PIERRE, S.D. (KELO AM) – For the first time since 2009, the Governor has approved a large issuance of mortgage bonds from the South Dakota Housing Development Authority (SDHDA) to be used to finance loans for first time homebuyers.
“The increase of demand in our housing market is an indication that South Dakota’s economy is recovering,” said Gov. Dennis Daugaard. “As more are buying homes for the first time or considering homeownership, South Dakotans seem to have a renewed sense of optimism.”
The SDHDA has been purchasing single-family loans since 1973, but has not had a large bond issue without federal subsidies since the recession in 2009. The bonds going to the First-Time Homebuyer Program total $67 million and will fund home loans for approximately 600 low- to moderate-income South Dakotans.
According to the SDHDA, the increased demand for homes this year has been substantial. Through April of 2013, the number of first time homebuyer loans increased by 95 percent in comparison to 2012, and by 23 percent in comparison to 2011, the last year of the $8,000 federal tax credit for homebuyers funded with federal stimulus dollars.