Fixed Rate Plus Option

In an effort to help individuals achieve their dreams of homeownership, the South Dakota Housing Development Authority offers the Fixed Rate Plus Option. This program helps to cover some or all of the down payment and closing costs associated with a mortgage transaction.

Available Assistance
The Fixed Rate Plus Option provides eligible applicants with down payment and closing cost assistance up to 3 percent of the loan amount. The assistance funds come in the form of a gift at the loan closing. While it requires a slightly higher interest rate on the first mortgage, this amount does not need to be repaid.

Eligibility Requirements
In order to be considered eligible for the Fixed Rate Plus Option, all applicants need to meet certain requirements. They must fall within the program’s maximum income limits, which change annually and vary based on county. Applicants are responsible for completing a homebuyer education course, and for meeting financial requirements.

Property Guidelines
Any home being purchased must serve as the homebuyer’s primary residence, and fall within the program’s maximum purchase price: $250,200, for first-time homebuyers, and $305,800 for repeat homebuyers or those buying in a targeted area.

(Note: These figures were accurate at the time of publication and may no longer be current - visit the program website for updated information.)
 
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but States and Local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price and income limits.