For Immediate Release (March 24, 2005)
South Dakota Housing Development Authority
For More Information: Dar Baum - 773-3181
Headline: SDHDA’s $100 Million Bond Sale Secures 4.95% Mortgages
(Pierre) – The South Dakota Housing Development Authority’s $100 million bond sale to private investors earlier this month enables the agency to continue to offer 4.95% Fixed Rate, 30-year mortgages.
"With the recent bond sale, many more First-time Homebuyer families in South Dakota will have an opportunity to own their first home at this unbelievable rate," said Bob Sutton, Chairman of the SDHDA Board. “This unique organization in the State continues to provide interest rates below 4 and 5%, without using tax dollars.”
First-time Homebuyers can choose either the 4.95% Fixed Rate option or a 3.95% starting Step-Rate option. The Step rate increases annually by one-half percent through year five when it reaches 5.95% and remains at that rate throughout the rest of the 30-year term of the mortgage.
Conventional rates have ranged between 5.5% and 5.785% in recent months.
“Last fiscal year, SDHDA, with the participation of 59 lenders operating in over 200 main offices and branches throughout the State, provided loans for more than 2,400 South Dakota families and individuals,” said Dar Baum, SDHDA Executive Director.
The original "Single Family Homeownership Bonding Program" was implemented in 1974 to increase the supply of mortgage capital in the State and offer low and moderate-income households the opportunity of homeownership. Since then more than 60,000 loans totaling more than $3.2 billion have been made to qualifying homebuyers.
The Authority also provides down payment and closing cost loans ranging from $2,000 to $10,000 at interest rates from 3% to 5.5%, depending upon income and other eligibility requirements.
First-time homebuyers should contact their local participating lender for more information or visit www.sdhda.org.
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, handicapped, familial status or national origin.
