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Guide to South Dakota Mortgages
Maybe you are buying your first home in South Dakota, or perhaps you're relocating to South Dakota from another state. Then again, you may be a long-time South Dakota resident who is looking to either refinance your current mortgage or take out a home equity loan for home improvements. Regardless of your situation, it's important that you educate yourself on South Dakota home loans before shopping for a home and/or mortgage. This article explains what you will need to know before seeking a home loan in South Dakota:
The median price of a home in South Dakota is $211,500. Recently, homes in South Dakota have been appreciating at rates well above the national average. As a result, income levels in many parts of South Dakota are too low to purchase a median-priced home with a conventional loan. Although average interest rates in South Dakota are below the national average, South Dakota has one of the lowest levels of home affordability in the nation.
In South Dakota, before a buyer submits an offer on a home, their real estate agent is required to present them with a completed Real Estate Transfer Disclosure Statement. This document, completed by the seller of the property, requires the seller to name all of the property that will be included in the purchase (refrigerator, stove, alarm system, etc.) and rate certain aspects of the conditions of both the included property and of the house itself. This document requires the seller to disclose any potential problems or hazards that may discourage the buyer from putting an offer in on the home.
South Dakota's Civil Code Provision of the Real Estate Act regulates the issuance of variable interest rates for the purchase of real estate. Therefore, borrowers who are issued large mortgage amounts are guaranteed a fixed rate mortgage. South Dakota law also prohibits the charging of interest more than one day prior to the recording of the mortgage even if the borrower received the loan prior to that time.
In July of 2002, South Dakota law enacted a set of anti-predatory lending laws in order to help protect South Dakota homebuyers from predatory lenders. Some of the provisions of this new set of laws include the prohibition of a lender charging points and fees in excess of 6% of the total principal financed amount, the prohibition of a mortgage company issuing a loan to a borrower in an amount that the borrower could not reasonably afford to repay, and the prohibition of the financing of single-premium credit insurance, among others.
If you're buying a home in the state of South Dakota, you qualify for both federal and state FHA, USDA, and VA loans. First-time home buyers qualify for South Dakota FHA loans with below-market interest rates, and, depending on their eligibility, may also qualify for a loan in order to cover down payment and/or closing costs. Teachers and other professionals who work in an educational capacity may qualify for South Dakota's Extra Credit Teacher Home Purchase Program, a down payment assistance loan with forgivable interest.
In addition to FHA loans, the state of South Dakota also offers comparable programs to persons with disabilities or persons who live with and care for persons with disabilities. The state also offers several unconventional loans designed to aid homebuyers with the costs of their monthly mortgage payment. For example, South Dakota's Interest Only PLUS loan provides qualified homebuyers with a 100% financing 35-year loan that only requires payments toward the accrued interest on the mortgage for the first five years of the loan -- borrowers do not have to pay toward the principal amount borrowed until after the first five years. The individual requirements of each of these loans vary depending on the county in which you are buying a house. Specific requirements can be obtained through the South Dakota Housing Finance Agency.
Last Updated: Friday, May 09, 2008
South Dakota Real Estate Market View
updated Friday, May 09, 2008
| Housing & Social Facts |
South Dakota |
United States |
| Total housing units |
347,931 |
n/a |
| Owner-occupied housing units |
69.0% |
66.9% |
| Renter-occupied housing units |
31.0% |
33.1% |
| Vacant housing units |
10.8% |
10.8% |
| Average Home Value |
$101,700 |
$167,500 |
| Average Mortgage Payment |
$986.00 |
$1,295.00 |
| Average Rental Payment |
$344 .00 |
$388.00 |
| Total Population |
746,033 |
n/a |
| Percentage Male |
49.4% |
49.0% |
| Percentage Female |
50.6% |
51.0% |
| Median Age |
37.0 |
36.4 |
| Under 5 years |
7.2% |
7.0% |
| 18 years and over |
75.0% |
74.6% |
| 65 years and over |
13.6% |
12.1% |
|
1 Year Market Value Change for South Dakota |
| 1yr | 5yr | 10yr |
 |
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Popular South Dakota Cities and Towns
| Location |
Population |
Median Family Income (2005) |
| Aberdeen |
24,658 |
$33,276 |
| Brookings |
18,504 |
$31,266 |
| Huron |
11,893 |
$29,097 |
| Madison |
6,540 |
$30,434 |
| Mitchell |
14,558 |
$31,308 |
| Pierre |
13,876 |
$42,962 |
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| Empire Mortgage |
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When you buy a home, the cost of a loan is more than just rates and points. There are closing costs too. So when you are deciding on a company, choose the one who will quote the total price and stand by it – Empire Mortgage. We guarantee your interest rate, points and loan-related closing costs will not go up after you get an upfront approval certificate and lock in a rate on your favorite home loan. And, with Empire Mortgage's free Lock, then Shop, rate protection, your rate could even go down. You are sure to get the best deal from over 45 different mortgage investors. Our job is to find the best loan program that fits your personal mortgage and/or financial needs. Deal with one mortgage specialist and have access to some of the largest mortgage investors in the nation! What more could you ask for. No need to "shop around" and have company after company pulling your credit report and lowering your credit rating due to inquiries. No more talking to person after person with no one really knowing who you are, or what you really want to accomplish. Here is just a short list of loan options and programs that Empire Mortgage offers: No Money Down, Purchase Loans, Home Equity Loans, No Equity Loans, Debt Consolidation Loans, High Debt to Income Loans, Conforming Loans, Self-Employed Loans and Credit Problems? Empire Mortgage
6009 W. 41st St. Suite 1
Sioux Falls, SD. 57106
Toll Free 877-562-6655
Local 605-335-1996
Fax 605-335-1960 Empire Mortgage is a real estate broker licensed by the SD Dept of Real Estate License
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| Prairie States Mortgage & Financial Services, Inc. |
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Buying a new home is a source of anxiety, frustration and a huge sense of accomplishment. You did not pick the house that was best for someone else; you picked the one that is right for you! Trust our professionals to find the mortgage loan that best suits your needs, too. Less paperwork and more personal attention means you enter a frustration-free zone from application to decision. Refinancing your current mortgage has never been easier. If you thought refinancing meant filling out endless forms, think again! We make it easy and worry-free to reduce your interest rate and monthly payment. We can even help you pay down your balance quickly for comparable monthly payment. Let our professionals guide you to the very best refinanced loan! Tapping into your home equity is easier than ever before. You've been paying down your balance, and property values have gone up! Tap into that wealth and reward yourself. We'll help with the best program to fit your goals. Our mortgage professionals give you the personal attention you deserve and treat you with the respect due a valued customer. We understand you're making a commitment in buying a new home, refinancing and mortgage or cashing out your home equity. So we make a commitment to you. We will help you qualify, apply and be approved for the right mortgage loan for you. Not anybody else! Prairie States Mortgage & Financial Services, Inc.
112 N. Phillips Avenue, Suite 102
Sioux Falls, SD 57104
605.334.1108 - Phone
605.332.2527 - Fax Prairie States Mortgage & Financial Services, Inc., is a real estate broker licensed by the SD Dept of Real Estate License
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| Affinity Mortgage Partners |
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Our mortgage professionals give you the personal attention you deserve and treat you with the respect due a valued customer. We understand you're making a commitment in buying a new home, refinancing and mortgage or cashing out your home equity. So we make a commitment to you. We will help you qualify, apply and be approved for the right mortgage loan for you! Buying a new home is a source of anxiety, frustration and a huge sense of accomplishment. You did not pick the house that was best for someone else; you picked the one that is right for you! Trust our professionals to find the mortgage loan that best suits your needs, too. Less paperwork and more personal attention means you enter a frustration-free zone from application to decision. Refinancing your current mortgage has never been easier. If you thought refinancing meant filling out endless forms, think again! We make it easy and worry-free to reduce your interest rate and monthly payment. We can even help you pay down your balance quickly for comparable monthly payment. Let our professionals guide you to the very best refinanced loan! Tapping into your home equity is easier than ever before. You have been paying down your balance, and property values have gone up! Tap into that wealth and reward yourself. We will help with the best program to fit your goals. We offer: 100% Financing, Fixed Adjustable Rates, Adjustable Rate Mortgages, Home Equity Line of Credit (HELOC), Interest Only and more. Affinity Mortgage Partners
910 E. Redwood Blvd. #2
Brandon, SD 57005
605.582.8700 - Phone
877.908.3650 - Toll Free
605.582.8704 - Fax Affinity Mortgage Partners is a real estate broker licensed by the SD Dept of Real Estate License
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