South Dakota First‑Time Homebuyer Program
For many, buying a home—especially your first—can feel intimidating and overwhelming. The good news: there are programs designed to help. And if you live in South Dakota, you’ll be interested to know that American State Bank is now a participating lender in the South Dakota Housing First-Time Homebuyer Program. Let’s take a closer look at what this could mean for you.
South Dakota offers a collection of programs through the South Dakota Housing Development Authority (SDHDA), also known as South Dakota Housing, designed to make buying a first home more affordable. These programs can help through reduced interest-rate mortgages, down payment assistance, and tax benefits.
Key benefits include:
- Competitive, below-market interest rates on the first mortgage
- Eligibility for down payment and closing cost assistance
- Access to the Mortgage Credit Certificate (MCC) tax credit, which can reduce your federal income tax by allowing part of your mortgage interest to count as a dollar-for-dollar tax reduction
Basic eligibility requirements:
- You haven’t owned a home in the past 3 years
- You meet household income limits and purchase price limits in your area
- You work with an SDHDA participating lender
- You qualify based on credit, income, and debt-to-income standards
Down Payment Assistance (DPA)
- Borrow 3% or 5% of the first mortgage amount to use toward down payment or closing costs
- Provided as a silent second mortgage (0% interest and no monthly payments)
- Repaid only when you sell, refinance, or move out of the home
If you want to learn more about buying a home in South Dakota, stop in at the ASB Sioux Falls branch and start the home buying conversation today! You might be surprised just how easy it is to qualify, with the help of some of these SD Housing programs.
Ryan Mulder
Market President | NMLS # 1732038