Frequently Asked Questions
1) How do I know if I can afford a home?
2) What type of financing is available?
3) How do I qualify for the First Time Home Owner program?
4) What's available in town?
5) Is there down payment assistance?
6) How do I qualify for a Governor's house?
7) Is there any one local who can answer my housing questions?
8) How can I locate rentals?
9) How can I get help to avoid forclosure?
1) How do I know if I can afford a home?
Home ownership may be more affordable than you think. Whether you are a first time or second time homebuyer, there are many programs to help you buy a home.
Rural development offers guaranteed and direct loans to qualified applicants. These loans and grants can be used to purchase new, existing or make needed improvements to existing homes.
Home ownership should start with homebuyer education. Find out what ratios the lenders look at, how your other debts affect your ability to purchase a home and what you need to do to be in the position to purchase a home.
HERO Expansion is a mortgage program designed to support neighborhood stabilization by providing first mortgage financing to encourage first-time homebuyers and existing homeowners to purchase and/or purchase and rehabilitate foreclosed or abandoned properties including properties conveyed by deed in lieu of foreclosure or short sale. Your lender can determine whether or not the abandoned property meets the requirements for the HERO Expansion Program. These mortgages will be underwritten in conjunction with existing FHA Mortgage Insurance program guidelines.
Follow this link for more information regarding the HERO Expansion Program.
2) What type of financing is available?
USDA Housing and Community Facilities Programs
The USDA has Housing and Community Facilities Programs that help rural communities and individuals by providing loans and grants for housing and community facilities. They provide funding for single family homes, apartments for low-income persons or the elderly, housing for farm laborers, childcare centers, fire and police stations, hospitals, libraries, nursing homes, schools, and much more.
In partnership with non-profits, Indian tribes, state and federal government agencies, and local communities, HCFP creates packages of technical assistance and loan and grant funds to assist more rural communities and individuals.
Follow this link for more information regarding the USDA Housing and Community Facilities Programs.
US Department of Housing and Urban Developement
Owning a home is a big part of the American Dream. Follow this link for more information regarding the various HUD opportunities.
Rural Development Guaranteed Housing Loans (Section 502)
The Rural Housing Service (RHS) is a part of Rural Development (RD) in the U.S. Department of Agriculture (USDA). It operates a broad range of programs that were formerly administered by the Farmers Home Administration to support affordable housing and community development in rural areas. RHS both provides direct loans (made and serviced by USDA staff) and also guarantees loans for mortgages extended and serviced by others.
Click here to download a PDF file about the Rural Development Guaranteed Rural Housing Loans (Section 502).
Rural Development Direct Housing Loans (Section 502)
Rural Housing Direct Loans are loans that are directly funded by the Government. These loans are available for low- and very low-income households to obtain homeownership. Applicants may obtain 100% financing to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwellings located in rural areas. Mortgage payments are based on the household's adjusted income.
Follow this link for more information regarding the Rural Development Section 502 Direct Housing Loans.
3) How do I qualify for the First Time Home Owner program?
The South Dakota Housing Development Authority First-Time Homebuyer Program provides low interest rate fixed mortgage loans and cash assistance for homebuyers purchasing a residence in the state of South Dakota.
To qualify for a First-time Homebuyer Loan:
• You cannot have resided in a home which you own during the previous three years. For the purpose of determining prior homeownership, residing in a dwelling unit that was not permanently affixed to a permanent foundation is not considered prior homeownership. Additionally, Veterans who are second-time homebuyers may qualify under a "Veteran's Waiver."
• Your total household income cannot exceed the federally-imposed income limit for the county in which the property is located.
• The purchase price of the home cannot exceed the federally-imposed purchase price limits.
• All loans must meet lending standards of creditworthiness and be insured or guaranteed against default by the Federal Housing Administration (FHA), Veteran's Administration (VA), USDA Rural Development or insured by a private mortgage insurance (PMI) company. Mortgage Insurance is not required if your downpayment is 20% or more.
• All single family residences must be owner-occupied, one to four family units. Dwellings with two to four family units cannot have been newly constructed within the last five years.
4) What's available in town?
Centerville
Click here for homes for sale in Centerville, SD at Homes.com.
Click here for homes for sale in Centerville, SD at AOL.com.
Canton
Click here for homes for sale in Canton, SD at Homes.com.
Click here for homes for sale in Canton, SD at AOL.com.
Garretson
Click here for homes for sale in Garretson, SD at Homes.com.
Click here for homes for sale in Garretson, SD at AOL.com.
Hartford
Click here for homes for sale in Hartford, SD at Homes.com.
Click here for homes for sale in Hartford, SD at AOL.com.
5) Is there down payment assistance?
Employer Mortgage Assistance Program (EMAP)
The South Dakota Housing Development Authority Employer Mortgage Assistance Program (EMAP) provides downpayment and closing cost assistance in the form of a second mortgage for homebuyers who are employed with a Participating Employer.
The interest rate for EMAP Loans is 2.0%. EMAP Loans have level monthly payments and five (5) year terms. Loan amounts range between $600 and $6,000.
Follow this link for more information regarding the Employer Mortgage Assistance Program.
Loan Assistance Program (LAP)
The South Dakota Housing Development Authority Loan Assistance Program (LAP) provides downpayment and closing cost assistance in connection with a home purchase financed by a first mortgage loan through an approved South Dakota Housing Development Authority (SDHDA) Participating Lender.
The interest rate for LAP Loans is 5.0%. LAP Loans have level monthly payments and a loan term of 5 years. Loan amounts up to $5,000.
Follow this link for more information regarding the South Dakota Housing Development Authority Loan Assistance Program.
Federal Home Loan Bank of Des Moines 2011 Rural Homeownership Fund Program
The Federal Home Loan Bank of Des Moines will allocate $1,000,000 to the Rural Homeownership Fund Program (RHF). Members can use the funds to help eligible homebuyers purchase single-family owner-occupied properties in rural areas, using funds for down payment, closing cost, or rehabilitation associated with the home purchase.
Follow this link for more information regarding the Federal Home Loan Bank of Des Moines 2011 Rural Homeownership Fund Program.
6) How do I qualify for a Governor's house?
In 1996, the Governor's House program was created as a way to provide reasonably sized, affordable homes to income-qualified individuals and families.
More than 1,900 Governor's Houses have been sold to elderly, persons with disabilities, and income-qualified families in South Dakota. These South Dakota residents have a quality, low-cost, low-maintenance, energy efficient place to call home.
• Household income cannot exceed $35,760 for couples or individuals and $41,720 for families of three or more.
• For families and individuals under the age of 62, net worth must be less than $90,000 and less than $70,000 in liquid assets. For families and individuals age 62 and older, net worth must be less than $175,000 and less than $100,000 in liquid assets.
• The house must be used as the homebuyer's only residence.
• The house must be placed within South Dakota and be owned by the individual(s) living in the home.
Follow this link for more information regarding the Governor's House program.
7) Is there any one local who can answer my housing questions?
Local names, phone numbers, email addresses here.
8) How can I locate rentals?
Centerville
There are two bedroom, 1-3/4 bath town homes available for rent from the Housing Redevelopment Commission in Centerville, SD. Each unit is 1,180 sq ft plus an attached 300 sq ft garage, handicap accessible, single level with no steps. Senior friendly, but not senior exclusive! For more info and a rental application, please call Mary Clayton at 605.552.2149.
Click here for more information and pictures regarding the town homes available for rent from the Housing Redevelopment Commission in Centerville, SD.
Click here to go to the Centerville, SD home page.
Click here to view Centerville, SD apartments for rent at MyNewPlace.com.
Canton
Click here to view Canton, SD apartments for rent at Yahoo.com.
Click here to view Canton, SD apartments for rent at MyNewPlace.com.
Click here to view Canton, SD apartments for rent at Hotpads.com.
Garretson
Click here to view Garretson, SD apartments for rent at DexKnows.com.
Click here to view Garretson, SD apartments for rent at RentLizard.com.
Click here to view Garretson, SD apartments for rent at MyNewPlace.com.
Hartford
Click here to view Hartford, SD apartments for rent at Harford Chamber of Commerece web site.
Click here to view Garretson, SD apartments for rent at MyNewPlace.com.
Click here to view Garretson, SD apartments for rent at RentalHouses.com.
9) How can I get help to avoid foreclosure?
Housing counseling agencies offer guidance on homebuying, renting, reverse mortgages and default and foreclosure prevention.
Click here to view a list of addresses for Housing counseling agencies.
Click here to download a PDF file from the HUD about foreclosure.