Do I Qualify?

SD Housing / Ready To Buy? / Do I Qualify?

Are you wondering whether you're eligible for our homebuyer programs? View qualifications for eligibility below then contact a participating lender to get started.

 
 

First-Time Homebuyer Program

  1. Meet the definition of a first-time homebuyer, meaning you have not owned a home in the past three years:

    • If a homebuyer owned and lived in a dwelling unit that was not permanently affixed to a permanent foundation (ie; a mobile home), it doesn't count as previous homeownership.

    • Ask your lender about our Veterans Waiver to see if you qualify.

  2. Have an income at or below prescribed South Dakota Housing Income Limits.

  3. The purchase price must be $385,000 or less.

 Contact a participating lender to get started.

 

Repeat Homebuyer Program

  1. Income limit of less than $102,480 for a family of two or less; $119,560 for a family of three or more

  2. Purchase price limit is $413,000

  3. Minimum credit score of 620

 Contact a participating lender to get started.

 

Governor's House Program

The program was conceived to provide affordable housing, particularly to those people who are seniors, have disabilities, or are low- to moderate-income. To qualify, purchasers must:

  • Make $64,820 or less in a one- or two-person household or $74,080 or less in a household of three or more

  • Have a net worth of less than $125,000—or $105,000 in liquid assets—for applicants age 61 or younger

  • Have a net worth of less than $250,000—or $140,000 in liquid assets—for applicants age 62 or older

  • Consider the home their only residence

  • Place the home within South Dakota

*SDHDA will be limiting developer purchases to two houses/units per 90 days.

 
 

Community Home Improvement Program (CHIP)

  • The total gross annual household income is a maximum of $102,480 for a household of 2 or less or a maximum of $119,560 for a household of 3 or more. CHIP Loans have level monthly payments and are amortized according to underwriting guidelines. Loan amounts and terms are determined on an individual basis.

  • There are no loan-to-value requirements and minimal costs associated with obtaining a CHIP Loan.

 Contact a participating lender to get started.

 

Frequently Asked Questions (FAQs)

  • Contact one of SD Housing's Participating Lenders for an application and interview.

  • No

  • Yes, South Dakota Housing financing can be used for the purchase of existing homes or new construction.

  • Purchase limits are different for First-Time Homebuyer and Repeat Homebuyer programs. The maximum purchase price for the First-Time Homebuyer program is currently $340,000. This number increases to $413,000 for the Repeat Homebuyer Program.

  • It depends on the type of mortgage insurance, but usually, it's somewhere around 3% of the loan amount and up.

  • SD Housing will permit a co-signer with no ownership interest in the property (does not take title or execute the Mortgage) to execute the Mortgage Note and, thus become liable for repayment of the obligation.

  • SD Housing can only finance the residence and the land required to reasonably maintain the basic livability of the residence. The land cannot provide a source of income, the property cannot be subdivided in the future, and outbuildings cannot be financed with the proceeds of a mortgage loan.

  • Yes, the lender must provide signed bid estimates or copies of final bills.

  • Annualized gross income from any and all income sources.

  • Yes, an average of past year and year to date is used for these types of income.

  • It is possible to finance a manufactured/mobile home with a "Government" insured or guaranteed first mortgage with SD Housing. It must be placed on a permanent foundation that conforms to mortgage insurer guidelines, and it must be taxed as real estate.

  • Contact one of SD Housing's Participating Lenders for an application and interview.

  • See SD Housing's privacy notice.

  • To be eligible for the First-Time Homebuyer Program, at least one borrower/co-borrower must have attended a homebuyer education course when using a conventional mortgage product. These include private, insured and uninsured mortgages only. Homebuyer Education is available online or in person and is free.

    For the Repeat Homebuyer Program, although SD Housing strongly suggests everyone attend a Homebuyer Education class, only SD Housing’s conventional mortgage requires Homebuyer Education. These include private insured and uninsured mortgages only. Homebuyer Education is available online or in person and is free.

  • They insure your mortgage lender against loss.

    Interest rates are usually quoted in terms of "Government" or "Conventional." "Government" type loans are those that are either insured or guaranteed by an entity of the federal government which include:

    FHA - The Federal Housing Administration of the U.S. Department of Housing and Urban Development

    VA - The Veterans Administration, an agency of the United States of America

    USDA Rural Development - The United States Department of Agriculture, rural Economic and Community Division.

    Whereas "Conventional" type loans either have private mortgage insurance (PMI) or with a 20% downpayment are not insured at all. The insurance or guarantee protects the mortgage holder against loss due to non-payment or foreclosure of your loan. There is a cost to you and your Participating Lender will explain each type and help you choose which one is best for you.

    PMI - Private Mortgage Insurance Companies

    Uninsured - The borrower put 20% or more down on their loan making mortgage insurance unnecessary