SDHDA announces first-time homebuyer rates starting at 3.75%

SDHDA announces first-time homebuyer rates starting at 3.75% The South Dakota Housing Development Authority (SDHDA) has announced that its 30-year fixed mortgage rate was reduced to 4.75 percent, and the starting step rate is now 3.75 percent.

"These low rates benefit more than just the homebuyers," said John Rothstein, chairman of the SDHDA Board of Commissioners. "New homebuyers provide economic benefits to everyone in the community and create a stable environment for their family."

Conventional mortgage loan rates are ranging from 5.5 percent to 6.5 percent.

The authority's step loan rate of 3.75 percent increases one-half percent per year until it reaches 5.75 percent at the beginning of the fifth year, where it remains for the balance of the 30-year term.

Income limits and purchase price limits vary by county. Refinancing existing mortgages is not permissible.

"These are the lowest rates we've been able to offer first-time homebuyers in our 30-year history," said Dar Baum, SDHDA executive director. "Now is the time to own your first home."

For more information, first-time homebuyers should contact their local lender.

SDHDA's bond program provides an ongoing source of lower-rate mortgage financing. SDHDA is a self-supporting, quasi-public agency, which receives no state general funds. The authority does not discriminate against any person because of race, color, creed, religion, sex, handicap, familial status or national origin.

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