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Down Payment Closing Costs Assistance FAQs

How do I apply for Down Payment Closing Cost Assistance?

GROW South Dakota (GROW SD) has an online portal to start the process https://growsd.force.com/growsdcft  

Click here for a step by step guide to begin the application process. 


How much Down Payment Closing Costs Assistance am I eligible for from GROW SD?

There are a number of factors that are affected by the amount you may qualify for – such as are you purchasing in a Rural or Urban area, what is your household income and what funds GROW SD currently has available.

Each funding source has various limitations and requirements.  The majority of funding ranges from $5,000 - $7,500. These funds are provided as a 0% interest, deferred payment mortgage loan that generally follow the first Lender Mortgage Lender Term.  Payment is required whenever any one of the following conditions occurs:

  • Property is refinanced,
  • Property is sold or exchange of residence takes place,
  • Property ceases to be the principle residence of the homeowner,
  • First mortgage and note reach maturity date or note is paid in full, whichever comes first.

What other requirements are there for me to qualify for a GROW SD DPCC Loan?

  • You must have secured financing from a GROW SD approved First Mortgage Lender (https://www.growsd.org/housing).
  • The terms of the loan must meet certain criteria, such as no adjustable rate mortgages, terms cannot exceed 30 years (exception only for USDA RD loans). 
  • You must have a fully executed purchase agreement in place.
  • You must meet the specific DPCC income eligibility requirements (generally 80% AMI for the county of purchase). Some programs may vary.
  • You must complete an approved Homebuyer Education Course by an eligible organization.  Check with GROW SD first before beginning your class to ensure the appropriate class is being completed based on DPCC funding source requirements. (HUD Approved Course/ duration of the course and/or the provider is approved)
  •  Specific funding sources may have additional requirements, such as purchase price limit, etc.
  • After receiving your full request and application as required by GROW SD, we will work with you and your 1st Mortgage Lender to obtain any documents necessary to verify your eligibility for any of our DPCC programs. Based on this information, we will consider which options are available, if any, regarding your request. 
    • Necessary documents based on all household members, will include but not be limited to proof of income, identification, verification of assets, copy of the fully executed purchase agreement, divorce decree, etc.

How long does it take to be approved for a DPCC?

Once Grow SD has received all information to make an eligibility determination, we will respond within 3 days from receiving all the information. 

After making that determination, Grow South Dakota will need at a minimum 14 calendar days to provide funding for closing.


Can I subordinate my DPCC loan?

There are certain criteria that need to be determined for the subordination.  GROW SD will not subordinate for cash out refinances. 


What information is required to request a Subordination from GROW South Dakota?

Required doc’s needed from lender:

  • Name & Address of Borrower
  • Reason for Refinance (only rate/term refinances will be considered.  No cash out
  • Title Commitment
  • Lender 1008
  • Lender CD
  • HOI Binder listing GROW SD and 2nd mortgagee
  • Name, phone and address of closing agent
  • Closing Date
  • Preparation fee $50.00 – Payable to “NESDCAP”

Require a 7-day notice from closing date to prepare the Subordination.

Email request and documents to brenda@growsd.org

Fast Fact Image

The GROW South Dakota Organizations Have had a Remarkable Few Years!

Grow South Dakota deployed 172 down payment and closing cost loans for a total of $1.17 million, paired with $25.2 million in partner first mortgages.

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GROW South Dakota

GROW South Dakota
104 Ash Street East | Sisseton, SD  57262
Phone (605) 698-7654 | Fax (605) 698-3038 info@growsd.org