Fixed Rate Plus (3% or 5% Down Payment/Closing Cost Assistance)
South Dakota Housing Development Authority (SDHDA / "SD Housing") — the state's official housing finance agency, accessed through SDHDA participating lenders
Amount: Borrower chooses 3% or 5% of the first mortgage loan amount, structured as a separate 0% interest second mortgage with no monthly payments; it is due only upon sale, refinance, or payoff of the first mortgage (no origination fee is charged on SDHDA loans as of the May 2021 program update).
Type: Deferred-payment, 0% interest silent second mortgage (not a grant)
Must be a South Dakota first-time homebuyer (has not owned a home in the prior 3 years, with a waiver of this rule available to qualifying veterans); home purchase price capped at $410,000; household income must be at or below SD Housing's income limits, which vary by county (sources vary in the exact statewide figure cited — roughly in the $65,000–$125,000 range for 1-2 person households and $74,000–$145,000 for 3+ person households depending on county and update date, so applicants should confirm their county's exact limit at sdhousing.org); minimum credit score around 620 is commonly cited by lenders; homebuyer education course required when using a conventional mortgage product.
Governor's House Program
South Dakota Housing Development Authority (SDHDA / SD Housing)
Amount: Provides access to low-cost, factory-built 2- or 3-bedroom homes (built by the state's vocational programs) at below-market cost, which functions as an affordability/cost-reduction tool rather than a direct cash down payment grant; combinable with SDHDA first mortgage and down payment assistance options.
Type: Below-market-cost home construction program (affordability assistance, not a cash DPA grant)
Household income at or below $72,380 (1-2 person household) or $82,720 (3+ person household); net worth limits apply (generally under $125,000 net worth / $105,000 liquid assets for applicants under 61, or under $250,000 net worth / $140,000 liquid assets for those 62+); intended for buyers who often build/place the home on owned land.
Down Payment and Closing Cost Assistance
GROW South Dakota (growsd.org) — a regional nonprofit community/economic development organization serving South Dakota, not a state agency, offered as a supplement where SDHDA/state-level funds may be limited
Amount: Typically $5,000–$7,500 depending on rural vs. urban location, household income, and current fund availability, provided as a 0% interest, deferred-payment loan with a 30-year term (repaid at sale, refinance, or transfer).
Type: Deferred-payment, 0% interest second mortgage (nonprofit-administered, not the state HFA)
Must secure first mortgage financing through a GROW SD-approved lender; must complete an approved homebuyer education course; income guidelines apply and vary by household size/location; primarily targeted at rural South Dakota purchases. Applicants should verify current fund availability directly with GROW SD, as this program has had periods of limited/no funding.
Homes Are Possible, Inc. (HAPI) Down Payment/Closing Cost Loan
Homes Are Possible, Inc. (HAPI) — a regional nonprofit serving 22 counties in northeast South Dakota
Amount: $5,000 non-forgivable, 0% interest deferred loan to cover down payment/closing costs (loan origination fees, title search/insurance, survey, appraisal, and closing fees); a $250 administration fee applies.
Type: Deferred-payment, 0% interest loan (regional nonprofit, non-forgivable — must be repaid)
Property must be in one of HAPI's 22-county northeast South Dakota service area; household income at or below 80% of area median income (county-based); completion of an approved homebuyer education course required; home must be a permanent-foundation primary residence.