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CDFI Deferred DPCC

Rapid City, South Dakota

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Income limit

$123,300

The household income limit the program publishes

Price cap

$385,000

Highest purchase price the program allows

Repayment

Deferred

No payments until the home is sold or refinanced

What is CDFI Deferred DPCC?

CDFI Deferred DPCC is a deferred second loan for homebuyers in Rapid City, South Dakota.

  • NWDHR CDFI-funded 0% deferred second mortgage up to $15,000 toward down payment and closing costs. 620 FICO, 45% DTI, $1,000 borrower contribution. Western SD focus.
  • NeighborWorks Dakota Home Resources (NWDHR) CDFI Deferred DPCC is a Down Payment / Closing Cost (DPCC) assistance second mortgage funded through NWDHR's Community Development Financial Institution (CDFI) capital pool. The program provides 0% deferred-payment second mortgages of up to $15,000 (or higher in some cases) toward down payment, closing costs, and prepaid items. There are no monthly payments.
  • the full balance is due on sale, refinance, transfer of title, or when the home ceases to be the borrower's primary residence. Available primarily in Western South Dakota (Black Hills region) and statewide for SDHDA-paired transactions.
  • Funding comes from CDFI.

Do you have to pay it back?

CDFI Deferred DPCC is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

  • Repayment is triggered by Full balance due on sale, refinance, payoff of first mortgage, transfer of title, or non-owner-occupancy. No monthly payments during the life of the first mortgage.
  • The assistance is recorded in 2nd Lien position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

CDFI Deferred DPCC is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: Targeted neighborhoods (NWDHR Neighbor Next Door target areas) waive the FTHB requirement.
  • The home is occupied as a primary residence
  • On credit: 620 minimum representative mid-FICO across NWDHR DPCC variants.
  • A completed homebuyer education course, through NWDHR Homebuyer Education (required); also accepts SDHDA-approved providers (GROW SD, HAPI, Framework, eHome America).
  • Residency: Property must be located in NWDHR's South Dakota service area (primarily Western SD / Black Hills counties: Pennington, Meade, Lawrence, Custer, Fall River) and serve as borrower's primary residence.
  • Citizenship or immigration status: U.S. citizen, permanent resident alien, or qualifying non-permanent resident alien.
  • First-time homebuyer (no ownership of principal residence in past 3 years; some exceptions in targeted neighborhoods). Owner-occupied principal residence. Household income $63,000-$123,300 by household size. 620 minimum mid-FICO. 45% maximum DTI. $1,000 minimum borrower contribution. NWDHR Homebuyer Education required. Property within Western South Dakota service area or otherwise approved by NWDHR.

The program excludes

  • Purchases above the $385,000 price cap
  • Households above $123,300

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

CDFI Deferred DPCC limits household income to $123,300.

  • The limit applies to total household income, not only the borrower’s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

CDFI Deferred DPCC caps the purchase price at $385,000.

  • Eligible property types include Single-family detached, condominium, townhouse, PUD. Manufactured home on permanent foundation per first-mortgage product.
  • New construction is eligible.
  • Manufactured homes are eligible.

Is there eligibility for specific groups?

CDFI Deferred DPCC names veterans, active-duty service members, reservists and National Guard members, surviving spouses, and American Indian and Alaska Native buyers among the groups it serves.

  • Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

CDFI Deferred DPCC serves buyers purchasing in Rapid City, South Dakota.

  • The program targets specific areas: NWDHR Western South Dakota service area: Pennington, Meade, Lawrence, Custer, and Fall River counties (Black Hills region).

How do you apply?

Applications for CDFI Deferred DPCC go through the administering agency.

  1. Take a homebuyer education course

    Required by the program, through NWDHR Homebuyer Education (required); also accepts SDHDA-approved providers (GROW SD, HAPI, Framework, eHome America)..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Direct application to NWDHR; reserved at lender intake. Funds available on first-come, first-served basis subject to CDFI capital pool availability., and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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