Finance Information

Virtually all residential financing options are available at Cheyenne Pass.

Homes built at Cheyenne Pass meet or exceed FHA, VA, Rural Development, SDHA, or conventional loan requirements.

Stop by our sales office any day of the week to see what might work best for you!

In many cases we have the ability to pay the buyer's closing costs. When combinded with 100% financing it may be possible to own a home with zero cash outlay.

SOME OF THE FINANCING OPTIONS AVAILABLE AT CHEYENNE PASS:

USDA RURAL DEVELOPMENT

The Guaranteed Loan Program is primarily used to help low income individuals or households purchase new homes in rural areas such as Cheyenne Pass. Applicants may obtain 100% financing to purchase newly constructed dwellings with minimal closing costs. Once approved, this loan is administered through a local financial institution.

The Direct Loan Program is directly funded by the Government.   These loans are available for low- and very low-income households to obtain homeownership.  Applicants may obtain 100% financing to purchase newly constructed dwellings located in rural areas such as Cheyenne Pass.  Mortgage payments are based on the household's adjusted income ranging from as little as 1% up to 5%.

If qualified, you could be living in a new home at Cheyenne Pass for as little as $600.00/Month P.I.T.I.


South Dakota Housing Development Authority:

The First-time Homebuyer Program provides below-market fixed interest rate mortgage loans and cash assistance for homebuyers purchasing a residence in the state of South Dakota. SDHDA can guarantee your loan that will then allow participating lenders to originate, process, and close the loan. This loan is only available through banks and credit unions.

FHA Loans: The most popular FHA home loan is the 203(b). This fixed-rate loan often works well for first time home buyers because it allows individuals to finance up to 97 percent of their home loan which helps to keep down payments and closing costs at a minimum. The 203(b) home loan is also the only loan in which 100 percent of the closing costs can be a gift from a relative, the seller, non-profit, or government agency such as South Dakota Housing Development Authority. This allows for the possibility to purchase a new home for zero out of pocket expense at Cheyenne Pass.

VA Loans: The main purpose of the VA home loan program is to help veterans finance the purchase of homes with favorable loan terms and at a rate of interest which is usually lower than the rate charged on other types of mortgage loans. For VA housing loan purposes, the term "veteran" includes certain members of the Selected Reserve, active duty service personnel and certain categories of spouses. VA Loans are available with zero down payment and in many cases the seller may pay the buyers closing costs with a net result of zero out of pocket cash to purchase a home.


The Tax Advantages Of Homeownership

Owning your own home can be a very rewarding experience — especially when tax time rolls around. Three tax items in particular — the mortgage interest deduction, the property tax deduction and the capital gains exclusion — can provide significant financial benefits to home owners when the time comes to settle up with Uncle Sam.  

Mortgage Interest Deduction: The interest you pay as part of your mortgage payment is deductible on your federal tax return and may also be on your state income tax return depending on where you live.

This deduction applies to first and second mortgages, up $1 million of mortgage debt. Your lender should provide you with one or more IRS Form 1098s, which will provide the amount you may claim on your tax return. To benefit from this deduction you must itemize your deductions using a Schedule A Form.

You may also deduct the interest on money you borrow against your home to finance housing or non housing-related expenses. An example is a home equity loan, which many home owners use to remodel their home, pay off credit card bills, buy a car, finance a vacation or pay for educational expenses.

Property Tax Deduction: State and local taxes paid on the assessed value of the home are also deductible on your federal return. Like the mortgage interest deduction, itemizing is necessary if you wish to deduct property tax payments.  

Notably, for many home owners the combined deductions for mortgage interest and property taxes exceed the standard deduction — currently between $5,700 and $11,400, depending on filing status. When this is the case, home owners are able to deduct or “write-off” many other items including charitable contributions, state income or sales taxes, medical and dental expenses, tax preparation fees and other miscellaneous allowable deductions, which collectively can reduce your federal and state income tax liabilities dramatically.   Research by economists at the National Association of Home Builders indicates that for the typical home owner, these savings can exceed $5,000 in the first year of homeownership.

Capital Gains Exclusion: Perhaps the biggest advantage to owning a home is the ability to avoid paying capital gains when it is sold. Under current law, married home owners filing jointly may exclude up to $500,000 of capital gains and single tax filers may exclude $250,000 from taxation. This exclusion applies only if you have lived in your primary residence for two years or more. But the exemption may be used repeatedly as long as the residency rules are met.

The tax benefits conferred on home owners by the federal government are substantial. Annual benefits, such as the mortgage interest deduction and the property tax deduction, along with the less frequently used benefit of the capital gains exclusion, make homeownership more tax advantageous than almost any other investment. Take advantage of it!

Be sure to consult your tax advisor about the deductions you may be eligible to claim.

To see the many more reasons homeownership benefits you, stop by Cheyenne Pass and visit with one of our New Home Specialists.

ON SITE SALES OFFICE OPEN DAILY

Located off Radar Hill Rd. 605-791-5005 605-390-6571 www.CheyennePass.com