Buying a home for the first time in Sioux Falls
SD? Interest rate as low as 3.75% with First-time Homebuyer
Program and a down payment assistance program Through SDHDA South Dakota
Housing Devolopment Authority
And of course the $8,000 Tax Credit form the
Federal government is still in effect for 2010 find out more info here
SDHDA offers Three Rate Options:
Step Rate - The interest rate starts at a
predetermined affordable rate and increases one-half of one percent per year for
the first four years and then becomes fixed at the beginning of the fifth year,
where it stays for the remaining term of the loan.
Fixed Rate - The interest rate is fixed for
30 years.
Fixed Rate Plus - This is the newest rate option offered by
SDHDA. The interest rate is fixed for 30 years and it provides a 3%
gift for downpayment and closing costs.
Current Interest Rates
3.75% Starting Step
4.75%
Fixed
5.25% Fixed Rate Plus
4.85% Advance Tax Credit
Commonly known as the
"First-time Homebuyer Program", this program provides below-market fixed
interest rate mortgage loans and cash assistance for homebuyers purchasing a
residence in the state of South Dakota.
Participating Lenders originate, process and close the loans. On behalf of
SDHDA, five Master Servicers collect mortgage payments and otherwise service the
loans. Cash assistance is available for downpayment and closing cost assistance
with the Fixed Plus Rate Option.
Income Limits
DHDA sells tax-exempt Mortgage Revenue Bonds
(MRB) to investors in order to finance the First-time Homebuyer
Program. These MRBs are subject to federal regulation. These federal
regulations require that SDHDA impose both income limits and purchase price
limits on First-time Homebuyer Program loans.
Income Limits
The Income Limits generally change on an
annual basis, usually in the spring of each year. The limits may vary based
on the county in which the home is located. Your total gross household
income cannot exceed the limits in effect at the time you close on your
loan.
Purchase Price Limits
The Purchase Price Limits may or may not change each year. When determining
the total purchase price of a home you must include all amounts paid to
acquire the home, such as any repair costs, the cost of acquiring the land
(if new construction), etc. If you are obtaining the home from a friend,
employer or relative (non-arm's length transaction), the appraised value
will be considered to be the purchase price.
The Purchase Price Limits may vary based on the county in which the property
is located.
Click here for a printable list of
First-time Homebuyer Income and Purchase Price Limits.
(.pdf format)