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First-Time Home Buyer Programs in Sioux Falls: New 5% Down Payment Help (2026)

A bright, high-resolution exterior shot of a well-maintained single-family home typical of Sioux Falls and surrounding South Dakota communities, with clean vinyl siding, a three-stall garage, and a neatly edged lawn. A freshly poured concrete driveway leads toward the foreground, flanked by simple landscaping with river rock and low shrubs. Captured during golden hour, warm sunlight bathes the front façade, emphasizing textures in the siding and shingles while casting long, soft shadows across the yard. The sky is clear with a gentle gradient from pale blue to warm orange near the horizon. Framed from a slightly elevated angle with photographic realism and crisp detail, the mood is optimistic and welcoming, perfectly suited for a featured property listing hero image.

If you’re buying your first home in Sioux Falls, the biggest news for 2026 is South Dakota Housing’s new “Give Me Five” program, which gives qualifying first-time buyers 5% of their mortgage amount toward the down payment as a loan that’s fully forgiven after five years. It launches November 2, 2026, stacks on top of South Dakota Housing’s existing first-time buyer loans, and covers homes priced up to $410,000 — which is most of the Sioux Falls market.

Quick Answer: First-time buyers in Sioux Falls have real help available. South Dakota Housing’s new “Give Me Five” program (launching November 2, 2026) provides 5% of your first mortgage amount as down payment assistance — structured as a five-year forgivable loan with no monthly payment. You must be a first-time buyer (no home owned in the past three years), buy a primary residence priced at $410,000 or less, and meet income limits. It pairs with South Dakota Housing’s competitive 30-year fixed-rate loans and other down payment options.

The headline: South Dakota’s new “Give Me Five” program

This is the question I’m getting most from first-time buyers in the Sioux Falls area right now, and the timing is good. On October 13, 2026, South Dakota Housing announced “Give Me Five,” a new down payment assistance program that launches November 2, 2026. (Want just this program in depth? I break it down in my guide to South Dakota’s Give Me 5 down payment program.)

Here’s how it works, straight from South Dakota Housing:

  • What you get: assistance equal to 5% of your first mortgage amount, put toward your down payment.
  • How it’s structured: a second mortgage that’s a five-year forgivable loan — no monthly payment, and it’s forgiven completely after five years, as long as the home stays your primary residence and you meet the program rules.
  • Who qualifies: first-time buyers (defined as not having owned a home in the past three years) buying a primary residence in South Dakota.
  • Price limit: the home must be $410,000 or less.
  • Income limits: you’ll need to fall under South Dakota Housing’s income limits, which vary by household size and county.

On a typical Sioux Falls purchase, 5% is real money. If your first mortgage is around $340,000, that’s roughly $17,000 toward your down payment that you don’t have to bring from savings — and don’t have to pay back if you stay five years. South Dakota Housing has said it’s offering this for a limited time, so if you’re close to ready, this is worth moving on.

The programs that were already here

“Give Me Five” is new, but it sits on top of South Dakota Housing’s First-Time Homebuyer program, which has been helping buyers across Minnehaha and Lincoln County for years. The core program offers a competitive 30-year fixed-rate mortgage, and you choose how you want help:

  • Fixed Rate Plus 3%: assistance equal to 3% of the loan amount for down payment and closing costs, as a 0% second mortgage due when you sell or refinance.
  • Fixed Rate Plus 5%: the same idea at 5% of the loan amount.
  • Fixed-Rate Buy Down: pay a 1% discount point at closing to lower your interest rate.
  • Standard Fixed-Rate: South Dakota Housing’s most competitive rate with no added assistance, if you already have your down payment.

A quick note on the difference that matters: the existing “Plus 3%” and “Plus 5%” options are second mortgages you pay back when you sell or refinance, while the new “Give Me Five” assistance is forgiven after five years. Which combination makes sense depends on your rate, your cash on hand, and how long you plan to stay — that’s exactly the kind of thing a South Dakota Housing participating lender can model for you.

Do you qualify?

For South Dakota Housing’s first-time buyer help, including “Give Me Five,” the main boxes to check are:

  • First-time buyer status: you haven’t owned a home in the past three years. (A home that was never on a permanent foundation, like some mobile homes, doesn’t count against you, and veterans may qualify for a waiver — ask your lender.)
  • Primary residence: the home has to be the one you live in, not an investment property.
  • Purchase price at or below $410,000. For context, the Sioux Falls median sale price was $344,600 in September 2026, so most homes in town fall under the cap.
  • Income within the limits. South Dakota Housing sets income and purchase price limits that change by household size and county — check the current numbers for Minnehaha or Lincoln County with your lender.
  • Homebuyer education: South Dakota Housing generally asks buyers using its assistance to complete a homebuyer education course. It’s quick, and honestly it’s useful your first time through.

You don’t apply through a government office — you apply through a participating lender, who pulls these programs into your regular mortgage pre-approval. If you want, I can point you to lenders in the Sioux Falls area who work with South Dakota Housing all the time.

What this means for your budget

Down payment help is powerful, but it’s only half the picture. Your monthly payment still has to fit your life, and there are closing costs beyond the down payment to plan for. Before you fall in love with a listing, it’s worth knowing your real all-in numbers — I walk every first-time buyer through this before we start touring.

Two companion reads that pair well with this: the hidden costs of buying a house in Sioux Falls (the fees beyond the down payment), and a realistic look at the monthly payment on a $350,000 home here. If you’re still deciding what type of home fits, the breakdown of condos vs. townhomes vs. single-family homes in Sioux Falls is a good starting point.

Frequently Asked Questions

What is the “Give Me Five” program in South Dakota?

It’s a down payment assistance program from South Dakota Housing that launches November 2, 2026. It provides first-time buyers with 5% of their first mortgage amount toward the down payment, structured as a second mortgage that’s forgiven after five years of living in the home as your primary residence — with no monthly payment in the meantime.

Who counts as a first-time home buyer in South Dakota?

For South Dakota Housing’s programs, a first-time buyer is someone who hasn’t owned a home in the past three years. You don’t have to have literally never owned one. Veterans may qualify for a waiver of the first-time requirement — ask a participating lender.

How much do I need for a down payment in Sioux Falls?

Less than most people think. With South Dakota Housing’s assistance options — and especially the new “Give Me Five” program covering 5% — many first-time buyers can get in with very little out of pocket. Loan types like FHA and conventional allow low down payments, and the assistance programs help cover what’s left. Your exact number depends on your loan type and price.

Is there an income limit for South Dakota first-time buyer programs?

Yes. South Dakota Housing sets income limits that vary by household size and county, and the home’s purchase price must be $410,000 or less. The limits change periodically, so confirm the current Minnehaha or Lincoln County figures with your lender before you assume you’re over or under.

Do I have to pay back down payment assistance?

It depends on the program. The new “Give Me Five” assistance is forgiven after five years in the home, so most buyers won’t pay it back. South Dakota Housing’s older “Plus 3%” and “Plus 5%” options are second mortgages that come due when you sell or refinance. A participating lender can show you which structure costs you less over your time in the home.

The bottom line

Sioux Falls is one of the more attainable markets in the region for a first home, and 2026 added a genuinely strong tool with South Dakota Housing’s “Give Me Five” program. Between a 5% forgivable down payment, competitive fixed rates, and a $410,000 price cap that covers most of the market, the path to your first home is more open than a lot of buyers realize.

If you’re thinking about buying your first home in the next year, the smartest first move is to map out your numbers and get matched with a lender who runs these programs every day. I’m happy to help you do both. Start with my free Sioux Falls Buyers Guide, then reach out anytime and we’ll build a plan around your situation.

About Tyce Ortman

Tyce Ortman is a residential real estate agent with the Jeff Merrill Team at eXp Realty, serving Sioux Falls, South Dakota and surrounding communities including Brandon, Harrisburg, and Tea. He works with both buyers and sellers, guiding them from first search or listing all the way through closing. Reach Tyce at (605) 413-7903 or through thesiouxfallsguide.com.

Sources

This article is general information, not lending, legal, or financial advice. Program terms, income limits, and purchase price limits are set by South Dakota Housing and can change — verify current details with a participating lender before making decisions. Tyce Ortman and the Jeff Merrill Team at eXp Realty support equal housing opportunity.

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