Updated 1/26/2026

These programs can only be handled by approved lenders. If you would like help from a local realtor familiar with the programs and lenders, fill out this form here and I will connect you with one.

I've included all of the links and contact info needed to do this on your own, the form is meant to make it easier.

Connect with a DPA team

How Down Payment Assistance Works

I need to give a quick overview of how down payment assistance works. After that, the programs are listed.

With down payment assistance, you'll run into two different types:

  • A grant

  • A loan

A Grant

If we meet the qualifications up front, then it's money that does not need to be repaid.

A Loan

If the down payment assistance comes in the form of a loan, then pay attention to the three different types:

  • Repayable

  • Deferred

  • Forgivable

Repayable is just as most imagine. It charges interest over a certain amount of time, with monthly payments until it's paid off.

Deferred loans usually don't require a monthly payment, and typically don't charge interest. It's due in full when you refinance, sell the home, or when it ceases to be your primary residence.

Forgivable loans will disappear if you meet the criteria, which usually comes down to keeping the home as your primary residence for a specific amount of time.

Okay with that, here are the programs!

South Dakota

South Dakota Housing Development Authority (SDHDA) Fixed Rate Plus Program

  • Assistance: Provides a cash grant equal to 3% of the first mortgage loan amount for down payment and closing costs.

  • Terms: Gift (Grant). There is no repayment required and no second mortgage lien. (Note: Choosing this option typically results in a slightly higher interest rate on your first mortgage).

  • Eligibility: Available to first-time homebuyers (and repeat buyers in targeted areas) who meet income and purchase price limits. Must be paired with an SD Housing First-Time Homebuyer mortgage.

  • More Information: SDHDA Fixed Rate Plus Program

Governor’s House Program

  • What It Offers: A physical, low-cost manufactured home (approx. $89,900 for the house itself) delivered to your lot. It is not a cash DPA loan, but a subsidized housing purchase program.

  • Eligibility: Low-to-moderate income households (approx. income limit $71,540 for 1-2 people; $81,760 for 3+ people). You must own the lot and arrange for the foundation/utilities.

  • More Information: Governor’s House Program

GROW South Dakota Down Payment and Closing Cost Assistance

  • Assistance: Provides loans typically ranging from $5,000 to $10,500 for down payment and closing costs.

  • Terms: 0% interest deferred loan. No monthly payments. Repayment is due only when the home is sold, refinanced, or no longer the primary residence.

  • Eligibility: Buyers purchasing in rural areas and specific counties; income limits apply (often 80% AMI).

  • More Information: GROW South Dakota

Sioux Falls Public Safety Down Payment Assistance Program

  • Assistance: Provides forgivable loans to encourage public safety employees to live within the city.

  • Terms: Forgivable loan. Forgiven over a set period of residency.

  • Eligibility: Sworn police officers and firefighters employed by the City of Sioux Falls.

  • More Information: Sioux Falls Public Safety Assistance

Sioux Falls Neighborhood Revitalization

NeighborWorks Dakota Home Resources

  • Assistance: Offers multiple loan products for the Black Hills/Western SD region:
    • HOF Loan: Up to $5,000 (0% deferred loan).

    • Neighbor Next Door: Up to $7,500 for teachers, police, and nurses (low-interest, 10-year term).

    • Legacy Fund: Up to $2,000 for single parents.

  • Eligibility: Income limits vary by product (e.g., 115% AMI for HOF; 150% AMI for Neighbor Next Door).

  • More Information: NeighborWorks Dakota Home Resources

Homes Are Possible, Inc. (HAPI)

  • Assistance: Provides grant funds (often $2,000 to $5,000) for closing costs and down payment.

  • Terms: Grant (or forgivable loan depending on the specific funding source).

  • Eligibility: Focuses on Northeast South Dakota (e.g., Brown County/Aberdeen). Income limits apply.

  • More Information: HAPI Assistance Programs

Updated 1/26/2026

These programs can only be handled by approved lenders. If you would like help from a local realtor familiar with the programs and lenders, fill out this form here and I will connect you with one.

I've included all of the links and contact info needed to do this on your own, the form is meant to make it easie