SD Housing Tax Credit (MCC)

What is SD Housing Tax Credit (MCC)?

SD Housing Tax Credit (MCC) is a mortgage credit certificate for homebuyers in Pierre, South Dakota, administered by South Dakota Housing (SDHDA).

• A Mortgage Credit Certificate (MCC) giving qualified first-time homebuyers a federal income tax credit equal to a percentage of annual mortgage interest paid; remaining interest still deductible. Unused credit carries forward up to three years. Offered as an option with SDHDA's First-Time Homebuyer Program.
• Annual federal tax credit up to $2,000: 50% of mortgage interest for loans <=$150,000; 40% for $150,001-$250,000; 30% for $250,001+ (capped at $2,000/yr).
• Funding comes from Federal Mortgage Credit Certificate program.

How much assistance does it provide?

SD Housing Tax Credit (MCC) offers up to $2,000 in assistance.

• The program asks buyers to contribute $750 MCC fee, reduced to $250 if used with SDHDA's First-Time Homebuyer Program; lender may charge up to $250.
• Amounts are the program's published maximums, not an offer — South Dakota Housing (SDHDA) determines any individual award.

Do you have to pay it back?

SD Housing Tax Credit (MCC) is a tax credit rather than a loan, so there is nothing to repay.

• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

SD Housing Tax Credit (MCC) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

SD Housing Tax Credit (MCC) sets its income limit as follows: Uses SDHDA First-Time Homebuyer income limits (eff. 4/30/2025) by county & family size; targeted areas $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?

SD Housing Tax Credit (MCC) caps the purchase price at $410,000.

Is there eligibility for specific groups?

SD Housing Tax Credit (MCC) 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?

SD Housing Tax Credit (MCC) serves buyers purchasing in Pierre, South Dakota.

How do you apply?

Applications for SD Housing Tax Credit (MCC) go through South Dakota Housing (SDHDA), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program before funds are reserved.

2. 2

   Contact South Dakota Housing (SDHDA) to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 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.