Program Details

Homebuyers may receive a down payment of up to $6,000 toward the purchase of their new home. The funds are provided as an interest-free, 3-year forgivable second mortgage. No payments are required on the second mortgage unless the home is sold, no longer used as the buyer’s primary residence, transferred, or refinanced before the 36th month of ownership.
Property Requirements
  • Single-family detached residential homes, with a purchase price of $300,000 or less.
  • New or existing single-family residence, condo, or townhome within an area zoned as R1, R1c, R2, or R3, or described with a land-use of AG, and not in an industrial-zoned area.
  • The home must be on a permanent foundation.
  • The property must be located in Codington County.

*Purchase price is before any other reductions in the price of the home, including a down payment from the purchaser or another entity.

Borrower Eligibility
  • Borrowers must be able to secure a pre-approved fixed-rate mortgage from one of the participating lenders.
  • Borrowers must occupy the home as their primary residence within 60 days of closing.
  • Borrowers cannot be current residents of Codington County or Watertown for more than 90 days prior to application.
  • Borrowers cannot be employed within Codington County for more than 90 days prior to application.
  • Borrowers must be able to prove secured employment within Codington County and provide a letter from the employer to that effect.
  • This is a down payment assistance program. Due to regulations surrounding mortgage lending, borrowers must not have already purchased and closed on a home.
  • The WDC has allocated a predetermined amount of dollars to this program. If funds run out before you close on your home, payment cannot be guaranteed.
How to Get Started



Contact a lender for details on applying for a mortgage loan and securing down payment assistance.




Approved Lenders

Below is a list of the Watertown Development Company investor financial institutions**. Qualified individuals or families should work with their mortgage lenders to determine the appropriate financing option.

  • First PREMIER Bank
  • Wells Fargo
  • Great Western Bank
  • Dacotah Bank
  • USDA Rural Development
  • First Bank & Trust
  • Reliabank
  • Dakotaland Federal Credit Union
  • Plains Commerce Bank
  • American Bank and Trust

*Other qualified lenders not listed may also be used
**Pending FHA/HUD approval.

Application Process

No separate application from the regular mortgage application is required for the program. If you are not already working with a lender, the borrower must contact Angie Yahne at 605-880-2804 to determine eligibility.

Review and Processing

Approved lenders take care of the loan processing and grant funding from the initial mortgage application to loan closing. Lenders will underwrite and are responsible for credit decisions of the loans in the program.

  • The second mortgage cannot be subordinated or assumed.
  • This down payment assistance program cannot be used in matters of refinancing.
  • Because of lending requirements and regulations, loan documents for this program must be presented to the purchaser to sign at the time of closing.

A home is purchased in October 2020, with a loan for $180,000 and a down payment assistance of $5,400 (3%). On November 1, 2023, the $5,400 second mortgage is forgiven in full.

Program Contact


Angie Yahne

Executive Assistant

p: 605-884-0340
c: 605-880-2804


Relocating can be an expensive and time intensive task. Watertown Development Company (WDC) worked directly with my lender to aid in me owning my first home. The process was seamless! Thanks WDC!
Erika Bluel, Director of Cardiology Service Line,
Prairie Lakes Healthcare System