Mortgage in South Dakota
South Dakota is famous for Mount Rushmore, a popular tourist destination since its opening back in 1941. It's also a state with a vibrant economy, beautiful scenery, and a laid-back lifestyle. There's a good reason it ranked the 9th best state for overall wellbeing ! On top of that, housing costs in South Dakota are less than the national average, so you should find it a little easier to be a homeowner there. If you're thinking of buying a home or condo in South Dakota, try our South Dakota mortgage calculator to get a good sense of what you could pay per month.
South Dakota Mortgage Calculator: There Are Three Main Choices
Prospective homebuyers should know that there are three primary types of mortgages.
- South Dakota conventional mortgage: Given that South Dakota has below-average housing costs, many people buy a property that fits in a conforming loan (i.e., has a value less than about $550,000). For these conventional mortgages, banks require a minimum credit score of 620 and a minimum down payment of 3%. However, the more you have, the better your chances of approval are!
- South Dakota FHA mortgage: Both present and future South Dakotans can take advantage of FHA loans. These loans require as little as 3.5% down with a credit score equal to or above 580. If you have a credit score between 500 and 579, homeownership is still possible! You'll need 10% down, however, to get an FHA mortgage.
- South Dakota VA mortgage: Those serving or have served in the military have access to one of the best mortgage offerings. Backed by the VA, these loans require as little as 0% down and have no private mortgage insurance. They do, however, typically require a minimum credit score of 660.
The above choices are not the only options. If you're a first-time homebuyer, the state offers additional assistance.
First-Time Homebuyers in South Dakota
The South Dakota Housing Development Authority offers a few programs to help first-time homebuyers acquire their first property.
The First-Time Homebuyer Mortgage program provides low-interest fixed-rate loans.
Eligibility Criteria: Borrowers must meet income restrictions. The purchase price cannot be more than $275,000.
South Dakota's Down Payment Assistance program offers 3% to help with the costs of obtaining your mortgage. This loan is a forgivable, 0% interest rate second mortgage.
Eligibility Criteria: Borrowers must qualify for one of SDHDA's fixed-rate loan offerings.
The Governor's Home Program is unique to South Dakota. This program offers low-cost homes to those that meet the eligibility criteria. A 2-bedroom style home costs $50,200, while a 3-bedroom home costs $57,900. The goal of this program is to let lower-income families have a dwelling to call their own!
Eligibility Criteria: Borrowers must meet relatively strict income restrictions. The home must become their only residence. Finally, the program also has net worth restrictions.
South Dakota Mortgage Calculator: How Much Will a Home Cost You?
With the above information in mind, you can use our South Dakota mortgage calculator to see how much a home will cost you! With below-average living costs and an above-average job market, you'll likely find that a move to South Dakota will suit your pocketbook!