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Down Payment Closing Costs Assistance

Sisseton, South Dakota

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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 Down Payment Closing Costs Assistance?

Down Payment Closing Costs Assistance is a deferred second loan for homebuyers in Sisseton, South Dakota.

  • Grow South Dakota statewide HUD HOME / CDBG-funded 0% deferred second mortgage up to $15,000 toward down payment and closing costs for buyers at or below 80% AMI. Rural / Eastern SD focus.
  • Grow South Dakota's Down Payment Closing Costs Assistance program provides 0% deferred-payment second mortgages of up to $15,000 (typical $10,000-$15,000) toward down payment, closing costs, and prepaid items for low- to moderate-income homebuyers across South Dakota. There are no monthly payments.
  • the full balance is due on sale, refinance, or non-owner-occupancy. Funded primarily through HUD HOME, CDBG, and other federal/state pass-through capital. Grow South Dakota (formerly Northeast SD CAP / GROW SD) is a Sisseton-based statewide nonprofit serving rural and Eastern/Central South Dakota. Program available statewide.
  • Funding comes from Federal and HOME.

Do you have to pay it back?

Down Payment Closing Costs 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. No monthly payments.
  • 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?

Down Payment Closing Costs 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 Grow South Dakota Homebuyer Education (in-person and online); also accepts Framework, eHome America, NeighborWorks Dakota Home Resources, Homes Are Possible Inc., or HUD-approved counseling agency.
  • Residency: Property must be located in South Dakota and serve as borrower's primary residence. Statewide eligibility with rural / Eastern / Central SD emphasis.
  • 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 in South Dakota. Annual household income at or below 80% Area Median Income for the county where property is located ($50,350 1p / $112,500 8p per HUD AMI schedule). 620 minimum mid-FICO. 45% maximum DTI. $1,000 minimum borrower contribution. Grow SD Homebuyer Education required.

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?

Down Payment Closing Costs 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: $50,350 (1p) up to $112,500 (8p). Limits vary by county; rural counties have lower limits.
  • 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?

Down Payment Closing Costs 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?

Down Payment Closing Costs 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?

Down Payment Closing Costs Assistance serves buyers purchasing in Sisseton, South Dakota.

How do you apply?

Applications for Down Payment Closing Costs 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 Grow South Dakota Homebuyer Education (in-person and online); also accepts Framework, eHome America, NeighborWorks Dakota Home Resources, Homes Are Possible Inc., or HUD-approved counseling agency..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Direct application to Grow South Dakota; first-come, first-served while funds last. Subject to HUD HOME / CDBG 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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