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South Dakota Mortgage and Refinance Rates

On Wednesday, May 31, 2023, the national average 30-year fixed mortgage APR is 7.15%. The national average 30-year fixed refinance APR is 7.21%, according to Bankrate's latest survey of the nation's largest mortgage lenders.

Bankrate has offers for South Dakota mortgage and refinances from top partners that are well below the national average. Compare, apply, and start saving today.

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South Dakota mortgage overview

Becoming a homeowner in South Dakota, a state famous for being the location of Mount Rushmore, can be more affordable compared to housing markets in other states. As of December 2022, the median list price of a home in South Dakota is about $308,000, according to Zillow, which is considerably lower than the median overall in the U.S. In 2023, the conforming loan limit for every county in the state is $726,200, while the FHA loan limit is $472,030.


As of Wednesday, May 31, 2023, current mortgage interest rates in South Dakota are 7.13% for a 30-year fixed mortgage and 6.47% for a 15-year fixed mortgage.

First-time homebuyer programs in South Dakota

The South Dakota Housing Development Authority works with lenders in the state to offer first-time homebuyers a fixed low-interest mortgage. In order to qualify, you must not have owned a home in the past three years; however, veterans may be eligible for a waiver from this requirement.

The program has income limits based on household size and location, which change year to year. In 2020, the income limit for a two-person household in Minnehaha County (Sioux Falls), for example, is $86,200.

The program also imposes a purchase price limit of $275,000.

For more information and to see if you qualify, contact a participating lender listed on the South Dakota Housing Development Authority’s website.

Governor’s House Program

In addition to a competitive fixed-rate mortgage, the South Dakota Housing Development Authority also offers The Governor’s House Program that provides inexpensive homes for purchase to those who are low- to moderate-income, particularly seniors or those with disabilities. Program participants can select from two- or three-bedroom models that cost between $50,200 and $57,900.

In order to qualify, you must have an income of $54,460 or less for a one- or two-person household or $62,240 for a three-person household. There are also net worth and liquid asset limits based on age. In addition, you must be able to purchase a parcel of land for the home to be located on, as well as obtain permits and other features for the home, such as appliances and utilities.

Down Payment Assistance

Saving enough money for a down payment or closing costs can be one of the most significant obstacles to homeownership. The South Dakota Housing Development Authority offers a program to help with this challenge. The Fixed Rate Plus loan provides as much as 3 percent of your first mortgage to cover closing costs or a down payment. The money is provided via a zero-percent, no-monthly-payment second mortgage, which is due when the first mortgage is paid off or when the home is sold.

Homes Are Possible Down Payment and Closing Cost Assistance

Beyond the state’s housing authority, South Dakota is home to another organization, Homes Are Possible Inc. (HAPI), that offers down payment and closing cost support in specific parts of the state.

For buyers in Brown County (Aberdeen), HAPI is currently offering $3,500 in down payment or closing cost assistance in the form of an interest-free loan. The loan must be paid back if you sell the house, refinance or transfer the title.

For those purchasing outside of Brown County, HAPI also offers Housing Opportunity Funds, a $4,000 forgivable grant. The income limits for the grant are set at 80 percent of the area median income (AMI), and include household size considerations. Homebuyer education is required.

GROW South Dakota Down Payment and Closing Cost Assistance

Yet another option for those who may be struggling to come up with a down payment for a home purchase, the GROW South Dakota organization provides cash for either a down payment or closing costs as a zero-percent deferred loan, ranging from $5,000 to $10,500. The money must be paid back if you refinance the home, sell it, or it is no longer your primary residence, or when the loan reaches maturity or is paid in full, whichever happens first.

As with other programs, in order to qualify, you must meet eligibility guidelines, including income limits, and complete a homebuyer education course.

South Dakota mortgage refinancing

There’s a variety of options for those ready to refinance a mortgage in South Dakota, whether through their existing lender or another bank or financial institution. Before settling on a lender, be sure to do your research, shop around and compare rates and loan terms. You’ll want to get the most favorable loan possible, and one that won’t cost you more than you’re saving by refinancing.

South Dakota mortgage resources