South Dakota's Best Mortgage Lenders & Current Mortgage Rates | US News Loans

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Best South Dakota Mortgage Lenders

If you’re looking to settle down in the state of Mount Rushmore, South Dakota is waiting for you. Though there are just 398,000 housing units, the homeownership rate of 68% is above the national average, according to the U.S. Census Bureau’s 2018 American Community Survey.

South Dakota’s median housing value is $171,500, which is well below the national median of $229,700. Although home values vary by region, they still remain relatively low across the state, with the highest counties reporting a median price of $218,400.

The Consumer Financial Protection Bureau’s Consumer Credit Panel reports a declining mortgage market, with a 13% decrease in new mortgages from mid-2018 to mid-2019.

U.S. News’ Best South Dakota Mortgage Lenders of 2020

Bank of America
3% Min. Down Payment
600 Min. Credit Score
Chase
3% Min. Down Payment
620 Min. Credit Score
Guild Mortgage
3% Min. Down Payment
600 Min. Credit Score
loanDepot
10% Min. Down Payment
620 Min. Credit Score
Quicken Loans
3% Min. Down Payment
620 Min. Credit Score
Veterans United Home Loans
0% Min. Down Payment
660 Min. Credit Score
Lender
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3% Min. Down Payment
600 Min. Credit Score
Lender
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3% Min. Down Payment
620 Min. Credit Score
Lender
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3% Min. Down Payment
600 Min. Credit Score
Lender
Learn More
10% Min. Down Payment
620 Min. Credit Score
Lender
Learn More
3% Min. Down Payment
620 Min. Credit Score
Lender
Learn More
0% Min. Down Payment
660 Min. Credit Score

Best for large loan amounts

Bank of America

Bank of America serves roughly 66 million customers in all 50 states. The lender offers conventional, Federal Housing Administration, Department of Veterans Affairs and jumbo loans, as well as home equity lines of credit and mortgage refinancing.

Lender Highlights
  • Mortgage types: ARMs, conventional, FHA, first-time homebuyer program, home equity lines of credit, refinancing, VA
  • Minimum FICO credit score: 600
  • Maximum loan amount: $5 million
  • Better Business Bureau rating: A+

Best Features

  • Wide variety of mortgages

  • Annual percentage rate or closing cost discounts for qualifying Bank of America and Merrill Lynch clients

  • No closing costs and no annual, balance transfer and cash advance fees for HELOCs

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Best for low costs

Chase

Chase, one of the nation’s largest banks, offers mortgage and refinance loans for qualified borrowers. Home equity loans and HELOCs are also available.

Before You Apply
  • Mortgage types offered: ARMs, conventional, FHA, jumbo, refinance and VA
  • Minimum FICO credit score: 620
  • Maximum loan amount: $3 million
  • Better Business Bureau rating: A+

Best Features

  • Accepts down payments as low as 3%

  • Receives high marks from the Better Business Bureau

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Best for product selection

Guild Mortgage

Guild Mortgage, founded in 1960, specializes in home loans and serves borrowers nationwide. The lender’s full suite of products includes conventional and government-backed mortgages and home equity loans.

Before You Apply
  • Mortgage types: ARMs, conventional, FHA, jumbo, manufactured home, refinance, reverse, USDA and VA
  • Minimum FICO credit score: 600
  • Maximum loan amount: varies
  • Better Business Bureau rating: A+

Best Features

  • Receives strong customer service ratings from the Better Business Bureau

  • Offers a broad range of mortgage products

  • Provides special mortgage programs for first-time buyers and manufactured homebuyers

See full profile

Best for customer service

loanDepot

LoanDepot was established in 2010 and since then has financed more than $70 billion in mortgages. It offers FHA, conventional and other mortgage options. Borrowers may qualify for a loan with a FICO credit score as low as 580.

Highlights:
  • Mortgage types offered: Conventional, FHA, VA, ARM, Refinancing (conventional), Refinancing (FHA), Refinancing (VA), Home equity loans
  • Minimum FICO credit score: 500 with conditions
  • Maximum debt-to-income ratio: 43% for FHA
  • Maximum combined loan-to-value ratio: 90%
  • J.D. Power satisfaction rating: Four out of five

Best Features

  • LoanDepot mortgages have a lifetime guarantee, which means if you ever decide to refinance an existing loanDepot loan, the company will waive the lender fees and reimburse appraisal fees.

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Best for product availability

Quicken Loans

Quicken Loans is a nationwide mortgage lender with several mortgage options. Known for customer service, the lender has an A+ Better Business Bureau rating and received a rating of five (among the best) in the 2018 U.S. Primary Mortgage Origination Satisfaction Study.

Highlights:
  • Mortgage types offered: ARM, FHA, VA, Refinancing (FHA), USDA, Conventional, Refinancing (conventional)
  • Minimum FICO credit score: 580 (FHA), other loans vary
  • Maximum debt-to-income ratio: 60%
  • J.D. Power satisfaction rating: Five out of five

Best Features

  • Complete loan process available online.

  • Wide variety of mortgage products.

  • Good customer service ratings.

See full profile

Best for VA loans

Veterans United Home Loans

Veterans United Home Loans provides mortgages to veterans and military families in all 50 states and Washington, D.C., and specializes in VA loans. In 2019, Veterans United Home Loans generated the largest number of VA loans in the nation.

Before You Apply
  • Mortgage types: ARMs, conventional, FHA, refinance, USDA and VA
  • Minimum FICO credit score: 660
  • Maximum loan amount: $1.5 million
  • Better Business Bureau rating: A+

Best Features

  • Specializes in VA loans

  • Requires no military service

  • Sets no minimum loan amount

See full profile

What Are the Mortgage Rates in South Dakota?

The average interest rate for a 30-year fixed-rate conforming mortgage in South Dakota is 2.94%.

Home interest rates range from 2.5% to 3.75% in South Dakota.

What Are Today’s Mortgage Rates?

Loan Types

This Week's Rate

Last Week's Rate

30-year fixed-rate mortgage 2.87% 2.9%
15-year fixed-rate mortgage 2.34% 2.38%
30-year fixed-rate jumbo mortgage 2.89% 2.93%
5/1 ARM 2.99% 3.03%
5/1 jumbo ARM 2.86% 2.85%

*Rates as of Jan. 1, 2021

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What Are Some South Dakota Homebuyer Programs?


South Dakota homebuyers can get help with down payments and closing costs from these South Dakota Housing Development Authority programs.


Available to: First-time homebuyers of homes with purchase prices below $275,000 or buyers who haven’t owned a home in three years; you can also ask for a veterans waiver to see if you qualify.
Income limits: Vary by county (see income limits).
First-time homebuyers only?: No.
Benefits: Low-interest loans.


Available to: Eligible homebuyers who are purchasing a primary residence in South Dakota.
Income limits: Vary by county.
First-time homebuyers only?: No.
Down payment and closing cost assistance: The Fixed Rate Plus loan allows for down payment funds of 3% of the first mortgage loan as a second mortgage at 0% interest rate, due-on-sale or satisfaction, with no payments and no additional fees.


Available to: Homebuyers with a minimum credit score of 620 who are purchasing a home less than $336,000.
Income limits: $93,360 to $105,420.
First-time homebuyers only?: No.
Benefits: Low-interest loans, reduced paperwork, reduced mortgage insurance.
Down payment and closing cost assistance: Can include down payment and closing cost assistance.


Available to: Homebuyers meeting specific income and asset requirements. Homes are built by prison inmates and are energy efficient and low maintenance. Various financing options are available.
Income limits: Vary by age and family size (see income limits).
First-time homebuyers only?: No.
Down payment and closing cost assistance: Ask your lender about financing options.

Advertising Disclosure: Some of the loan offers on this site are from companies who are advertising clients of U.S. News. Advertising considerations may impact where offers appear on the site but do not affect any editorial decisions, such as which loan products we write about and how we evaluate them. This site does not include all loan companies or all loan offers available in the marketplace.