The South Eastern Development Foundation (SEDF) partners with USDA Rural Development and its 502 Home Loan Partnership Program to provide home loans to low income families in southeastern South Dakota.
Purchase of an existing home
Construction of a new home
Purchase of a manufactured home from an approved dealer or contractor
Purchase and set up of a Governor’s Home
USDA Rural Development—Finances 80% of the cost of a home
South Eastern Development Foundation—Finances the remaining 20% of the cost of a home
Home Buyer—No down payment is required for borrowers that are eligible
Available in Clay, Lincoln, McCook, Minnehaha, Turner, and Union Counties. To qualify, homes must be located outside of the Sioux Falls city limits.
$220,532 (Clay, Lincoln, McCook, Minnehaha, Turner and Union Counties)
May be used for new construction, existing home, or a Governor’s Home.
USDA Rural Development’s Second Mortgage (up to 80% of home's cost) – As low as 1%, depending upon income.
SEDF’s First Mortgage (up to 20% of home's costs) – Rate is 3% fixed
USDA Rural Development – 33 years
SEDF – 30 year amortization with a 15-year balloon
Borrower responsible for the following costs, which may be included as part of the loan:
Any necessary inspections
Filing fees, and other miscellaneous fees as required
$500 loan origination fee to SEDF
No down-payment is required
Do not have to be a first-time homebuyer
Homebuyers must meet USDA program eligibility requirements
Please contact USDA Rural Development to become pre-qualified for a home loan.