USDA Offers Home Loans with 100% Financing in Rural South Dakota Communities

Contact: Tammi Schone
(605) 352-1102

Applicants Encouraged to Contact USDA Rural Development Staff before September 1

The U.S. Dept. of Agriculture (USDA) Rural Development is currently accepting loan applications from low-income families to purchase or repair homes in rural South Dakota communities.

Recent changes to USDA Rural Development’s housing programs mean more rural South Dakotans can now achieve their homeownership goals.

Earlier this year the maximum mortgage limit for a USDA Rural Development direct home loan increased to $220,532, a jump of nearly $3,700 from the previous mortgage limit.

Also, a typical income limit for a one-person household using the USDA direct home loan program to purchase a home in an eligible rural South Dakota community or area is now $35,300. For a family of four a common limit is $50,400.

Income limits vary by county and household size, so applicants are encouraged to contact South Dakota USDA Rural Development staff for limits in their specific area.

The loans provide 100 percent financing, require no down payment or private mortgage insurance, no points, and no origination fees. The loans have a fixed interest rate for a term of 33 or 38 years.  Low-income applicants may qualify for subsidized payments and effective interest rate as low as 1.0 percent.  Loan funds may also be used to assist current eligible homeowners with repairs at reasonable rates and terms.

Applicants must have an acceptable credit history, meet income guidelines, have repayment ability to service the new loan and any existing obligations, be a United States citizen or legally admitted for permanent residence, and own and personally occupy the home on a permanent basis.

To learn more, contact Single Family Housing Director Janell Telin at the USDA Rural Development Aberdeen Office at (605) 824-3622 or visit

Last Modified: 07/20/2017