Closing Cost Assistance

Closing Cost Assistance is a deferred second loan for homebuyers in Aberdeen, South Dakota. HAPI Northeast SD HUD HOME / CDBG-funded 0% deferred second mortgage up to $10,000 toward closing costs for buyers at or below 80% AMI. Aberdeen-area regional focus. Homes Are Possible, Inc. (HAPI) Closing Cost Assistance program provides 0% deferred-payment second mortgages of up to $10,000 (typical $5,000-$10,000) toward closing costs and prepaid items for low- to moderate-income homebuyers in HAPI's Northeast South Dakota service area. There are no monthly payments. the full balance is due on sale, refinance, or non-owner-occupancy. Funded primarily through HUD HOME, CDBG, and SDHDA pass-through capital. HAPI is an Aberdeen-based regional housing nonprofit serving Brown County and surrounding Northeast SD counties. Funding comes from Federal and HOME.

Closing Cost Assistance 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. 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.

Closing Cost Assistance is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Limited exceptions per HUD HOME regulations. On credit, the program states: 620 minimum representative mid-FICO. A homebuyer education course is required, through HAPI Homebuyer Education (in-person Aberdeen + online); also accepts Framework, eHome America, GROW South Dakota, NeighborWorks Dakota Home Resources, or HUD-approved counseling agency. Residency requirement: Property must be located in South Dakota (typically HAPI's Northeast SD service area) and serve as borrower's primary residence. Citizenship or immigration status: U.S. citizen or eligible non-citizen per HUD HOME requirements. First-time homebuyer (no ownership of principal residence in past 3 years; some exceptions). Owner-occupied principal residence. Annual household income at or below 80% Area Median Income for the county where property is located ($52,600 1p / $119,950 8p per HUD AMI schedule). 620 minimum mid-FICO. 45% maximum DTI. $1,000 minimum borrower contribution. HAPI Homebuyer Education required. Property typically located in HAPI's Northeast SD service area (Brown, Spink, Edmunds, Faulk, McPherson, Marshall, Day, Roberts, Grant, Codington, Clark, Hamlin counties).

Closing Cost Assistance limits household income to 80% of the area median income, which varies by county and household size. 80% AMI by county per HUD income limits. Per seed: $52,600 (1p) up to $119,950 (8p). Limits vary by county. 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.

Closing Cost Assistance caps the purchase price at $385,000. Eligible property types include Single-family detached, condominium, townhouse, PUD and manufactured home on permanent foundation per first-mortgage product. New construction is eligible. Manufactured homes are eligible.

Closing Cost Assistance names veterans, active-duty service members, reservists and National Guard members, surviving spouses, and American Indian and Alaska Native homebuyers 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.

Closing Cost Assistance serves homebuyers purchasing in Aberdeen, South Dakota. The program targets specific areas: HAPI Northeast South Dakota service area: Brown, Spink, Edmunds, Faulk, McPherson, Marshall, Day, Roberts, Grant, Codington, Clark, and Hamlin counties.

Applications for Closing Cost Assistance go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Direct application to HAPI; first-come, first-served while funds last. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.