Income guidelines increase for first-time homebuyers

Income guidelines increase for first-time homebuyers The South Dakota Housing Development Authority (SDHDA) announced that the federal income limits that establish eligibility for SDHDA's First-time Homebuyer programs have increased. That means more first-time homebuyers are now within the income guidelines to purchase a home at lower interest rates.

"The increased income limits have come at a great time for potential home buyers," said Dar Baum, SDHDA executive director. "SDHDA interest rates remain at record lows and we are moving into another strong buyer's year."

SDHDA's First-time Homebuyer Program interest rates currently start at 3.95 percent for the step rate option and 4.95 percent for the fixed rate. SDHDA also has programs available to help first-time homebuyers with down payments and closing costs. SDHDA urges prospective first-time homebuyers to contact a participating lender for further information on the homeownership program requirements and interest rates.

The federally imposed homebuyer limits are based on 100 percent of median income for one and two member families, and 115 percent of median income for three or more member families.

The federal government also increased income limits for those seeking affordable rental housing. The increased limits will provide a real benefit for single head-of-household families. Often times one-earner households have had incomes just over the qualifying amount for affordable housing causing them to pay as much as $200 per month more as a result. The new increased income limits will allow these households more affordable rental housing opportunities.

For a complete listing of First-time Homebuyer Program income and purchase price limits, visit SDHDA's Web site at www.sdhda.org.

The South Dakota Housing Development Authority (SDHDA) is an independent, quasi-public agency that finances and develops affordable housing opportunities for low and moderate-income residents throughout South Dakota. SDHDA is totally self-supporting and receives no tax money, appropriations or other funding from the state. SDHDA does not discriminate against any person because of race, color, creed, religion, sex, handicapped, familial status or national origin.

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