What is Fixed Rate Plus Downpayment Assistance?
Fixed Rate Plus Downpayment Assistance is a silent second mortgage for homebuyers in Pierre, South Dakota, administered by South Dakota Housing (SDHDA).
- SDHDA's Fixed Rate Plus loan provides downpayment and closing cost assistance equal to 3% or 5% of the first mortgage loan amount, as a 0% interest second mortgage with no monthly payments, due on sale or satisfaction, used with SDHDA's First-Time or Repeat Homebuyer first mortgage.
- 3% or 5% of the first mortgage loan amount toward downpayment and closing costs.
Do you have to pay it back?
Fixed Rate Plus Downpayment Assistance is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.
- The assistance is recorded in Second mortgage (subordinate to SDHDA first mortgage) position.
- Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.
Who qualifies?
Fixed Rate Plus Downpayment Assistance is open to buyers who will live in the home as their primary residence.
The program requires
- ✓The home is occupied as a primary residence
- ✓A completed homebuyer education course
- ✓Assistance amount published as a % of first mortgage; min credit score, max DTI, CLTV not published on public pages.
The program excludes
- ✕Purchases above the $410,000 price cap
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?
Fixed Rate Plus Downpayment Assistance sets its income limit as follows: Uses SDHDA First-Time/Repeat Homebuyer income limits (eff. 4/30/2025) by county and family size. Examples (2-or-less/3-or-more): Minnehaha/Lincoln $112,200/$129,030; Brown $105,400/$121,210; Pennington & all other $102,200/$117,530; Brookings $113,300/$130,295. Repeat/targeted: $122,640/$143,080.
- 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?
Fixed Rate Plus Downpayment Assistance caps the purchase price at $410,000.
Is there eligibility for specific groups?
Fixed Rate Plus Downpayment Assistance names veterans, active-duty service members, reservists and National Guard members, surviving spouses, American Indian and Alaska Native buyers, educators, law enforcement officers, firefighters, healthcare workers, buyers with disabilities, and first-generation 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?
Fixed Rate Plus Downpayment Assistance serves buyers purchasing in Pierre, South Dakota.
How do you apply?
Applications for Fixed Rate Plus Downpayment Assistance go through South Dakota Housing (SDHDA), which publishes the current terms and the application steps on its own site.
- 1
Take a homebuyer education course
Required by the program before funds are reserved.
- 2
Contact South Dakota Housing (SDHDA) to reserve funds
Funds are reserved with the provider 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.