For Immediate Release (December 6, 2006)
South Dakota Housing Development Authority
For More Information: Mark Lauseng, 605-773-3181
SDHDA Announces Drop in Interest Rates for First-time Hombuyers
The South Dakota Housing Development Authority (SDHDA) announced today that their 30-year mortgage interest rates have lowered. The interest rate for starting Step Rate loans is now 4.125%, Fixed Rate was reduced to 5.125 and Fixed Rate Plus Option loan was lowered to 5.5%.
“At these lower rates, monthly payments on a $100,000 loan will be approximately $55 lower than a loan done at conventional rates,” says Mark Lauseng, Executive Director for the South Dakota Housing Development Authority. “Those lower loan payments will make the program available to more qualified first-time homebuyers.”
Conventional mortgage loan rates are ranging from 5.75%-6.25%.
SDHDA’s new Fixed Rate Plus Option of 5.5%, provides downpayment and closing cost cash assistance to homebuyers through a 3% gift towards their downpayment.
The Authority’s Step Loan rate of 4.125% increases one-half percent per year until it reaches 6.125% 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 mortgage is not permissible.
“New homeowners provide economic benefits to everyone in the community and create a stable family environment,” said Bob Sutton, Chairman of the SDHDA Board of Commissioners. “These low rates benefit more than just the homebuyers.”
For more information, First-time Homebuyers should contact their local lender.
SDHDA’s bond program provides an ongoing source of lower-rate mortgage financing. SDHDA is a self-supporting, quasi-public agency, which receives no state general funds. The Authority does not discriminate against any person because of race, color, creed, religion, sex, handicap, 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.
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