Down Payment Help Buyers Can Get in South Dakota

Does South Dakota’s Give Me Five program still offer 5% down payment help?

The 5% assistance and five-year forgiveness period tied to Give Me Five have been reported, but I can’t confirm them as current terms. The down payment help buyers can verify through the South Dakota Housing Development Authority (SDHDA) is the Fixed-Rate Plus option, which provides up to 3% of the loan amount as gifted funds for down payment and closing costs. Confirm the exact product, percentage, and conditions with a participating lender before you count on any of it.

Key Takeaways

• SDHDA’s published materials describe up to 3% of the loan amount as gifted funds through Fixed-Rate Plus, not a verified 5% benefit.

• SDHDA says Fixed-Rate Plus assistance is a gift that does not need to be repaid, but it comes with a slightly higher mortgage interest rate.

• SDHDA defines a first-time homebuyer as someone who has not owned a home during the previous three years.

• SDHDA’s first-time-buyer materials list a purchase price below $275,000, but that figure isn’t confirmed as the Give Me Five limit.

• SDHDA homebuyer loans are originated, processed, and closed through participating lenders, so your lender choice decides whether you can use the program at all.

What down payment help buyers can verify through SDHDA?

Right now, the verifiable assistance is up to 3% of the loan amount in gifted funds through Fixed-Rate Plus, published by SDHDA. Anything beyond that, including a 5% figure or a five-year forgiveness schedule, needs confirmation from SDHDA’s current program guide or your lender’s written terms.

That gap matters. If you plan around 5% and the product delivers 3%, your cash needs change, and you may find out in the middle of a contract.

Reported terms versus published terms

Sources: SDHDA pages on financial assistance and how to apply.

Is it a gift, a second mortgage, or a forgivable loan?

SDHDA describes the Fixed-Rate Plus assistance as a gift that does not need to be repaid. The tradeoff is a slightly higher mortgage interest rate.

That is different from a deferred second mortgage or a loan that’s forgiven over five years. If a lender describes a forgiveness schedule, ask them to show you the document that creates it. Don’t assume a gift and a forgivable loan work the same way if you sell or refinance early.

Who qualifies, and what role do participating lenders play?

You generally need to meet SDHDA’s first-time-buyer definition, stay within income limits, and buy within the price limit, and you have to go through a participating lender. The details can differ by product, so your lender’s written terms are what count.

The first-time buyer test

SDHDA treats you as a first-time homebuyer if you have not owned a home during the previous three years. So if you owned a house more than three years ago, you may still qualify. Confirm with a lender, because this is a program definition, not the everyday meaning of the term.

Income, credit, and price limits

• Income: SDHDA’s materials say household income must be at or below the applicable SDHDA limits. Its repeat-homebuyer pathway lists under $93,360 for a household of two or fewer and under $105,420 for three or more. Those are repeat-buyer figures, so don’t treat them as your Give Me Five limit.

• Credit: SDHDA lists a 620 minimum credit score for the repeat-homebuyer pathway. Ask whether the same score applies to the product you’re using.

• Price: The first-time-buyer materials list a price below $275,000. That is not proven to be the Give Me Five ceiling, so confirm it before you narrow your search.

Why your lender choice matters

SDHDA says its homebuyer loans go through participating lenders. If your preferred lender isn’t one, the assistance may not be available to you, no matter how well you qualify. That’s worth knowing before you spend weeks preparing a preapproval somewhere else.

How should you build an offer budget around assistance you haven’t confirmed?

Build your budget on what’s confirmed in writing, and treat any extra assistance as upside until your lender documents it. Assistance can reduce the cash you bring, but it rarely covers everything, and a lender still decides your required contribution and other upfront items.

I tell buyers to be prepared before they ever look at homes, and for this program that means having the assistance terms in hand first. Ask your lender to put these in writing:

• The assistance percentage and whether it’s a gift, a second mortgage, or a forgivable loan.

• What it can be used for: down payment, closing costs, or both.

• The purchase-price ceiling and the income limits for your household size.

• Credit score and occupancy requirements.

• Any required buyer contribution, prepaid items, and reserves.

• Any repayment or forgiveness conditions if you sell or refinance.

• Whether the assistance can be combined with the first mortgage you’re considering, and how the interest rate compares.

The right budget depends on your income, credit, and the loan you choose, and that’s where a conversation with a local agent and a participating lender pays off. If you’re comparing communities, my posts on Sioux Falls versus Yankton and on negotiating power for Sioux Falls buyers can help once your budget is set. If you’re moving from out of state, start with how to plan a South Dakota purchase from a distance.

One more point on down payment help buyers should keep in mind: a price limit can narrow your search before you ever see a listing. Confirm it first, then shop.

FAQ

Is Give Me Five still offering 5% down payment assistance in 2026?

I can’t confirm that. SDHDA’s published materials describe up to 3% of the loan amount as gifted funds through Fixed-Rate Plus. Ask a participating lender for the current written terms before you rely on a higher figure.

What is the current Give Me Five purchase-price limit?

SDHDA’s first-time-buyer materials list a price below $275,000, but that isn’t confirmed as the Give Me Five limit. Get the program-specific ceiling from SDHDA or your lender before you set a search range.

Do I qualify as a first-time buyer if I owned a home more than three years ago?

You may. SDHDA defines a first-time homebuyer as someone who hasn’t owned a home during the previous three years. Your lender will confirm how that applies to your history.

What happens if I sell or refinance before five years?

It depends on how the assistance is structured. SDHDA describes Fixed-Rate Plus as a gift that does not need to be repaid. If a lender tells you a forgiveness period applies, ask for the document that spells out the repayment conditions.

Can I use SDHDA assistance when buying in Sioux Falls, Lincoln County, or Minnehaha County?

Likely, but I can’t confirm county-by-county limits for Minnehaha, Lincoln, or nearby counties. Income limits and participating lenders should be confirmed with SDHDA or the lender handling your preapproval.

What’s the next step for Southeast SD buyers?

Start with an SDHDA participating lender, get the assistance terms in writing, and set your offer budget on what’s confirmed. As a Southeast SD broker working out of Vermillion, Sioux Falls, and Yankton, I can walk you through the numbers and point you toward lenders who work with these programs. When you’re ready, let’s work together, or download your buying, selling and relocation guides here.

About Michelle Maloney

Born and raised in Sioux Falls, Michelle has represented buyers and sellers in real estate transactions for 19 years. She lives in Vermillion, SD, with her husband Kevin and their two dogs, and opened Maloney Real Estate in Vermillion in 2013, followed by Sioux Falls in 2022 and Yankton in 2025.

Maloney Real Estate · (605) 624-3333

Equal Housing Opportunity. This article is general information, not legal, tax, or financial advice. Confirm your own numbers and program terms with your lender, title company, and tax advisor.