Today's Rates In South Dakota
Current South Dakota Mortgage Rates
Borrowers seeking to buy a home or refinance a mortgage have a lot of options when it comes to South Dakota home loans. There are conventional mortgages backed by Fannie Mae or Freddie Mac, FHA loans that are a top choice for South Dakota first-time home buyers, VA loans for veterans and military personnel, USDA loans for borrowers with limited incomes and nonconforming mortgages for borrowers with special needs.
Beyond that, your choices include fixed-rate vs. adjustable-rate mortgages; 30-, 20-, and 15-year loans; various configurations of hybrid loans that combined fixed and adjustable rates; and the question of how much of a down payment to make. Then there's also the matter of finding the right South Dakota lender who will give you the best combination of mortgage rate and terms.
So how to make those choices? Basically, you want a mortgage loan that 1) you can qualify for and 2) fits your budget while 3) minimizing loan-related costs.
An essential tool when shopping for a mortgage or planning to buy a home in South Dakota is a mortgage calculator. Different ones can help you plan your budget, compare loan offers, calculate the cost of different mortgages over time, figure what your total monthly payments will be, see how much faster you can pay off your loan by increasing your payments, figuring your total interest costs over the life of a loan and more. Click on the link at the bottom of this page for dozens of mortgage and financial calculators to perform these tasks and more.
Other links at the top and bottom of this page that will lead you to consumer articles about various aspects of getting a mortgage and buying a home, including refinancing, mortgage rates, government-backed loans, getting a mortgage with bad credit and more. Or use the search function to research specific topics.
Meanwhile, here's some general information about South Dakota loans for home buyers and those looking to refinance.
South Dakota housing loans
Home loans for South Dakota residents fall into several main types. These can be used for either home purchases or refinancing. Mortgage rates, associated fees, down payment and credit requirements, and eligibility standards vary among them, but each offers advantages for certain types of borrowers.
Also called conventional loans, these are your standard mortgage type that accounts for most U.S. home loans. Their name comes from the fact these loans must conform to certain guidelines for credit scores, down payments, maximum loan amount, mortgage rate pricing and similar factors. Loans that meet these standards are considered low risk, which helps keep their rates down and allows lenders to offer favorable terms to borrowers.
These loans will frequently have the best South Dakota mortgage rates, particularly for borrowers with good-to-excellent credit who can make a sizeable down payment. Borrowers with lower credit scores and smaller down payments may still be able to qualify, but should expect to pay higher rates.
These government-backed mortgages are one of the most popular loans for South Dakota first-time homebuyers. They allow lower credit scores than conforming mortgages do and accept down payments of as little as 3.5 percent, even from borrowers with so-so credit scores. South Dakota borrowers with lower scores and small down payments may also find they can get better mortgage rates with an FHA loan than they would on a conventional mortgage.
VA home loans give South Dakota veterans and current members of the military who qualify the option of a no-down payment mortgage at competitive rates and with no ongoing charges for mortgage insurance. However, borrowers who make no down payment will be charged a higher funding fee than those who put 5-10 percent down. VA loans are offered only through certain participating lenders.
Indian Home Loan Guarantee Program (HUD Section 184)
This is a government home loan program open to members of federally recognized Native American tribes. Homes purchased or refinanced under the program need not be on tribal lands; in South Dakota loans are allowed in any part of the state. These loans offer favorable terms and more flexible lending criteria than many other loans, and allow low down payment without the need for mortgage insurance. These are offered though a limited number of lenders, mostly smaller to midsize banks and mortgage companies.
USDA Rural Development Home Loans
Another government loan program, USDA Rural Development Home Loans in South Dakota are reserved for borrowers of limited means who currently lack adequate housing. These also provide the option of a no-down payment loan with no monthly charges for mortgage insurance. These mortgages have limited availability and there is often a waiting list; to inquire, check with your closest USDA Rural Development Office.
This is a catch-all category that includes any mortgages that do not meet the criteria of the above loan programs. Sometimes that is because they exceed the lending limits for conforming mortgages, in which case they are known as jumbo loans. Others may be for borrowers whose credit is too poor credit to qualify for a conforming or FHA loan. Still others may be for borrowers who want loans that simply are not offered through the above lending programs, such as an interest-only mortgage with a balloon payment after a certain number of years or some other "exotic" loan.
These loans are a mixed bag as far as lending criteria and terms go, as each lender sets their own terms. Overall, you can expect to pay higher rate than on the loan types listed above, often significantly more, though credit and down payment requirements can be flexible. These types of loans are usually offered by small to mid-sized lenders, often specialty ones.