Recent action by the SDHDA Board of Commissioners to lower the First-time Homebuyer Program interest rates produced a new record low.

The new rates, effective April 7, 2003, were lowered 20 basis points from the previous rate.

"We strive to offer South Dakota First-time Homebuyers the lowest rate possible," said John Rothstein, SDHDA Chairman of the Board.  "This is a great opportunity for first-time homebuyers or those who haven't owned a home in the last 3 years to purchase."

SDHDA's 30-year fixed rate was reduced to 4.75% and the new Step rate starts at 3.75% and increases one-half percent per year until it reaches 5.75% at the beginning of the fifth year, where it remains for the balance of the 30-year term.

Income limits and purchase price limits vary by county.  Refinancing existing mortgages is not permissible.  For more information, First-time Homebuyers should contact their local lender.

In March, SDHDA also announced that the federal income limits, which establish eligibility for SDHDA's First-time Homebuyer programs, have increased. These new limits became effective February 28, 2003.

The federally imposed homebuyer limits are based on 100 percent of median income for 1 and 2 member families, and 115 percent of median income for 3 or more member families.

For a complete listing of First-time Homebuyer Program income limits and purchase price limits, visit SDHDA's website at www.sdhda.org.