New Program Helps South Dakotans Purchase Manufactured Homes

To help remove another barrier to affordable homeownership, South Dakota Housing’s Board of Commissioners approved a new initiative to increase access to manufactured housing across the state.

The newly created Manufactured Housing Downpayment Program (MHDP) will provide down payment assistance to eligible homebuyers purchasing manufactured homes. Manufactured housing is quickly becoming an affordable alternative to traditional site-built construction, especially in rural areas.

Unlike traditional mortgage financing backed by Fannie Mae or Freddie Mac, many manufactured housing loans require specialized financing that often includes a significant down payment requirement. National lenders typically require a minimum down payment of 5%, while local lenders may require 10% or more. These requirements can create a hurdle for otherwise qualified buyers.

The MHDP was developed to assist households that qualify for manufactured housing financing but need help meeting the required down payment. The program provides a homeownership opportunity similar to the down payment assistance programs SD Housing offers for traditional housing through programs such as the Fixed Rate Plus loan.

To qualify, a household's annual gross income may not exceed 120% of the county Area Median Income (AMI) or the state AMI, whichever is greater. Eligible homebuyers may receive assistance equal to up to 50% of the lender's required minimum down payment, not to exceed $10,000.

Lenders interested in learning about the new program, can contact Rebecca Whidby at 605.773.3181 or by emailing rebecca@sdhda.org. Homeowners interested in accessing this assistance should work with their local lender.

By expanding access to manufactured housing, SD Housing aims to increase affordable homeownership opportunities, strengthen communities, and help meet the state's growing housing needs.