Homeownership

Interest Rates

Government
(FHA, VA and USDA Rural Development)
Government
(FHA, VA and USDA Rural Development)
Conventional
(PMI Insured and Uninsured)
Conventional
(PMI Insured and Uninsured)

SDHDA TAX CREDIT (MCC) **
OR
REPEAT HOMEBUYER
SDHDA TAX CREDIT (MCC) **
OR
REPEAT HOMEBUYER
Fixed Rate
N/A
N/A

3.375%

1% Discount Point

3.750%

1% Discount Point
Fixed Rate

3.125%

3.500%

3.750%

4.125%

Fixed Rate Plus LOAN *

3.375%

3.625%

4.000%

4.250%



*The Fixed Rate Plus Loan includes downpayment and closing costs assistance as a second mortgage at 0% with no payments equal to 3% of the first mortgage loan amount.

**The SDHDA Tax Credit (MCC) includes a $250 Tax Credit Fee


All rates include 1% Origination Fee


Updated 9/18/19 @ 9:00 a.m.

*Interest Rates are subject to change without prior notice.

Advertised rates are for a 30-year fixed rate mortgage.

This is not a commitment to lend. SDHDA does not lend money directly to consumers. We use approved Participating Lenders to qualify consumers and make all mortgage loans. Homebuyers interested in applying for financing should contact one of our Participating Lenders. This is not an advertisement for credit as defined in Regulation Z; contact a Participating SDHDA Lender for Annual Percentage Rate ("APR") information.

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 Loan

The Fixed Rate Plus Loan provides downpayment and closing cost assistance (3% percent of the first mortgage loan but will include a second mortgage at 0% interest rate, due-on-sale or satisfaction, no payments and no additional fees).

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.

Locking-In

SDHDA's interest rates are subject to change anytime and generally rates are locked (Reserved/Committed) at the end of the processing period prior to loan closing