The Fixed Rate Plus Option, offered by the South Dakota Housing Development Authority, is a program to be added on to a first mortgage.

The first mortgage will have an interest rate a little bit higher due to having this program. However, as much as 3% of the loan amount will be offered as a grant that does not need to be paid back to help with the down payment and closing costs.

Applicants for this program must fall under defined income limits, which vary on location and change from year to year. Homebuyer education must also be completed.

Only primary residences are allowed, and the property cannot cost more than $250,200 (for first time homebuyers) or $305,800 (for repeat homebuyers or those in a target area) as of 2020.

Other programs in South Dakota:

• HAPI Down Payment Closing Cost Assistance
• Sioux Falls Homebuyer Assistance Program

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