HAPI Down Payment Closing Cost Assistance

South Dakota’s Homes Are Possible Inc. (HAPI) acknowledges  that even though potential homebuyers are able to make the monthly payments on a new home, they may not have enough saved for a down payment. That’s why HAPI currently offers a $3,500 non-forgivable loan as Down Payment/Closing Cost Assistance for Brown County. This is a zero-interest loan, which needs to be repaid to HAPI only if the borrower decides to sell, refinance, or transfer the title on the home.
For other South Dakota counties, HAPI provides Housing Opportunity Funds. This award comes in the form of a $3,500 forgivable grant.

Eligibility Requirements
Both assistance programs have certain requirements that applicants must meet to be considered eligible. HAPI requires that all borrowers attend and complete a Homebuyer Education course prior to closing on the home. All applicants must fall within the income limits are under 80 percent of the HUD AMI for each county.

Income Limits
1 person household: $33,250
2 person household: $44,300
3 person household: $38,238
4 person household: $55,350
5 person household: Contact HAPI

Note: these figures were accurate at the time of publication and may no longer be current - visit the program website for updated information.

The purpose of this program is to make funds available to eligible applicants who are interested in purchasing a home but need financial help to pay the upfront costs, which include the down payment, as well as the closing costs and prepaid items required to obtain homeownership. These expenses can add up to a substantial amount, and the inability to pay it might keep people stuck in a renters trap.

*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.