South Dakota Debuts Forgivable Down Payment Loans for Homebuyers
The South Dakota Housing Development Authority will launch the Give Me Five program on Nov. 2, offering qualifying buyers a loan equal to 5 percent of their mortgage. The loan requires no payments and is forgiven after five years if the buyer remains in the home and meets other conditions. Eligibility includes not having owned a home in the past three years, income limits from $103,400 to $144,760, and a maximum purchase price of $410,000; up to 2,500 loans will be funded by surplus revenue from an existing first-time buyer program.
South Dakota's housing authority will open Give Me Five on Nov. 2. It offers a loan covering five percent of a mortgage, with no required payments. If the borrower stays in the property and satisfies program rules, the debt is erased after five years. Up to 2,500 such loans are authorized.
Eligibility excludes anyone who owned a home within the prior three years. Income ceilings range from $103,400 to $144,760 by county and household size, and homes may cost no more than $410,000. Surplus funds from the authority's existing first-time buyer effort, which uses tax-exempt bonds for lower-rate mortgages, pay for the initiative.
The program may ease upfront costs for renters seeking first homes, potentially widening access in a market with high rates and rising prices. It could also support home sales and construction-related activity. Because aid is capped and time-limited, effects may be modest and uneven across counties and income groups. Existing homeowners and renters not ready to buy may see little direct change.