Owning your own home can be a reality.
WHAT DOES MY LENDER NEED WHEN I APPLY?
WHAT ARE THE TERMS OF A HOMEOWNERSHIP LOAN? The borrower may choose one of the following: FIXED RATE OPTION competitive 30 year fixed interest rate. FIXED RATE PLUS OPTION provides a 30 year fixed interest rate plus downpayment assistance. The
South Dakota Housing provides low interest rate loans to South Dakotans through the First-Time Homebuyer Program.
Whether you are being pre-qualified or actually applying for a homeownership loan, it is important to be prepared for the loan interview. The lender may require such things as a copy of the purchase agreement (if applicable), bank statements, pay stubs, tax returns, and creditor names and addresses. The exact requirements may vary from lender to lender, so you may want to ask what documentation is needed when you call for an appointment. WHAT IF I SELL MY HOME? The Federal Recapture Tax is an IRS tax that may increase the amount of tax the homeowner pays when selling the home. The tax amount will depend on the year in which the homeowner sells, the homeowner’s income that year, and the amount of gain, if any, received from the sale. If the home is sold more than nine years after the closing date, there will not be a recapture tax.
PO Box 1237 3060 E Elizabeth St Pierre, SD 57501
605-773-3181
assistance is provided through a second mortgage at 0% interest, due-on-sale or satisfaction.
605-773-5154
sdhousing.org
SD Housing generally does not charge a discount point (1% of loan amount). SD Housing also limits the number of fees that participating lenders can charge keeping the closing costs as minimal as possible. Be sure to have your participating lender outline all of the closing costs during your loan application. Unless the borrower makes a 20% downpayment, all loans must be insured or guaranteed by: • Federal Housing Administration • • USDA Rural Development • Private Mortgage Insurance Company Loans will be amortized over a term of 30 years. Some programs may allow a shorter term when requested by the borrower and approved by SD Housing.
advisors. If there are questions concerning
accountant or the IRS.
SD Housing stipulates that if you are required to pay a recapture
SEE IF YOU QUALIFY! Try out our simple First-Time
tax to the IRS, SD Housing will reimburse you for the actual amount of the recapture tax.
Homebuyer calculator to see if you might be an eligible homebuyer.
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