SIOUX FALLS, S.D. (Dakota News Now) -A new program on several South Dakota Reservations is providing keys to financial stability to residents. Beth Warden shows us how local mortgage lenders with deep ties to the community are making a difference.
For those who live on the Pine Ridge, Cheyenne River, or Standing Rock Reservations, a new pilot program to help transition to homeownership is such a success USDA Rural Development is adding more funding to impact even more families.
“What we know is homeownership among Native American communities is lower. And at the same time, that is a way of getting families out of poverty,” says Nikki Gronli of USDA Rural Development.
In 2018, a new development began building a bridge to mortgage availability on reservations.
Congress gave permission for South Dakota to do this pilot program and to lend to Four Bands of Eagle Butte and Mazaska of Pine Ridge,” says Gronli.
The program is a growing success story, with 20 homes being financed. Now, it will offer even more.
“Four million dollars between the two organizations to help get 50 more Native American families into homes,” says Gronli.
The mortgages can match the needs and budget of the family.
“It can be existing homes. It can be new builds. To build trust, they need to work with a local financial institution,” says Gronli.
And that’s where April Anderson from Four Bands community Funds can help.
“And have a one-on-one conversation to help get through the application process,” said Anderson.
The journey includes credit counseling, if needed, to establish a good rating and qualify for a mortgage.
Anderson says those getting a mortgage usually come from living with family or possibly renting.
Those facilitating the program as local lenders or with the USDA Rural Development office find the process gratifying.
“It’s just so exciting to know you’re going to impact that many families right here in South Dakota,” says Gronli.
“It’s theirs. It’s their keys. It’s their living room, every part of their home is just like that beautiful story that he’s finally like becoming that success story like they’ve imagined for the two-year journey that they were on, so being able to make their dreams come true,” said Anderson.
The relationship between the lender and homeowner continues after the sale, and that relationship is working. Every homeowner is current on their mortgage payments, and there have never been loan defaults.
“Back in 2018, USDA lent $1.6 million to Four Bands Community Fund and Mazaska Owecaso Otipi Financial. Both NCDFIs have deep ties to the local communities. Mazaska Owecaso Otipi Financial is located on the Pine Ridge Reservation in South Dakota. It creates homeownership opportunities for the members of the Oglala Sioux Tribe. Four Bands Community Fund, headquartered in Eagle Butte, S.D., on the Cheyenne River Reservation, provides home mortgages and other financial products to businesses in South Dakota and North Dakota. Part of its service area includes the Standing Rock Reservation in North Dakota.” The program was so successful, another four million dollars is being added to the program,” a USDA statement describes.
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