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.  Loans are available for the purchase of an existing home, construction of a new home, purchase of a manufactured home from an approved dealer or contractor, or purchase and set up of a Governor’s Home.

Through the 502 Partnership Program, USDA Rural Development provides financing for 80% of the cost of a home and the South Eastern Development Foundation provides the remaining 20%.  No down payment is required for borrowers that are eligible to participate in the program.

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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 Home Price

• $132,000 (Clay, Turner, and Union Counties)
• $153,100 (Lincoln, McCook, and Minnehaha Counties)
• May be used for new construction, existing home, or a Governor’s Home.

Income Limits

• 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 the home's costs) – Rate is 3% fixed for 15-years.

Terms

• Rural Development – 33 years
• SEDF – 30 year amortization with a 15-year balloon

Closing Costs

Borrower is responsible for title insurance, necessary inspections, survey costs, appraisal fees, all filing fees, and other miscellaneous fees as required (closing costs may be included as part of the loan).

SEDF charges a $500 loan origination fee, which can also be included as part of the loan.

Down Payment

No down-payment is required

Eligibility

Borrower does 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.

Contact

South Eastern Development Foundation
500 N. Western Avenue., Ste. 100
Sioux Falls, SD  57104
605-367-5390

Jamie Christiansen-Lehman
USDA Rural Development
2804 Benson Road
Sioux Falls, SD  57104
605-330-4515  Ext 4
For Lincoln, McCook, Minnehaha, and Turner Counties

Patti Eberling
USDA Rural Development
2914 Broadway
Yankton, SD  57078
605-665-2662  Ext 4
For Clay and Union Counties