Pierre, SD – September 13, 2010 – (RealEstateRama) — While fall leaves are dropping, so are the interest rates for First-time Homebuyer Loans through South Dakota Housing Development Authority (SDHDA).
The interest rate for starting Step Rate loans is now 2.75 percent, Fixed Rate loans were reduced to 3.75 percent and the Fixed Rate Plus Option was reduced to 4.25 percent. The rates are the lowest in the history of SDHDA.
SDHDA was able to cut interest rates under new regulations in the Obama Administration’s New Issue Bond Program, which is designed to stabilize the housing market. The program allows State Housing Finance Agencies, such as SDHDA, to issue new mortgage revenue bonds that are backed by the U.S. Treasury Department to fund new mortgages.
With the mortgage revenue bonds that were sold through the New Issue Bond Program, SDHDA anticipates that 3,000 individuals or families will be provided opportunities to purchase their first homes and establish roots in South Dakota communities.
SDHDA’s Fixed Rate Plus option provides cash assistance for down payment and closing costs of up to 3 percent of loan amounts.
SDHDA’s Step Rate starts at 2.75 percent and increases one-half percent each year for four years. The rate beginning in the fifth year is 4.75 percent and remains at that level for the balance of the 30-year term.
Income limits and purchase price limits vary by county. Applicants must be first-time homebuyers to qualify.
For more information, First-time Homebuyers should contact one of SDHDA’s Participating Lenders. Interest rates, income limits, qualifications and list of participating lenders can be found on SDHDA ‘s website at www.sdhda.org. These rates are subject to one origination fee and one discount point.
South Dakota Housing Development Authority 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, disability, familial status or national origin. SDHDA is a proud partner of the State’s 2010 Initiative to “Brand and Develop South Dakota’s Quality of Life as the Best in America.” For more information, visit www.sdhda.org or www.2010initiative.com.
The South Dakota Housing Development Authority…Building a Better Quality of Life.