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Down Payment Assistance in Sioux Falls & South Dakota
You may need much less saved than you think. Here are the programs that can help you buy in Sioux Falls, explained in plain language.
"First-time buyer" usually means you have not owned a home in the past three years, so even past owners may qualify. Most programs have income and price limits, and rules change, so always confirm the current details with a lender before you count on them.
Down payment help programs
Give Me Five
South Dakota Housing's newest program, started November 2, 2026. Eligible first-time buyers can get down payment help equal to 5% of their mortgage.
- No monthly payments
- Forgiven after five years if you stay in the home and follow program rules
- Homes up to $410,000; income limits apply (about $103,400 to $144,760 depending on county and household size)
- Temporary: up to 2,500 loans statewide, so do not wait
SD Housing First-Time Homebuyer Program
Low, fixed-rate loans through participating local lenders, with optional down payment and closing cost help (commonly 3% or 5% of the loan, as a 0% interest loan).
- Works with FHA, Conventional, VA, and USDA loans
- Purchase price and income limits apply
- A Mortgage Credit Certificate (MCC) may lower your federal income tax
SD Housing Repeat Homebuyer Program
Already owned a home? This program offers competitive rates, flexible down payment options, possible down payment help, and reduced mortgage insurance for qualified buyers.
GROW South Dakota
A nonprofit that offers zero-interest, deferred loans for down payment and closing costs to income-qualified buyers across South Dakota. Funds are limited and come in rounds.
City of Sioux Falls: Public Safety
For full-time certified police officers and firefighters. Up to $20,000 or 20% of the price (whichever is less) for homes in certain Sioux Falls neighborhoods, up to $385,000. Apply at least four weeks before closing.
Low and no down payment loans
VA loan
$0 down for eligible veterans, service members, and some surviving spouses. No monthly mortgage insurance. Read my VA guide →
USDA loan
$0 down for homes in eligible rural areas. Some towns around Sioux Falls may qualify; income limits apply. Check any address on the USDA eligibility map.
FHA
As little as 3.5% down with more flexible credit guidelines. Can be combined with down payment assistance.
Conventional
As little as 3% down for qualified first-time buyers. Mortgage insurance can be removed once you reach 20% equity.
How to get started
- Talk to a lender who works with South Dakota Housing programs. They check which programs you qualify for.
- Get pre-approved with the assistance built in, so you know your real price range.
- Take a homebuyer education class if your program requires it (Sioux Empire Housing Partnership offers one locally).
- Shop for homes under the program limits with me, then we write a strong offer.
Sources: South Dakota Housing (sdhousing.org); GROW South Dakota (growsd.org); City of Sioux Falls Public Safety Down Payment Assistance (siouxfalls.gov); VA.gov; USDA Rural Development. Updated November 2026. Program details can change at any time; this is general information, not a loan offer.
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