1.     Fixed Rate Plus Program is a down payment and closing costs assistance program in South Dakota which offers government and conventional loans. To be an eligible borrower, you cannot have resided in the home you want to buy during the previous three years; this rule doesn’t apply to qualified 2nd-time homebuyer veterans.

Fixed Rate Plus Program offers you a 3% gift to help offset the costs of the down payment and closing costs which have never to be repaid. The Fixed Rate Plus Program can be combined with other loan options to obtain 100% financing.

Fixed Rate Plus Program allows you to use your credit for buying existing properties or new construction, but income and purchase price limits apply. Thus, your total household income cannot exceed the federally-imposed income limit for the county in which the property is located. Fixed Rate Plus Program requires that all loans be insured or guaranteed against default by the Federal Housing Authority (FHA), Veterans Administration (VA), USDA Rural Development or insured by a private mortgage insurance (PMI) company. This rule doesn’t apply for 20% or more downpayment. Fixed Rate Plus Program requires a homebuyer education certification. It can be obtained for free through Hero (Homeowner Education Resource Organization) which will help you understand the complex process of home purchasing. You are advised to contact one of the qualified lenders for additional information and guidance about the program.

 

2.     Mortgage Credit Certificate is a program which offers you the possibility to convert some of your mortgage interest into a tax credit each year. Thus, instead of the $750 fee to get the credit you will have to pay only $250. The lender may also charge a fee up to $250. But you have to pay attention to the fact that you may be subject to a recapture tax payable to the Internal Revenue Service in case you sell your home within nine years or your household income no longer meets the guidelines. If that may happen, the state will reimburse you.

Mortgage Credit Certificate allows you to qualify for the program if this is the first home you purchase (in the last three years). You have to buy a home whose price does not exceed the current Purchase Price Limit of $250,200 or $305,800 (for targeted areas). Your income has to be lower than the income limits in effect (varying by family size and by county).

Mortgage Credit Certificate requires a homebuyer education certification. It can be obtained for free through Hero (Homeowner Education Resource Organization) which will help you understand the complex process of home purchasing. You are advised to contact one of the qualified lenders for additional information and guidance about the program.

 

3. Governor’s House Program is a South Dakota loan program for income-qualified individuals or families who need to buy a reasonably sized, affordable home. There are modest homes which are designed for people who meet income restrictions or are elderly or have a disability. These homes are usually quality, low-cost, low-maintenance, energy efficient residences.

Governor’s House Program requires you to have a household income lower than $45,220 (for yourself and one other person) or $51,680 (for yourself and two or more people). The home has to be your only residence and you have to live in the home.

Governor’s House Program sets the income limits according to your age as follows: under 62, your net worth must be less than $90,000 and less than $70,000 in liquid assets, over 62 your net worth must be less than $175,000 and less than $100,000 in liquid assets. Other requirements for being an eligible borrower are: you have to provide the lot and the foundation, purchase the building permit and pay the utility hookups and fees. You are advised to contact one of the qualified lenders for additional information and guidance about the program.

 

4.  Community Home Improvement Program (CHIP) is a 10-year low interest loan for home improvement. If you are an eligible borrower, you may improve or repair your present single family home. You may borrow from $500 to $25,000.

Community Home Improvement Program doesn’t require a first-time buyer restriction and offers you interest rates varying between 1.9%, 3.9% and 5.9% (according to the county in which the home is located and the total gross annual household income). Community Home Improvement Program is a very affordable program as it doesn’t apply loan-to-value (LTV) or minimal costs associated with obtaining a CHIP loan.

Community Home Improvement Program requires a homebuyer education certification. It can be obtained for free through Hero (Homeowner Education Resource Organization) which will help you understand the complex process of home purchasing. You are advised to contact one of the qualified lenders for additional information and guidance about the program. You will be advised about the eligible and ineligible repairs or improvements you want to do (i.e. room additions, air conditioning, fencing, painting, termite control, roofing, doors, decks, driveways, kitchen cabinets, foundations, wallpaper, heating systems are eligible and appliances, furniture, or landscaping are ineligible).

Fixed Rate Plus Program

Mortgage Credit Certificate

Governor’s House Program

Community Home Improvement Program (CHIP)

Hero (Homeowner Education Resource Organization)

SDHDA Participating Lenders