Deadline approaching for South Dakota Housing’s Grants for Grads program

SIOUX FALLS, S.D. (Dakota News Now) – The Grants for Grads program was launched last May, aiming to assist postsecondary graduates in purchasing their first home in South Dakota.

According to Devin Malmgren, Mortgage Banker at Plains Commerce Bank, if you’re a recent grad looking to buy a home, it’s important to get in under the quickly approaching deadline.

“So it’s a gift, so South Dakota Housing is giving you up to five percent of the loan amount for any graduate that’s graduated in the last five years. So, the graduates that are going to graduate in May could actually technically qualify for it, but the deadline is happening on May 30th. So what that means is you have to have a house under contract and an accepted offer on a house by May 30th just to qualify for the program,” said Malmgren.

Malmgren points out that the Grants for Grads Program takes some of the risks out of purchasing a home.

“I always look at it from a break-even perspective. It takes about two-and-a-half years on average to break even on a home in Sioux Falls after closing costs and realtor fees and such, and this will drop it down to a year, year-and-a-half. It really does mitigate a lot of the risks as long as you’re going to stay in that house for more than two years. There’s really no reason not to buy because you will essentially have a little bit of equity rollover, or if your life changes and you have to move,” said Malmgren.

Malmgren adds that this program is one of a kind.

“It’s the most powerful program that I’ve ever seen come out of South Dakota Housing and what it’s really going to do is it’s going to set up these first-time home buyers for the future. If they stay in that house for three to five years, the amount of equity that they’re going to rollover is going to be substantially more because of using Grants for Grads than if they didn’t, if they just used the regular down payment assistance program. So, anyone that’s considering buying a house that has graduated in the last five years, I would highly recommend jumping on this program because nobody knows when or if we’re ever going to have it again,” said Malmgren.

Learn more about the Grants for Grads Program here.

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