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.

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

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.

SD Housing Tax Credit (MCC) is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. A homebuyer education course is required. MCC tax credit, not cash DPA; credit % varies by loan amount (in benefits); min credit/DTI not published.

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.

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

SD Housing Tax Credit (MCC) names veterans, active-duty service members, reservists and National Guard members, surviving spouses, American Indian and Alaska Native homebuyers, educators, law enforcement officers, firefighters, healthcare workers, homebuyers with disabilities, and first-generation 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.

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

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. 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.