Best Mortgage Lenders in South Dakota

Bank of America is recognized as the leading mortgage lender in South Dakota

South Dakota offers a slew of mortgage lenders to help you buy a new home or refinance your current home. Don’t miss out — take a look at Benzinga’s guide to the best South Dakota mortgage lenders. It’ll help you get started and launch your mortgage search.

Quick Look: Best Mortgage Lenders in South Dakota

• Best for First-Time Home Buyers: Bank of America
• Best for Self-Employed Professionals: Better.com
• Best Online Lender: Rocket Mortgage®
• Best for FHA Loans in South Dakota: Guaranteed Rate
• Best for VA Loans: Veterans United

The 5 Best Mortgage Companies in South Dakota

You want to work with the best mortgage company possible. Here are our top 5 picks for your best choices in South Dakota.

1. Best for First-Time Home Buyers: Bank of America

Bank of America is a great option for many borrowers, but especially first-time home buyers. It offers the comfort of a familiar traditional bank setting and plenty of online resources. 

You can use the Bank of America website to explore mortgage types, learn how to get preapproved or apply for a mortgage, and more. It even offers an online First-Time Homebuyer Online Edu-Series™ to give you a structured way to learn everything you need to know about buying your first home. 

Bank of America also provides a patented Digital Mortgage Experience®. You’ll have access to experienced lending officers ready to help you and additional perks like the ability to lock in your mortgage rate.

Why We Love It: 

Bank of America is an excellent option for first-time home buyers. It offers various mortgage options, including low-down payment programs. It also provides online tools to help buyers understand their finances and experienced loan officers to guide them through the home-buying process. Its commitment to community involvement makes homeownership more accessible for everyone.

2. Best for Self-Employed Professionals: Better.com

Better, an online lender, can help you no matter your circumstances.

Its mission is to make homeownership simpler, faster, and more accessible across the U.S.

Better can give you the resources you need to navigate the mortgage process as a self-employed professional. 

Get a quick loan estimate and you’ll experience complete transparency.

Better’s loan officers don’t work on commission, so you can trust that this lender will find the best loan for you.

Why We Love It: 

Better.com Mortgage lenders provide a seamless experience for self-employed professionals in the mortgage process, emphasizing transparency with no hidden fees. With competitive rates and excellent customer service, they empower individuals to make informed financial decisions and confidently pursue homeownership, making them a trusted partner for the community.

Rocket Mortgage provides a quick, easy online mortgage experience. You can use its website to navigate and compare your mortgage options. It even allows you to narrow down the right mortgages for purchase or refinancing. 

Its site also serves as a resource for answers to common questions and its mortgage calculator can help you estimate your monthly payments.

Call or chat online with a Rocket Mortgage customer service agent for additional support.

Why We Love It: 

Rocket Mortgage® simplifies the mortgage process with an easy-to-use online platform that allows for quick applications and real-time loan estimates. It provides personalized support from expert advisors, ensuring clients are guided throughout the process. Its technology offers convenience in managing loans, along with competitive rates and diverse loan options to help homeowners confidently achieve their dreams.

4. Best for FHA Loans in South Dakota: Guaranteed Rate

Home buyer programs can be confusing, but Guaranteed Rate has helped borrowers secure FHA loans since 2000. Use the Guaranteed Rate website to learn more about the basic requirements and advantages of FHA loans and other home buyer programs. 

This lender promises low rates and cutting-edge technology. You’ll also benefit from loan experts who can help you navigate the mortgage process. 

Speak with a loan expert to discuss your mortgage options and learn more about FHA loans.

Why We Love It: 

Guaranteed Rate values FHA loans in South Dakota for providing affordable homeownership options, especially for first-time buyers. With low down payment requirements, competitive interest rates, and flexible credit score criteria, these loans are accessible to a wider range of applicants. The Guaranteed Rate team is committed to guiding clients through the loan process, ensuring they feel informed and confident as they achieve their homeownership dreams.

5. Best for VA Loans: Veterans United

Veterans United specializes in helping qualified service members and veterans purchase a home. This lender even has military advisors on staff to help raise awareness and educate veterans about VA loans and homeownership.

The Veterans United website includes the service requirements and benefits of a VA loan. You’ll also find resources to help you better understand current interest rates, what you can afford, and more. 

Start with an online quote, then contact the customer service team 24/7 to answer any questions you have about the mortgage process.

Why We Love It: 

Veterans United helps veterans achieve homeownership through VA loans, which offer benefits like no down payment and competitive interest rates. Their dedicated team provides personalized guidance for a smooth mortgage process, focusing on empowering veterans and supporting them in making informed financial decisions.

How the Loan Works

It’s important to understand all mortgages are not the same. Finding the right mortgages takes time, consideration and sometimes assistance from a knowledgeable loan advisor. 

Familiarize yourself with the basics before you move forward in the mortgage process. Let’s start with mortgage types and terms:

• You’ll need to choose a mortgage type, which can range from conventional mortgages to government-backed options.
• Your mortgage type will carry a mortgage term. This is the length of time that you’ll repay your mortgage. Your mortgage term will also include the type of interest that you’re paying on your mortgage.

Loan Types

There are several mortgage types out there. Here are three common mortgage types:

• Conventional loans are simply mortgage loans that aren’t part of any specific government program. There’s no specific set of guidelines or requirements for a conventional loan. Check with your lender to see what its requirements are. You can expect a required credit score of at least 620 and a debt-to-income ratio of 50% or less.
• FHA loans are part of a mortgage program regulated and insured by the Federal Housing Administration. The funding for FHA loans comes from private lenders. Some of the benefits are down payments as low as 3.5% and lower credit score minimums. FHA loans also come with maximum loan amounts that vary by county.
• VA loans are part of a mortgage program backed and guaranteed by the Department of Veterans Affairs. The VA sets service requirements to qualify for a VA loan. The benefits of VA loans include lower interest rates, more lenient borrowing requirements, and no down payment requirement.

Standard Terms

• 30-year fixed loan: This mortgage term means you’ll pay back your mortgage over 30 years. A fixed-rate loan means that your interest rate will remain the same throughout the lifetime of your loan. This allows your monthly payments to remain the same. 
• 15-year fixed loan: A 15-year fixed loan is similar to a 30-year fixed loan. You’ll benefit from the same interest rate for the lifetime of your mortgage with consistent mortgage payments that you can work into your budget. 

The difference between a 15-year fixed loan and a 30-year fixed-rate loan is that you’ll repay your mortgage over a period of 15 years instead of 30. This may allow you to pay less interest over time since you’re making fewer total mortgage payments. Your monthly payments will be higher than a 30-year fixed loan.

• 5/1 adjustable-rate-mortgages (ARMs): This hybrid mortgage term allows you to benefit from a fixed interest rate for the first five years of your mortgage. Your interest rate may change once per year after five years. It can continue to change each year until your mortgage is completely paid off. You’ll encounter similar mortgage terms, like the 3/1 ARM, 7/1 ARM and 10/1 ARM.

Which Lender is Best for You?

Finding the right mortgage lender is just as important as finding the right mortgage type. Here are some qualities to look for in your lender:

• Honesty: A good lender will be upfront with you about the costs and fees that come with its mortgages.
• Helpful advice: Your lender should be able to help you understand your options and how to make the right decision for your needs.

Lender Credit Score Minimums in South Dakota

Your credit score will be looked at by your lender when you apply for a mortgage. Your credit report is based on information collected about you from creditors through the 3 major credit bureaus — Equifax, TransUnion and Experian. The information collected includes information on your credit report. 

Your credit report is a detailed report of your financial history, including your payment and borrowing history. Lenders use this information to determine if you are a reliable borrower.

Current Rates in South Dakota

Mortgage rates change frequently with the current market. Personal factors also play a part in mortgage rates a lender can offer you. Benzinga constantly monitors mortgage rate fluctuations and we update our mortgage rate tables to reflect the most recent data.

Average Days to Close on a Loan

The closing process is the last step before you can move into your new home. During this time you can expect:

• Paperwork: You’ll have plenty of paperwork to read through and sign during this time.
• Payments: You’ll need to make your down payment and pay for any closing costs.
• Proof of insurance: Your lender won’t be able to release the funds for your loan until you show proof of your homeowners' insurance policy.

Frequently Asked Questions

Related content: Best Homeowners Insurance in South Dakota