Lending Made Possible Through GROW South Dakota: Making Home Ownership Dreams Come True

GROW South Dakota’s housing programs support individuals and families in making their dreams of homeownership come true with direct financing for the purchase of a home, and down payment and closing cost assistance funds for income eligible applicants. GROW South Dakota is a HUD-approved counseling agency & Housing Education Resource Organization (HERO), offering individual and online education for current and prospective homeowners. 

Eligibility criteria and types of financial assistance

GROW South Dakota offers two types of financing. The Direct 1st Mortgage Financing program is available to potential borrowers who meet program eligibility, have acceptable credit, repayment ability and meet other underwriting and risk rating criteria.  The maximum loan amount that can be considered is $300,000. The Down Payment Closing Cost program  is subject to eligibility guidelines per funding source. Guidelines include income, purchase price, county limits and household size.  Most of the funding available may have income limitations ranging from below 80% Area Median Income (AMI), to a maximum of 115%  AMI.

Interest rates of the program

GROW South Dakota’s direct loans charge a 4.50% fixed rate on a 10-year balloon with up to a 30-year amortization period. The rates and terms are based on the type of capital that GROW SD has available.  Loans are provided to a variety of  borrowers, with unique needs that may or may not fit conventional financing. GROW South Dakota has a 99% repayment rate, which is a reflection of the commitment from our borrowers to be successful homeowners.  

An easy and hassle-free application process

All applications start with the borrower(s) completing an online profile through our website: www.growsd.org. The process is similar for down payment/closing cost assistance, homebuyer education, or direct loan applications. Borrowers apply through the online portal and provide all the information needed.  If approved for financing,  information is obtained from various sources, including the borrower, in order to close the loan.  

To date, over 1,200 down payment/closing cost assistance loans have been closed, with a total project cost amounting to over $170 million. 

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

Once GROW South Dakota has received all information to make an eligibility determination, they respond within three working days. From that commitment, a minimum of 14 calendar days are needed to provide funding for closing. Brenda Waage, a loan officer with GROW South Dakota says that customers are very happy with the turnaround time and the efficiency of service. She talks about a borrower, who, after obtaining her first job upon college graduation, moved to a new community in South Dakota.  After a year of renting, her mother, an experienced mortgage lender, recommended she purchase a home and apply for GROW South Dakota’s down payment/closing cost assistance funds. She was more than happy with the process and commented, “I love having a place to call home and like the idea of having my own space. It is also empowering to know and give myself the responsibility of caring for the home and its upkeep. It is always nice to have family come and visit, with space for them to stay. I'm able to host gatherings with friends and family.” 

For the housing lending staff at GROW South Dakota, her happiness is just one more important homeownership dream come true. Do you wish to own a house? Are you in the process of applying for financial assistance? We’d love to help! Contact us for more information at 605-698-7654 or info@growsd.org.