans with quality, affordable housing regardless of their income or background. South Dakota Housing offers a variety of loan options and programs designed to help individuals and families achieve their homeownership dreams.
According to the 2022 U.S. Census Bureau, South Dakota boasts a homeownership rate of approximately 70%, which is noticeably higher than the national average. This reflects the state's commitment to affordable housing and making homeownership accessible to its residents.
Loan Options
First-Time Homebuyer Program
South Dakota Housing’s First-Time Homebuyer Program is specifically designed for individuals and families purchasing their first home. It offers competitive interest rates and low downpayment requirements, making homeownership more attainable for those just starting on their homeownership journey.
Key benefits of the First-Time Homebuyer Program:
Low downpayment options.
Competitive interest rates.
Potential for downpayment assistance.
Educational resources and counseling to help first-time buyers make informed decisions.
Loan options which include FHA, Conventional, VA, and USDA Rural Development.
Some First-Time Homebuyers may also use a Mortgage Credit Certification (MCC), which reduces the amount of federal income tax you pay.
Repeat Homebuyer Program
For repeat homebuyers who are ready for a change, South Dakota Housing provides the Repeat Homebuyer Program with competitive rates and terms. Repeat homebuyer loans are an excellent option for those looking to move up to a larger home or downsize.
Key benefits of the Repeat Homebuyer Program:
Competitive interest rates.
Flexible downpayment options.
Potential for downpayment assistance.
Reduced mortgage insurance for qualified borrowers.
Loan options which include FHA, Conventional, VA, and USDA Rural Development.
FHA Loans
South Dakota Housing also offers Federal Housing Administration (FHA) loans, which are government-backed loans with more lenient qualification requirements. FHA loans are an excellent choice for first-time buyers who may have lower credit scores or limited funds for a downpayment.
Key benefits of FHA loans:
Lower downpayment requirements.
More flexible credit score requirements.
Competitive interest rates.
Veterans Affairs (VA) Loans
South Dakota Housing also supports our veterans by offering VA loans. These loans are available to eligible veterans, active-duty service members, and certain members of the National Guard and Reserves. VA loans typically require no downpayment and offer favorable terms.
Key benefits of VA loans:
You do not need to make a downpayment.
You do not need private mortgage insurance (PMI).
Competitive interest rates.
Lenient credit requirements.
USDA Rural Development
The USDA’s Rural Development loans cater to eligible homebuyers in rural areas, providing them with opportunities to achieve their homeownership dreams. USDA Rural Development loans, much like VA loans, often require no downpayment and come with attractive features.
Key benefits of USDA Rural Development:
Zero downpayment requirement.
Exemption from private mortgage insurance (PMI).
Competitive interest rates tailored for rural areas.
Flexible credit criteria to accommodate various financial situations.
Additional Programs and Resources
In addition to these loan options, South Dakota Housing provides valuable resources and programs to help homebuyers navigate the process successfully:
Homebuyer Education: South Dakota Housing offers homebuyer education courses to equip buyers with the knowledge and skills they need to make informed decisions throughout the home-buying process.
Downpayment Assistance: Depending on your income and circumstances, South Dakota Housing offers downpayment assistance to help bridge the financial gap for qualified buyers.
Mortgage Credit Certificate (MCC): The MCC program allows eligible first-time buyers to claim a tax credit, which can reduce their federal income tax liability and free up more funds for homeownership expenses.
Turn Dreams Into Reality
Turning your dream of homeownership into a reality is within reach, thanks to the various loan options and programs offered by South Dakota Housing. Whether you're a first-time homebuyer or a repeat buyer, South Dakota Housing has tailored solutions to fit your needs and make homeownership more affordable and attainable.
Take advantage of these resources, and start your journey towards owning your own home today.
Click here to learn more and explore the specific loan options available through South Dakota Housing.
