House options increase for first-time homebuyers The South Dakota Housing Development Authority Board of Commissioners increased purchase price limits for the First-time Homebuyer Loan Program.
The limit increases to $189,682 for both existing and new construction single homes in most counties. That limit rises to $231,833 for certain federally designated Targeted Areas, including parts of Bennett, Buffalo, Corson, Dewey, Jackson, Lyman, Shannon, Todd, and Zeibach Counties.
"We strive to offer first-time homebuyers the best opportunities possible to become homeowners," said John Rothstein, chairman of the board. "We're pleased that these new limits apply across the board to new construction and existing homes, especially when our low interest rates still make homeownership so possible."
SDHDA's First-time Homebuyer interest rates continue to be 4.75 percent for the 30-year Fixed Rate and the 3.75 percent for the starting Step-Rate.
"This significant increase to the limits comes as a result of action taken by the Internal Revenue Service," according to Dar Baum, SDHDA executive director. Previous purchase price limits, which varied by county, ranged as low as $113,210 for existing housing in most counties of the state to as high as $149,103 for new construction statewide.
In 1994, the IRS discontinued publishing Purchase Price Limits for this program, which had made it difficult for SDHDA to serve some first-time homebuyers.
"The increase is welcome," said Baum.
"however, it is still the federal income limit and the family's income that governs the purchase price of the home they buy.
For more information about the First-time Homebuyer Program and SDHDA's full line of affordable downpayment and closing cost assistance programs, people should talk to their local lender or visit 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.