The Sioux Falls Homebuyer Assistance program was founded in 1998 and since then has helped many low and moderate-income families own homes.
As much as $5,000 is offered as a deferred-payment loan with 0% interest. This only becomes due once the property is sold or is no longer the borrower’s primary residence.
In order to qualify for this loan, an applicant must have a household annual income less than 80% of the area median income. Further, applicants must be first-time homebuyers, displaced homemakers, families living in manufactured housing, or families living in housing that cannot be rehabilitated. Individuals who apply must be able to show that they’re financially responsible by having no past-due bills or debts and having a history of paying all financial obligations in a timely manner. In the event that an application is denied due to financial irresponsibility, the applicant can reapply either six months after becoming current on all financial obligations, or six months after the first application was denied (whichever is second).
Applicants must also have a first mortgage that falls within specified criteria for this program. The maximum allowed debt-to-income ratio is 43%, and the maximum housing expense ratio is 31%. Individuals who apply also cannot have more than $10,000 in liquid assets, but must be able to put forth at least $500 towards the home purchase. Finally, the applicant must finish a homebuyer education course offered by the Homeownership Education Resource Organization.
The property being purchased using this program must be a single-family detached house with a permanent foundation in a specified target area. Furthermore, the purchase price cannot be more than $137,000. All houses must have an inspection done.
Other programs in South Dakota: