South Dakota First-Time Home Buyer Programs and Assistance
South Dakota Housing (South Dakota Housing Development Authority / SDHDA) currently lists 1 program for South Dakota buyers. Figures below were read from the agency's own pages on September 11, 2026.
South Dakota first-time buyer programs open now
South Dakota Housing (South Dakota Housing Development Authority / SDHDA) is the state's housing finance agency (homebuyer programs page). It runs 1 down payment or closing-cost assistance program. Has not owned a primary residence in the past three years (stated in the eligibility criteria for the SD Housing Tax Credit / Mortgage Credit Certificate, which is offered as an enhancement to SD Housing's First-Time Homebuyer Program).
| Program | Type | Amount | First-time only | Min. credit | Income limit |
|---|---|---|---|---|---|
| Fixed Rate Plus (Downpayment Assistance) source | Second mortgage | 3% or 5% of the first mortgage loan amount | Check | n/a | Not published as a single statewide figure on the fetched page; |
- Fixed Rate Plus (Downpayment Assistance). Terms: 0% interest second mortgage, due-on-sale or satisfaction of the first mortgage, no payments, no additional fees Purchase price limit: $410,000 statewide, or $460,000 if the home is in a federally designated target area (limit stated on SD Housing's Mortgage Credit Certificate page for its First-Time Homebuyer Program, which this down payment assistance pairs with) Must pair with: SD Housing first mortgage loan through a participating lender Program page
Mortgage credit certificate in South Dakota
South Dakota offers a mortgage credit certificate (SD Housing Tax Credit (Mortgage Credit Certificate)), a federal tax credit on part of the mortgage interest you pay each year, for as long as you live in the home. MCC program page
How little you can put down
You do not need 20% down. Conventional loans go as low as 3% (through programs like Fannie Mae HomeReady and Freddie Mac Home Possible), FHA loans start at 3.5%, and VA and USDA loans can require nothing down. On South Dakota's median-priced home (about $318,500), 3% down is roughly $9,555. Putting 20% down lets you skip private mortgage insurance, but most first-time buyers put down far less.
Who counts as a first-time buyer
For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years, so many repeat buyers qualify again. South Dakota programs often add income and purchase-price limits, which is another reason to confirm the details with South Dakota Housing Development Authority.
Stack a buyer rebate on top in South Dakota
Down-payment assistance and a buyer commission rebate are two different things, and in South Dakota you can use both. Assistance from South Dakota Housing Development Authority helps with your down payment and closing costs; a buyer rebate returns about 2% of the price to you at closing (roughly $6,370 on a median-priced home), which can cover much of your closing bill.
See South Dakota buyer rebates → See South Dakota closing costs →
Frequently asked questions
What first-time home buyer programs are available in South Dakota?
South Dakota Housing (South Dakota Housing Development Authority / SDHDA) lists 1 program: Fixed Rate Plus (Downpayment Assistance).
Do you have to be a first-time buyer to qualify in South Dakota?
Has not owned a primary residence in the past three years (stated in the eligibility criteria for the SD Housing Tax Credit / Mortgage Credit Certificate, which is offered as an enhancement to SD Housing's First-Time Homebuyer Program).
How much down payment do you need in South Dakota?
As little as 3% on a conventional loan, 3.5% on an FHA loan, and 0% on VA or USDA loans. On South Dakota's median-priced home (about $318,500), 3% is roughly $9,555. You do not need 20% down, though 20% lets you avoid mortgage insurance.
Who counts as a first-time home buyer?
For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years. Some South Dakota programs also have income and purchase-price limits, so check with South Dakota Housing Development Authority.
Can I combine assistance with a buyer rebate in South Dakota?
Yes. A buyer commission rebate is separate from down-payment assistance and is legal in South Dakota. Assistance helps with your down payment and closing costs up front; a rebate returns about 2% of the price at closing, which you can put toward closing costs. You can use both.
Official sources
- South Dakota Housing (South Dakota Housing Development Authority / SDHDA)
- Get Downpayment Assistance, SD Housing
- SD Housing homepage
- SD Housing Tax Credit for First-Time Buyers (MCC), SD Housing
- City of Sioux Falls: Housing Programs
- Consumer Financial Protection Bureau: down payment options and how to prepare
South Dakota program details last verified against South Dakota Housing Development Authority on September 11, 2026.
Read the full guide to the cash you need to buy →
This is general information, not financial advice. Program details, limits, and loan terms change; confirm the current rules with South Dakota Housing Development Authority and your lender before you rely on them.
See first-time buyer programs in all states