South Dakota Down Payment Assistance
South Dakota Down Payment Assistance Programs
A guide to current down payment assistance options in South Dakota, including the state Housing Finance Agency, well-known city and county programs, and live DPA mortgage pricing for South Dakota homebuyers.
South Dakota Housing Finance Agency
South Dakota Housing Development Authority (SDHDA)
www.sdhousing.org800-540-4241
SDHDA administers the primary DPA programs for South Dakota. Program details below are current as of October 17, 2026 - confirm current terms directly with SDHDA before applying.
Statewide DPA Programs in South Dakota
First-Time Homebuyer Program
SDHDA
30-year fixed-rate first mortgage paired with eligibility for SDHDA down payment assistance (Fixed Rate Plus).
Paired with: FHA, VA, USDA, Conventional
- First-time homebuyer: Required
- Primary residence only
- Income: Household income must fall under SDHDA income limits, which vary by county and household size. Purchase price up to $410,000.
- Homebuyer education required
First-time homebuyer defined as no home ownership in the last three years; a home not on a permanent foundation does not count, and a Veterans Waiver is available. Options include Fixed-Rate, Fixed-Rate Buy Down (1% discount point), and Fixed Rate Plus 3% or 5% assistance.
Source: www.sdhousing.org
Repeat Homebuyer Program
SDHDA
30-year fixed-rate first mortgage available to buyers who have previously owned a home; eligible to pair with SDHDA down payment assistance.
Paired with: FHA, VA, USDA, Conventional
- First-time homebuyer: Not required
- Primary residence only
- Minimum FICO: 620
- Income: Under $124,080 for a household of two or less, $144,760 for three or more. Purchase price up to $460,000.
- Homebuyer education required
Includes reduced mortgage insurance.
Source: www.sdhousing.org
Fixed Rate Plus Down Payment Assistance
SDHDA
3% or 5% of the first mortgage loan amount, delivered as a 0% interest second mortgage with no monthly payments or fees; due on sale, refinance, or payoff of the first mortgage.
Paired with: FHA, VA, USDA, Conventional
- Primary residence only
- Income: Must meet SDHDA income and purchase price limits (county-based).
- Homebuyer education required
Available only in conjunction with an SDHDA First-Time or Repeat Homebuyer first mortgage. Funds may be used for down payment and closing costs.
Source: www.sdhousing.org
Governor's House Program
SDHDA
Energy-efficient affordable homes built and sold to income-qualified South Dakotans; not a down payment assistance product but a complementary affordable housing path.
- Primary residence only
- Income: Income of $103,400 or less, plus net worth and liquid asset limits.
Separate from DPA: buyers purchase a pre-built home, provide the lot, foundation, and utility hookups, and finance it through a local lender. Must be the buyer's only residence in South Dakota.
Source: www.sdhousing.org
SD Housing Tax Credit (MCC)
SDHDA
Federal tax credit for a portion of annual mortgage interest, capped at $2,000 per year. Unused credit carries forward up to 3 years.
Paired with: Conventional, FHA, VA, USDA
- First-time homebuyer: Required
- Primary residence only
- Income: SDHDA income limits; purchase price up to $410,000 ($460,000 in target areas).
Enhancement to the First-Time Homebuyer Program; must be requested with the mortgage application and cannot be added after closing. One-time $250 fee. Often combinable with down payment assistance. Not available for refinances.
Source: www.sdhousing.org
South Dakota Notes for Homebuyers
- South Dakota uses mortgages (not deeds of trust) with judicial foreclosure; title companies typically handle closings.
2026 Loan Limits in South Dakota
Conforming (Conventional)
$832,750 baseline
FHA
$541,287
Standard FHA limit, applies to most South Dakota counties.
Live DPA Pricing for South Dakota
Pricing below is sourced live from hundreds of wholesale lenders for a South Dakota scenario. Edit the inputs to match your situation.
FHA Down Payment Assistance
Up to 5% assistance; repayable second at first rate + 2% over 10 years
▸Program details
- ✓Minimum credit score: 580
- ✓Non-traditional credit also possible
- ✓Assistance up to 2.5%, 3.5%, or 5% of the lesser of purchase price or appraised value
- ✓Assistance can be used for down payment, closing costs, or both
- ✓Second lien: 10-year fixed, repayable
- ✓Second lien rate is 2% higher than the first mortgage rate
- ✓No first-time homebuyer requirement
- ✓No income cap
- ✓Purchase of primary residence only
- ✓Eligible properties: 1-unit residences, PUD, 2-4 units, FHA-approved condos, manufactured (single/double-wide)
- ✓DTI per AUS and FHA manual underwriting guidelines
- ✓First lien: FHA 30-year fixed
Assistance amount
Compare DPA options for South Dakota with live pricing
Rate Direct pairs down payment assistance with live first-lien pricing so you see the combined monthly payment up front.