Down Payment Closing Costs Assistance FAQs

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Funding: Down payment and closing cost assistance through GROW SD, amount depends on area (rural vs urban), household income, and fund availability.Deferred loanRollingScope: Statewidestate

Updated: Dec 1, 2025

Summary

GROW South Dakota’s Down Payment Closing Costs Assistance programs offer most qualifying buyers between $5,000 and $7,500 in 0% interest, deferred loans to help cover down payment and closing expenses when purchasing a home in eligible South Dakota communities.

Benefits

Down payment assistanceClosing cost assistanceGap financing

Who Can Apply

Individual

Eligible Locations

South Dakota homebuyers who qualify under GROW SD income and area guidelines.

Eligibility

Homebuyers in eligible South Dakota rural and urban areas who secure financing from a GROW SD-approved first mortgage lender, meet income (often ≤80% AMI) and purchase price limits, complete approved homebuyer education, and provide required documentation

Full Description

This FAQ page explains how GROW South Dakota’s down payment and closing cost assistance works, including typical assistance ranges, eligibility rules, and application steps. Most programs provide $5,000–$7,500 as a 0% interest, deferred-payment second mortgage that becomes due when the home is sold, refinanced, no longer owner-occupied, or the first mortgage matures. To qualify, buyers must obtain financing from a GROW SD-approved first mortgage lender, meet income limits (generally around 80% of area median income, depending on funding source), stay within purchase price caps, complete an approved homebuyer education course, and submit documentation such as proof of income, assets, and a fully executed purchase agreement. The FAQ also outlines timing expectations, indicating that eligibility decisions are typically made within a few days after all documents are received and that funds must be requested well in advance of closing.

Verification & Details

Complexity: Moderate

Confidence: 80%

Source: growsd.force.com

Based on public FAQ page; GROW SD assistance amount not fixed publicly — varies per household income, geography, and fund availability.

Official source → growsd.force.com

Apply on official siteUpdated Dec 1, 2025

Recommended Resource

First-Time Homebuyer Starter Pack (2025 Edition)

A complete first-time homebuyer toolkit: 9 checklists, timelines, grant guidance, worksheets + editable Excel/Google Sheet budget & affordability calculator.

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Your Complete Guide to Becoming a First-time Homebuyer

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SD Housing’s First-Time Homebuyer guide walks new buyers through eligibility rules, income and purchase price limits, and next steps to access low-interest mortgages and down payment assistance in South Dakota.

Funding: Statewide low-interest mortgage and downpayment/closing cost assistance via SD Housings first-time and repeat buyer programs.StatewideIndividualDown payment assistanceClosing cost assistanceAffordable mortgage

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