State Housing Starts Program for Downpayment Assistance
State Housing Starts Program for Downpayment Assistance
South Dakota Housing (SDH), in partnership with Governor Larry Rhoden, is launching a program aimed at assisting first-time homebuyers overcome one of the biggest barriers in purchasing their first home in South Dakota.
Through Give Me Five, eligible first-time buyers can receive a five percent boost toward downpayment assistance for their first home, through a five-year forgivable loan.
“Every South Dakotan should have the opportunity to build a strong future right here in our state – and buying a home is often a big part of that process,” said Rhoden. “This initiative, along with the largest property tax cut in South Dakota history, will make homeownership more affordable. It will help South Dakotans put down roots, raise their families, and build a life in the state they call home.”
The Give Me Five program will launch November 2 and will be open to homebuyers who meet certain criteria.
They must meet First-Time Homebuyer Program income requirements; be purchasing a primary residence in South Dakota; have not owned a home in the past three years; and be wanting to purchase a home with a purchase price of $410,000 or less.
Highlights of the Give Me Five program include that it provides five percent of the first mortgage amount in downpayment assistance; the assistance provided as a second mortgage, with no monthly payments, and the second mortgage is forgiven after five years of the homebuyer living in the home as their primary residence and all program requirements are met.
“In today’s challenging housing market, first-time homebuyers need every advantage they can get,” said Chas Olson, executive director of South Dakota Housing. “The Give Me Five program will be a valuable tool in helping them overcome affordability barriers and achieve homeownership.”
The SDH leadership team plans to offer the program for a limited time through participating lenders, with per-beneficiary assistance at five percent of the loan amount. In order to apply for the program, participants must contact a lender to set an appointment.
