South Dakota homebuyers can access up to $13,000 in down payment assistance through the South Dakota Housing Development Authority (SDHDA). On the state's $306,500 median home price, that covers roughly 21% of a standard 20% down payment.
Primary Program: SDHDA Down Payment Assistance
maximum assistance
Forgiven after 7 years if you remain in the home as your primary residence.
- Administering Agency
- South Dakota Housing Development Authority (SDHDA)
- Purchase Price Cap
- $481,176
- Forgiveness Term
- 7 years
How Down Payment Assistance Works
Most state DPA programs are layered on top of a first mortgage — you apply through an approved lender who originates both the primary loan and the DPA second lien at the same closing. The DPA funds reduce the cash you need upfront.
Grants
Free money — no repayment ever. Typically the smallest amounts but highest value.
Forgivable Loans
Balance forgiven after a set period (usually 3–15 years) if you stay in the home. Selling early triggers repayment.
Deferred Loans
No monthly payments. Balance due when you sell, refinance, or pay off your mortgage.
Down Payment Calculator
Down Payment Planner
South Dakota median pre-loaded
Your Savings Plan
Timeline
10.3 yrs
saving $500/mo
No PMI at 20% down
20% or more avoids private mortgage insurance entirely.
Estimate only — does not include investment returns on savings.
Full Calculator →Frequently Asked Questions
What down payment assistance is available in South Dakota?
South Dakota's primary DPA program is the SDHDA Down Payment Assistance, administered by the South Dakota Housing Development Authority (SDHDA). It provides up to $13,000 as a forgivable loan. Forgiven after 7 years if you remain in the home as your primary residence.
How much down payment do I need in South Dakota after using DPA?
On a $306,500 home (South Dakota median), a 20% down payment is $61,300. With the SDHDA Down Payment Assistance covering $13,000, your remaining gap would be $48,300. Many buyers combine DPA with a 3–5% conventional or FHA loan to reduce their cash needed further.
Do I have to repay South Dakota down payment assistance?
Forgiven after 7 years if you remain in the home as your primary residence.
Can I combine South Dakota DPA with other assistance programs?
Yes — South Dakota's DPA programs can generally be combined ("stacked") with local city and county assistance programs, employer homebuyer benefits, and federal programs. Check with an approved lender or HUD-approved counselor to identify all programs you qualify for.
What are the income limits for South Dakota down payment assistance?
The SDHDA Down Payment Assistance uses a dollar-based income limit rather than a percentage of AMI. Check the South Dakota Housing Development Authority (SDHDA) website for current limits in your area.
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