South Dakota Grants There are many grants available in this State to assist a home buyer purchase a home. By using these grants it makes it possible to purchase a home with little or no money down.  Below is a list of some of the grants available, as well as contact information for each. Some are State sponsored grants. Some are sponsored on the county or municipality level.  Understand that many of these grants have limited funding, and most have income restrictions, so it is important to work with your mortgage lender and the non profit administering the grant program to ensure availability of funds.  State Sponsored Bank Sponsored Matching Funds Programs Community/local Sponsored Grants Seller Funded Down Payment Assistance Programs State Sponsored  The State of South Dakota offers a second mortgage of $5000 to assist you with your down payment and closing costs. It has to be paid back and the payments are included with your first mortgage payments. Below is a link to the State’s web site:  http://www.sdhda.org/content.asp?secId=237&ParentId=234  Bank Sponsored Matching Funds Programs  Banks that are members of the Federal Home Loan Banking system also offer IDA savings accounts. Visit the Regional Federal Home Loan Bank web site for more information. Community/local Sponsored Grants Multi-County Neighborhood Housing Services of Black Hills Down Payment and Closing Costs Assistance Program (DAP)  (605) 578-1401  Multi-County Neighborhood Housing Services of Black Hills Loan Criteria Program  (605) 578-1401  South Dakota Teton Coalition Incorporated Affordable Housing Program (AHP)  (605) 341-9939  Seller Funded Down Payment Assistance Programs There are several non profit organizations that allow a seller to “donate” funds to them at closing, which is then given to the buyer as a down payment assistance grant. Presently, the federal government is reviewing these programs to determine whether this practice is an acceptable lending practice. By using one of these programs it is possible to purchase a home with little or no money. The seller needs to be a motivated seller, and the home needs to be priced correctly. Usually the sales price is inflated to cover the “donation”. The home must be able to appraise at the inflated price. These programs are initiated by the lender, so it is important to work with a local lender before you start looking for a home. The lender will also know how present legislation is affecting the program. The two most commonly used programs are The American Dream DAP and The Nehemiah DAP. Below are links to their web site. American Dream:  http://www.americandreamdownpaymentassistance.com/dpa_app.cfm Nehemiah Corp:    http://www.nehemiahcorp.org/