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Closing Cost Assistance

Aberdeen, South Dakota

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See what you qualify forOfficial program site →
Income limit

80% AMI

Of area median income; varies by county and household size

Price cap

$385,000

Highest purchase price the program allows

Repayment

Deferred

No payments until the home is sold or refinanced

What is 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.

Do you have to pay it back?

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.

Who qualifies?

Closing Cost Assistance 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: Limited exceptions per HUD HOME regulations.
  • The home is occupied as a primary residence
  • On credit: 620 minimum representative mid-FICO.
  • A completed homebuyer education course, 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: 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).

The program excludes

  • Purchases above the $385,000 price cap
  • Households above 80% of area median income

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?

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.

What kind of home can it be used for?

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.

Is there eligibility for specific groups?

Closing Cost Assistance 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?

Closing Cost Assistance serves buyers 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.

How do you apply?

Applications for Closing Cost Assistance go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, 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..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Direct application to HAPI; first-come, first-served while funds last., 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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