South Dakota Housing Development Authority (SDHDA) Programs:
Updated May 2026SDHDA (SD Housing) offers 30-year fixed-rate home loans through participating lenders plus down payment and closing-cost assistance options. Key program notes: SDHDA Fixed Rate Plus offers 3% or 5% down payment assistance as a 0% subordinate loan. Purchase-price and income limits are county-based and were updated in 2025; confirm details with a participating lender or SDHDA before applying: SDHDA Ready to Buy.
South Dakota First-Time Homebuyer Mortgage Programs:
Eligibility: Generally first-time homebuyers (no primary residence in the past 3 years; veterans waivers may apply).
Offerings: 30-year fixed mortgages via SDHDA participating lenders (FHA, VA, USDA, or conventional); optional Fixed Rate Buy Down and Fixed Rate Plus DPA.
Requirements:
- Income must be at or below SDHDA county-specific limits (SDHDA announced increased income guidelines effective April 30, 2025). See SDHDA for current county limits: SDHDA Ready to Buy.
- Purchase price limit for SDHDA First-Time Homebuyer loans: $410,000 (Repeat Homebuyer or targeted-area limits may be higher, commonly $460,000 for certain repeat/targeted-area cases). See the SDHDA First-Time Homebuyer page for details: SDHDA First-Time Homebuyer.
- Minimum credit score commonly cited by SDHDA: 620 (varies by loan product and lender underwriting). See SDHDA FAQs: SDHDA FAQs.
- Loan underwriting (DTI, assets, reserves) is determined by the lender and loan type; contact a participating lender for specifics and to see which first mortgage (FHA/VA/USDA/Conventional) best pairs with the SDHDA option.
- Homebuyer education is required or strongly recommended for many SDHDA products; SDHDA lists approved counseling providers. See SDHDA Ready to Buy resources: SDHDA Ready to Buy.
Down Payment Assistance (DPA) Options:
SDHDA Fixed Rate Plus: Offers 3% or 5% of the first mortgage as down payment and closing-cost assistance. The assistance is provided as a 0% subordinate loan with no monthly payments and is typically repaid on sale or refinance. Ask your participating lender how it pairs with the selected first mortgage. Official SDHDA DPA information: SDHDA Downpayment Assistance.
Format: SDHDA DPA is usually a subordinate 0% second loan (deferred until sale or refinance) or other program-specific structure; some local programs offer forgivable structures on a time-served basis.
Local Programs & Examples (verify locally):
County and city programs can add deferred or forgivable assistance. Local funding changes frequently—confirm availability and caps with the local program administrator.
Sioux Falls / Minnehaha County
Public Safety Down Payment Assistance: The City of Sioux Falls runs a Public Safety DPA for eligible police, fire, and other public-safety employees. City materials and the 2025 Housing Summary report list assistance up to $20,000 (or 20% of the purchase price, whichever is less). The City describes the support as a forgivable deferred loan; the 2025 summary tied the program in that year to the SDHDA First-Time Homebuyer limit then ($385,000). SDHDA now lists a $410,000 FTHB purchase-price limit — confirm with the City whether their program language has been updated to reference SDHDA’s current limit and ask the City about the specific forgiveness/occupancy schedule. Official City housing info and contacts: Sioux Falls Housing & Neighborhoods. Application form: Public Safety DPA Application (PDF).
Rapid City / Pennington County
Regional partners: Rapid City area assistance is most commonly provided through regional nonprofits and housing partners rather than a single city DPA. For example, Black Hills Area Habitat for Humanity provides homeownership pathways and partner financing. Check local nonprofit and county housing resources for current options: Black Hills Area Habitat — Homeownership.
Aberdeen / Brown County
Homes Are Possible, Inc. (HAPI): HAPI is a local nonprofit serving northeast South Dakota that provides homebuyer education and local closing-cost/down-payment assistance. HAPI contact page is the authoritative source for current maximums and whether funds are forgivable or deferred; contact HAPI directly for up-to-date amounts and rules: Homes Are Possible (HAPI).
Other Loan Types to Know About:
- USDA: 0% down in eligible rural parts of South Dakota; county and tract eligibility applies (check USDA site and lender).
- VA: 0% down for eligible veterans and active-duty borrowers.
- FHA: 3.5% down for credit scores 580+ (higher down payment required for lower credit scores); lender and product rules vary.
Always confirm program details, rates, income and purchase limits, and county-targeted-area status with an SDHDA participating lender and the SD Housing website: SDHDA Ready to Buy.
Seeking Agents® connects buyers with local agents who understand these programs—free for buyers and sellers.