🏡 First-Time Homebuyer Programs in South Dakota: What You Need to Know

By Jeff Younger — Borrow Smart Mortgages Powered by Nationwide Loans

Discover top South Dakota first-time homebuyer programs and grants to help you buy your home easily.

Buying your first home is exciting — but it can also feel overwhelming. The good news? South Dakota offers several programs designed to help first-time homebuyers with down payments, closing costs, and affordable mortgage options.

As a local mortgage expert in Sioux Falls, I’ll walk you through the most popular programs and how to qualify so you can start your homeownership journey with confidence.

1. South Dakota Housing Development Authority (SDHDA) Loan Programs

The SDHDA provides some of the most flexible mortgage options for first-time buyers in the state.

Here’s what you can expect:

• Competitive fixed interest rates

• Down payment and closing cost assistance

• Flexible credit score requirements

• Available statewide (Sioux Falls, Rapid City, and beyond)

You can combine SDHDA programs with FHA, VA, USDA, or Conventional loans for even more flexibility and savings.

2. Homeownership Assistance Program (HAP)

If saving for a down payment is holding you back, the HAP grant can make a big difference.
It provides funds for down payment or closing costs based on income and home price limits.

Local Tip: Many Sioux Falls buyers use HAP to cover closing costs, freeing up cash for moving or home upgrades.

3. USDA Rural Development Loans

If you’re buying just outside of Sioux Falls — in areas like Harrisburg, Brandon, or Tea — a USDA loan might be perfect for you.

Benefits include:

• No down payment required

• Low mortgage insurance

• Competitive fixed rates

It’s ideal for buyers who want a bit more space but still want easy access to Sioux Falls amenities.

4. FHA Loans for Flexible Qualification

First-time buyers often choose FHA loans because of their low credit score requirements and smaller down payment options (as low as 3.5%).

When combined with SDHDA assistance, this can make owning a home cheaper than renting in Sioux Falls.

How to Get Started (Simple 3-Step Plan)

1. Speak with Jeff and determine your budget and get your free credit pull. Don’t worry if your credit needs some help, we will work with you!

2. Jeff will preapprove you and together you can decide the best program for you.

3. Start your home search! If you don’t have a realtor, Jeff can recommend a top realtor in your area.

Why Work with a Local Mortgage Expert

As a Sioux Falls-based loan officer, I help first-time buyers every day find the best South Dakota programs.
Unlike national lenders, I can connect you with local grants, SDHDA options, and lender credits that fit your unique situation.

Ready to Buy Your First Home?
Contact us!

Let’s make your dream of homeownership a reality. I’ll help you explore all first-time homebuyer programs in South Dakota and find the one that fits you best.

📞 Call or Text: 605-982-7947
💬 Schedule a Free Consultation: BOOK NOW!
🌐 Visit: Jeff Younger Borrow Smart Mortgages Powered by Nationwide Loans