Down payment assistance

Down payment assistance in South Dakota

1 program can help buyers in South Dakota with a down payment and closing costs. Most are for first-time buyers with moderate incomes and are used with a participating lender.

Check which programs fit your situationDown payment assistance finder

Fixed Rate Plus Loan (Downpayment Assistance)

Open · Deferred loan

3% or 5% of the first mortgage loan amount

A 0% interest second mortgage with no payments and no additional fees, paired with a South Dakota Housing fixed-rate first mortgage. It is not forgiven: it is due when the home is sold or the first mortgage is refinanced or paid off.

Who qualifies: Available with both the First-Time Homebuyer Program (no home owned in the past three years; veterans waiver available; SD Housing income limits; purchase price limit $410,000) and the Repeat Homebuyer Program (income under $122,640 for 1-2 people or $143,080 for 3+; purchase price limit $460,000). Homebuyer education required for first-time buyers using conventional loans.

South Dakota Housing · Agency website → · Checked 2026-09-30

How assistance usually works

Most programs are a second loan with no monthly payment that is forgiven over time or repaid when you sell or refinance, and some are grants. You usually need a program first mortgage from a participating lender, a homebuyer education course and income under the program’s limit. Apply before you make offers, so your pre-approval reflects the help.

More for South Dakota

South Dakota closing costs South Dakota property taxes Where can I afford to buy in South Dakota?Down payment timeline

Programs change often; confirm the details with the agency.