Grants for Grads Frequently Asked Questions

Frequently Asked Questions

Do I have to be a first-time homebuyer to participate in the Grants for Grads program?

Yes, you need to be a first-time homebuyer which means you have not owned a principal residence in the last three years.

Does my degree have to be from a postsecondary institution in South Dakota?

No, graduates may earn their degree from any accredited postsecondary educational facility recognized by the U.S. Department of Education.

What types of degrees are eligible?

You must have graduated within the last 60 months with a license, certificate, associate degree, bachelor’s degree, master’s degree or a doctoral degree awarded from a career or technical school, community college, junior college, four-year college or university recognized by the U.S. Department of Education.

Can I combine my grant with other SDHDA products?

No, the Grants for Grads program is not allowed with the Fixed Rate Plus interest rate option or the Repeat Homebuyer Loan program.

Is Homebuyer Education required?

It depends upon your loan. Homebuyer education is recommended, but it is not required for FHA, VA and USDA Rural Development loans. Homebuyer Education is required with all conventional loans. Homebuyer education is available online or in person and is free. HERO homebuyer education partners can be found here.

What kind of documentation is needed in order to be eligible?

You must present your license, certificate, diploma or verification of graduation from your educational institution as evidence of your enrollment and degree.

Does the grant need to be paid back?

No, there is no requirement to repay the gift (grant).

Can I receive a gift from other sources and still be eligible?

Yes, gifts from your family members, other nonprofits, etc. are permitted you just cannot combine the Grants for Grads homeownership program with other SDHDA products.

Does having student loans affect my eligibility for the program?

No, having student debt does not disqualify you from the program although you will need to meet our underwriting criteria. A Participating Lender in your area will be able to help you better understand our underwriting guidelines.

Will my credit score affect my ability to qualify for this program?

Yes, the minimum credit score for this program is 620.