Down payment assistance in South Dakota
South Dakota's primary statewide down payment assistance program, run by South Dakota Housing Development Authority (SDHDA). Numbers and eligibility reflect the program's published 2025 guidelines.
Fixed Rate Plus DPA
Second mortgage- Maximum assistance
- Up to 5% of loan amount as a second mortgage
- Income limit
- Up to $138,200 (varies by county)
- Home price limit
- Up to $481,176
- First-time buyer
- Preferred (some products)
- Eligible loan types
- FHA, VA, USDA, Conventional
- •Second mortgage at 1% above the first-mortgage rate, 10-year term.
- •First-Time Homebuyer program offers below-market first mortgages.
How South Dakota DPA fits into your purchase
Down payment assistance reduces the cash you need at the closing table. South Dakota's Fixed Rate Plus DPA pairs with the standard FHA, VA, USDA, or conventional first mortgage from a participating lender; the DPA flows through the same closing.
Two things to budget for: most state DPA requires a homebuyer-education course (typically online, 6-8 hours, ~$75) and you usually have to use a lender on the agency's approved list. The agency keeps the list public on its website.
Common questions
South Dakota's primary statewide DPA is Fixed Rate Plus DPA from South Dakota Housing Development Authority (SDHDA). Up to 5% of loan amount as a second mortgage. Many South Dakota cities and counties also run additional DPA layered on top.
Some product variants are first-time-buyer only; others are open to repeat buyers. Check the agency page for the current matrix.
Yes. Fixed Rate Plus DPA works with these loan types: FHA, VA, USDA, Conventional. The DPA is layered behind your first mortgage as a separate lien (or grant), and both close together.
Yes. A second-mortgage DPA has a monthly payment, and that payment is included in your debt-to-income ratio when the lender qualifies you.
Deferred and second-mortgage DPAs are generally repaid in full when you sell, refinance, or pay off the first mortgage.