SEDF Home Loans

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. 

Loan Uses

  • 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

Housing Brochure

Home Location

Available in Clay, Lincoln, McCook, Minnehaha, Turner, and Union Counties.  To qualify, homes must be located outside of the Sioux Falls city limits.

Maximum Loan Amount

  • $220,532 (Clay, Lincoln, McCook, Minnehaha, Turner and Union Counties)

  • May be used for new construction, existing home, or a Governor’s Home.

Income Limits

Income Limits

Interest Rate

  • 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

Closing Costs

Borrower responsible for the following costs, which may be included as part of the loan:

  • Title insurance

  • Any necessary inspections

  • Survey

  • Appraisal fees

  • Filing fees, and other miscellaneous fees as required

  • $500 loan origination fee to SEDF

Down Payment

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.