June 12, 2017
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South Dakota Housing Development Authority (SDHDA) recently announced a new borrower benefit for first-time and repeat homebuyers. Instead of depleting a savings account to pay for closing costs, eligible homebuyers are now able to receive a $1,500 Closing Cost Grant from SDHDA, enabling those much-needed savings for a rainy-day account.

Assistance is in the form of a grant and does not have to be repaid. Borrowers must meet certain qualification requirements including income and purchase price restrictions. The income limits vary by county and are different from SDHDA’s other homeownership programs.

Grants are available for a limited time, until funds are depleted, and loans must be closed on or before Dec. 31, 2017. The $1,500 Closing Cost Grant cannot be combined with SDHDA’s Fixed Rate Plus option, but may be used in conjunction with SDHDA’s Tax Credit (MCC) product which reduces the amount of federal income tax that homebuyers pay.

Homebuyers interested in assistance can begin the application process by visiting a lender offering SDHDA homebuyer products. A list of participating lenders can be found on sdhda.org or by calling 800.540.4241.