Exploring Downpayment Assistance with SD Housing's Fixed Rate Plus Loan

Are you in need of downpayment and closing cost assistance but unsure where to begin? Look no further! The South Dakota Housing Development Authority offers the Fixed Rate Plus loan, which could be your ticket to affordable homeownership.

What is the Fixed Rate Plus Loan?

The Fixed Rate Plus loan provides eligible borrowers with either 3% or 5% assistance towards downpayment and closing costs. This assistance comes in the form of a second mortgage, which carries a 0% interest rate. Here are the key features:

• Downpayment Funds: Borrowers can receive either 3% or 5% of the first mortgage loan amount.

• Second Mortgage: This assistance is structured as a second mortgage with no interest, no payments, and no additional fees.

• Due-on-Sale: The second mortgage is due when you sell the home or fully pay off the first mortgage.

How Does It Benefit You?

The Fixed Rate Plus loan is designed to make homeownership more accessible by reducing the initial financial burden of buying a home. With this program, you can get the financial support you need for your downpayment and closing costs without worrying about extra monthly payments or accruing interest on the assistance amount.

Qualification and Application

To determine if you qualify for the Fixed Rate Plus loan, speak with your lender. They can provide you with detailed information on eligibility criteria and guide you through the application process. Here are the general steps:

1. Consult Your Lender: Ask your lender about the Fixed Rate Plus loan and discuss your eligibility.

2. Application Process: Your lender will help you with the application and provide details on the required documentation.

3. Receive Assistance: If you qualify, you’ll receive 3% or 5% assistance to cover your downpayment and closing costs.

Why Choose Fixed Rate Plus?

Choosing the Fixed Rate Plus loan means you’re opting for a straightforward and supportive path to homeownership. The benefits include:

• No Interest or Payments: The second mortgage carries a 0% interest rate and requires no monthly payments.

• Reduced Financial Burden: The assistance helps cover significant upfront costs, making it easier to finance your home.

• Simple Terms: With no additional fees and a clear due-on-sale term, you have a manageable financial structure.

Don’t let the initial costs of buying a home hold you back. The South Dakota Housing Development Authority’s Fixed Rate Plus loan is here to help you take the first step towards owning your dream home. Reach out to your lender today and see if you qualify for this beneficial program!