The Loan Assistance Program (LAP) provides downpayment, closing cost assistance and gap financing in connection with a home purchase financed by a first mortgage loan through an approved South Dakota Housing Development Authority (SDHDA) Participating Lender.

 

     The interest rate for LAP Loans is 5.0%.  LAP Loans have level monthly payments and loan terms from 5 years to 10 years.  Loan amounts range from $2,000 to $10,000.

 

     In order to be qualified for a LAP Loan, you cannot have liquid assets in excess of $5,000 after your loan closing.

 

     You will be required to attend an approved Homebuyer Education  class.

 

     Payments for LAP Loans are included with your regular monthly house payment.

 

     Click here for a printable list of Downpayment Assistance Income and Purchase Price Limits. (.pdf format)