Updated 12/17/14 @ 9:30 a.m.
*This is not an advertisement for credit as defined in Regulation Z; contact a participating SDHDA lender for Annual Percentage Rate ("APR") information. Interest Rates are subject to change without prior notice.
Terms you should know when considering SDHDA's Interest Rates:
Government versus Conventional
Interest rates are usually quoted in terms of "Government" or "Conventional." "Government" type loans are those that are either insured or guaranteed by an entity of the federal government where as "Conventional" type loans either have private mortgage insurance (PMI) or with a 20% downpayment are not insured at all. The insurance or guarantee protects the mortgage holder against loss due to non-payment or foreclosure of your loan. There is a cost to you and your Participating Lender that will explain each type and help you choose which one is best for you.
Fixed Rate Plus
The "Fixed Rate Plus" rate option provides downpayment and closing cost assistance (3% of the loan amount as a gift at the loan closing). This gift is never repaid! It does require a slightly higher interest rate.
Tax Credit (MCC)
"Tax Credit" refers to the interest rate option that allows you, through a Mortgage Credit Certificate (MCC), to convert some of your mortgage interest into a tax credit each year. This "Tax Credit" is a dollar-for-dollar reduction in your tax bill and the remaining interest paid is still eligible for the home mortgage interest deduction.
SDHDA's interest rates are subject to change anytime and generally rates are locked (Reversed/Committed) at the end of the processing period prior to loan closing.