Interest Rate
Average home price

If you’re planning on purchasing a home in South Dakota, you’ll want to make sure you are getting the best mortgage rate possible. Your mortgage rate will depend on a wide variety of factors, including your income, your credit score, the amount of your down payment, and your debt-to-income ratio.

Ways to improve your chances of getting an optimal mortgage rate in South Dakota include checking your credit before you apply for a home loan, making sure all of your documentation is in order, and getting preapproved by a reputable mortgage lender.

Here’s a quick look at current South Dakota mortgage rates:

Loan Program Mortgage Rate APR* 1 Day Change
Conventional 30 year fixed 6.469% 6.543% -0.12%
Conventional 20 year fixed 6.388% 6.49% Unchanged
Conventional 15 year fixed 5.969% 6.094% +0.02%
Conventional 5 year ARM 6.537% 7.645% -0.03%
FHA 15 year fixed 6.5% 7.2% Unchanged
FHA 30 year fixed 6.125% 6.859% Unchanged
VA 30 year fixed 5.946% 6.208% Unchanged
VA 15 year fixed 5.537% 5.945% Unchanged
VA 5 year ARM 6.156% 7.1% Unchanged

Data source: ©Zillow, Inc. Use is subject to the Terms of Use

Buying a Home in South Dakota

Thinking about buying a home in South Dakota? This could be a brilliant time to find your dream home in the Mount Rushmore State. Here’s what you need to know:

Start by figuring out where you want to live. South Dakota has a total population of just over 800,000, and of that population, more than a third live in the state’s most crowded cities (which exclude the state capital, Pierre):

  • Sioux Falls
  • Rapid City
  • Aberdeen
  • Brookings
  • Watertown

You’ll definitely need to know how much home you can afford. South Dakota ranks 34th in US homes for sale at average price, and 48th for homes over $1,000,000. Getting preapproved can help you discover what your true budget is before you go house hunting.

First-time Homebuyers

If you are a first-time home buyer, you may be able to qualify for assistance through a program administered by the South Dakota Housing Development Authority (SDHDA).

The SDHDA First-Time Homebuyer Program can include down payment assistance through the SDHDA Fixed Rate Plus option, which offers a second loan worth up to 3% of your first mortgage. This is provided as a zero-percent 30-year loan, so there are no additional interest or fees; you’ll just pay it off when you pay off your loan or after 30 years, whichever happens first.

Requirements for this program include:

  • Minimum credit score of 620
  • A gross household income that meets SDHDA requirements
  • Completion of a homebuyer education course

Refinancing in South Dakota

If you need to refinance a home in South Dakota to take advantage of favorable South Dakota mortgage rates, you can do any of the following:

  • Refinance to leverage a lower interest rate
  • Refinance to request a longer loan term
  • Refinance to access needed cash-out equity
  • Refinance to get away from a private mortgage insurance (PMI) mandate

You may want to ask about qualifying for a streamlined refinance, available on certain types of existing loans. Ask your lender for more information.


Buying a Home?

Each step-by-step guide is designed to shepherd you through a process from start to finish. Know what to expect and how to proceed, no matter where you are in your home buying journey.

1 The First Step in Buying a Home – Preapproval

What Is a Mortgage Preapproval? | How Much Will My Monthly Payment Be? | How Much Will My Down Payment Be? | How Long Does a Mortgage Preapproval Last? | What Is the Difference Between a Standard Preapproval and an Underwritten Preapproval?

Read More

3 How much money do I need?

How Can I Lower My Mortgage Payment? | How Can I Lower My Closing Costs? | When Do I Pay Out-Of-Pocket Costs? | What are Prepaid Items or Escrows? | What Will My Closing Costs Be?

Read More

4 The Basics of Mortgage

What Documents Need to be Updated During the Home Loan Process? | What Contingencies Do I Need? | How Important is the Closing Date? | Steps in the Loan Process | Understanding Common Mortgage Terms

Read More

5 Finding a Real Estate Agent

What Are the Top 6 Questions to Ask a Real Estate Agent? | Should I Use the Seller's Real Estate Agent? | Are Online Discount Realty Services a Good Idea? | How Much Does a Buyer's Real Estate Agent Cost? | Why Do I Need a Real Estate Agent to Buy a Home?

Read More
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