WHERE FIRST-TIME HOMEBUYERS’ DREAMS TAKE SHAPE
What is the First-Time Homebuyer Program?
A program that makes the dream of homeownership a reality for South Dakota first-time homebuyers by providing low-interest-rate mortgage loans. SD Housing partners with participating lending institutions throughout the state to help borrowers build or purchase an existing home.
Find Out If You Qualify
Take our quick qualifying quiz to find out what programs you may be eligible for as a first-time homebuyer in South Dakota.
Available Loans
Fixed-Rate Buy Down
A Fixed-Rate Buy Down lets you lower your interest rate upfront by paying a 1% discount point at closing. This option can reduce your monthly payment from day one—making homeownership more affordable in the first years of your loan. A smart choice for buyers planning to stay in their home long-term and wanting the lowest possible fixed rate.
GOVERNMENT
FHA, VA & USDA Rural Development
CONVENTIONAL
PMI Insured & Uninsured
Fixed-Rate Buy
A traditional 30-year fixed-rate loan gives you predictable monthly payments and SD Housing’s most competitive interest rate. This is the simplest, most stable option—ideal for buyers who want a straightforward loan without additional assistance or discount points.
GOVERNMENT
FHA, VA & USDA Rural Development
CONVENTIONAL
PMI Insured & Uninsured
Fixed Rate Plus Loan 3%
The Fixed-Rate Plus 3% option pairs a fixed-rate mortgage with downpayment and closing-cost assistance equal to 3% of your loan amount. Assistance is provided as a 0% second mortgage that’s due when you sell or refinance. This option is designed for first-time buyers who qualify for the home but need extra help covering upfront costs. Rates are slightly higher than the standard fixed-rate loan to account for the added assistance.
GOVERNMENT
FHA, VA & USDA Rural Development
CONVENTIONAL
PMI Insured & Uninsured
Downpayment and closing cost assistance as a second mortgage at 0%, with no payments. The amount is equal to either 3% of the first mortgage loan amount.
Fixed Rate Plus Loan 5%
The Fixed-Rate Plus 5% option offers the maximum level of assistance—5% of your loan amount—to help with downpayment and closing costs. Like the 3% option, the assistance comes as a 0% second mortgage due upon sale or satisfaction of the first mortgage. This is a strong fit for buyers who want the most support getting into their home with minimal upfront cash, while still benefiting from a secure, fixed 30-year rate.
GOVERNMENT
FHA, VA & USDA Rural Development
CONVENTIONAL
PMI Insured & Uninsured
Downpayment and closing cost assistance as a second mortgage at 0%, with no payments. The amount is equal to either 5% of the first mortgage loan amount.
Curious about today’s mortgage rates? See how affordable homeownership can be with SD Housing.
Interest Rates are for a 30-year fixed-rate mortgage. Interest Rates are subject to change without prior notice. This is not a commitment to lend. SD Housing does not lend money directly to consumers. We use approved participating lenders to qualify consumers and make all mortgage loans. Homebuyers interested in applying for financing should contact one of SD Housing’s participating lenders.
This is not an advertisement for credit as defined in Regulation Z; contact a participating SD Housing lender for Annual Percentage Rate (“APR”) information.
Program Eligibility Quiz
How Do You Get a First-Time Homebuyer Loan?
Securing a first-time homebuyer loan may seem hard, but the process can be easy by following these steps on what to expect when applying for a home loan as a first-time homebuyer:
Review Your Financial Situation
Before applying, it’s important to check your finances. This includes checking your credit score, calculating your debt-to-income ratio, and saving for a downpayment. A clear understanding of your finances will help you determine how much home you can afford.
Determine if You Qualify
To qualify as a first-time homebuyer, you must not have owned a home in the past three years. If you previously owned and lived in a dwelling that was not permanently affixed to a foundation (such as a mobile home), it doesn’t count as prior homeownership. You’ll also need an income at or below the prescribed South Dakota Housing Income Limits and a home purchase price of $410,000 or less.
Get Pre-Approved by a Participating Lender
The next step is to get pre-approved for a mortgage. This involves submitting an application to a participating lender, who will review your credit score, income, and debt to provide you with a pre-approval amount. This pre-approval shows sellers that you’re serious about buying and helps narrow down your home search to properties within your budget.
Find Your New Home
Your new home could be closer than you think! To qualify, the home you’re purchasing must be in South Dakota and priced at $410,000 or less. From city neighborhoods to small-town streets and open-country living, SD Housing helps make finding a place to call your own more affordable—wherever you want to put down roots.
Apply for a First-Time Homebuyer Loan
Once you find the right home, it’s time to apply for a loan. Many eligible borrowers turn to specific programs designed to make homeownership more affordable. South Dakota Housing offers several options, such as the First-Time Homebuyer Program and the Fixed Rate Plus Loan, which provide downpayment assistance and low fixed-rate mortgages. These programs make it easier to cover upfront costs and secure financing.
Start Your Homebuying Journey
Connect with an SD Housing Participating Lender to explore your loan options, ask questions, and begin the application process with confidence.
First-Time Homebuyer Facts
First-Time Homebuyer Resources
Find A Lender
Interest Rates
Recapture Tax
SDHDA’s Tax Credit (MCC)
Income & Purchase Price Limits
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South Dakota Housing provides homebuyer programs designed to help first-time buyers secure affordable loans. Options include downpayment assistance and the Governor’s House Program, offering support to make homeownership more accessible.