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Although
the calendar says winter, the weather is unseasonably warm, thereby
allowing construction to continue at breakneck speed. First-time
homebuyer commitments, typically down this time of year, have not
skipped a beat. The low interest rates continue to allow hundreds
of families to achieve homeownership each month.
The question is whether we are buying next year's cars and next
year's homes, but the reality remains that homeownership has never
been more achievable in South Dakota. SDHDA applicants in
most areas of the state can obtain "zero-percent down" home loan
financing, and SDHDA's MAP Program provides low-interest down-payment
and closing cost financing. With the Step Rate starting at
4.95%, what can possibly stop First-time Homebuyers?
In fact, there are two real factors that often prevent purchasing
that "home for my family." The first relates to excess credit
or poor credit history of the potential borrowers. South Dakota's
Homebuyer Education Resource Organization (H.E.R.O.) is working
toward greater access to and a continuum of Homebuyer Education
in South Dakota to address that issue.
The second factor is the restrictive Purchase Price Limits, established
by Congress for SDHDA's First-time Homebuyer program. Although
home values have increased significantly in South Dakota in recent
years, the limits we are currently forced to use have not changed
since 1994, and the majority of SD counties have a maximum $60,987
purchase price limit for existing homes. This is unfair to
South Dakota Homebuyers and needs to be changed.
Legislation has been proposed in Congress to increase those limits
relative to actual incomes, however it was not considered in Congress
by year end. We will again be providing information to South
Dakota's Congressional delegation, all of whom have co-sponsored
the pending bill, to help them identify a vehicle by which this
legislation can pass in 2002.
As I write this column, we are almost half way through another fiscal
year. The Annual Conference was a huge success----"the best
ever"---stated a long time participant. The Housing Plans
are in place, and we are preparing for the 2002 application and
construction season. It's been a good year. Here's hoping
that next year will be even better. Thank you, partners, and
Best Wishes for
a Happy and Healthy New Year.
Dar
Baum, Executive Director
SDHDA
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