SDHDA offers Three Rate Options

Step Rate

 The interest rate starts at a predetermined affordable rate and increases one-half of one percent per year for the first four years and then becomes fixed at the beginning of the fifth year, where it stays for the remaining 26 years of the loan.

Fixed Rate

The interest rate is fixed for 30 years.

Fixed Rate Plus

This is the newest rate option offered by SDHDA. The interest rate is fixed for 30 years and it provides a 3% gift for downpayment and closing costs.