State Housing Agency Lowers First-time Homebuyer Program Mortgage Rate to Make Homeownership More Affordable

PIERRE, SD – May 13, 2009 – (RealEstateRama) — To continue making homeownership more affordable, the South Dakota Housing Development Authority (SDHDA) announced today that their 30-year mortgage interest rates have been lowered. The interest rate for starting Step Rate loans is now 3.50%. The 30-year Fixed Rate option was reduced to 4.50% and the Fixed Rate Plus Option, which includes 3% cash assistance, was lowered to 5.00%.

“These lower interest rates along with the IRS First-time Homebuyer tax credit of upto $8,000 makes homeownership very attractive” says Brent Adney, Director of Homeownership Programs for the South Dakota Housing Development Authority. “Now, more than ever, is a good time for First-time Homebuyers to look at buying their first home.”

Besides the 30-year Fixed Rate option, SDHDA has two other mortgage interest rate options homebuyers can choose. SDHDA’s newest interest rate option is called the Fixed Rate Plus and provides cash assistance for downpayment and closing cost of upto 3% of the loan amount. The other option is the Authority’s Step Rate which starts at 3.50% and increases one-half percent per year for 4 years. The rate beginning on the fifth year is 5.50% and remains at that rate for the balance of the 30-year term.

Income qualifications and purchase price limits also apply and vary by county and household size.

Interested First-time Homebuyers should contact any one of SDHDA’s Participating Lenders which are listed on their web site at www.sdhda.org. These rates are subject to one origination fee and one discount point.

###

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, 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.