South Dakota FHA Loan
If you are thinking of buying property in South Dakota, then you really should consider a South Dakota FHA mortgage. Whether you're looking to purchase a home or you're looking to refinance your home, the FHA loan program is by far the most effective vehicle for achieving financing solutions. Did you know that in many areas of South Dakota, our FHA program now offers financing for mobile homes, as well as factory-built (modular homes)? Very few South Dakota mortgage lenders are offering loan products for those who want to have a mobile home, but still want the low fixed rate options offered when financing traditional stick-built houses.
Need help with a downpayment? For those planning to wed in South Dakota, you can strategically setup an FHA loan Bridal Registry Account, which helps engaged couples save for a down payment on a new home. A FHA Bridal Registry Account is like an interest-bearing savings account which the bride and the groom can set up so that their family and friends can deposit cash wedding gifts to be later used for making a down payment. Yeah, we think this is a neat idea too!
There are different varieties of down payment gift options available in South Dakota. According to the FHA, 100% of your down payment can be made available through gifts. The gift donors could be a relative, charity, long-time family friend, your employer, along with other qualifying relationships also. In addition, with the FHA loan program, sellers can pay up to 6% of the purchase price towards your closing costs, pre-paid interest, property taxes, and homeowner insurance escrows.
The FHA's maximum loan amount can vary depending on the county where you live. Each county has its maximum FHA Loan Limit, so you'll want to review the loan limits for your county before you think about which home to purchase. The reality is, the loan limits are high enough that they don't impact the vast majority of home buyers or those looking to refinance.
An FHA mortgage loan in South Dakota offers many benefits like:
- There are no income limits on a South Dakota FHA loan.
- Anyone can apply -- you do not have to be a first-time home buyer to get an FHA Loan!
- FHA underwriting offers more relaxed credit quality, asset, and income requirements.
- Downpayments are as low as 3.5% versus conventional loan requirements that typically range from 5% to 20% down.
- Your co-borrower doesn't have to live in the home with you to be eligible for the FHA mortgage in South Dakota.
- If the interest rates fall and you want to refinance, or perhaps you just want to change from a 30 year fixed to a 15 year fixed, you will not be required to qualify all over again for a new loan. Simply streamline refinance into a lower payment.
- The basic FHA loan offers low fixed interest rates comparable -- and sometimes lower than -- traditional convention and bank financing!
Our South Dakota FHA home rehabilitation loans, also known as FHA 203k loans, will allow you to borrow additional money for home improvement purposes like adding a new bedroom, new bathroom, or other necessary home addition.
Why not contact us today to find out more about our great South Dakota FHA mortgage programs?