What are Conventional Loans and Conforming Loans?

By definition, a Conventional Loan is any mortgage that’s not guaranteed or insured by the federal government. South Dakota conventional loans may be either “conforming” and “non-conforming”, although ‘conventional loans’ generally refer to ‘conforming loans’. Therefore South Dakota conventional loan limits are the same thing as South Dakota conforming loan limits.

South Dakota Conventional Loan Limits

What is the maximum amount that I can borrow?

Conventional loan limits in South Dakota are determined by:

  • South Dakota Conventional LoansMaximum LTV Ratio:  The maximum financing loan-to-value ratio for conventional mortgages is 80% – 97% of the appraised value of the home or its selling price, whichever is lower. Learn how to calculate loan-to-value.
  • Maximum Loan Amount: Conventional loan limits in South Dakota are set at the floor amount of $424,100 across the entire state. Metro areas in SD with a conforming limit of $424,100 include Aberdeen, Rapid City and Sioux Falls.

Search all Conventional Loan Limits in South Dakota:

County Name
Area
1-Unit
2-Unit
3-Unit
4-Unit
AURORANON-METRO$424,100$543,000$656,350$815,650
BEADLEHURON, SD$424,100$543,000$656,350$815,650
BENNETTNON-METRO$424,100$543,000$656,350$815,650
BON HOMMENON-METRO$424,100$543,000$656,350$815,650
BROOKINGSBROOKINGS, SD$424,100$543,000$656,350$815,650
BROWNABERDEEN, SD$424,100$543,000$656,350$815,650
BRULENON-METRO$424,100$543,000$656,350$815,650
BUFFALONON-METRO$424,100$543,000$656,350$815,650
BUTTENON-METRO$424,100$543,000$656,350$815,650
CAMPBELLNON-METRO$424,100$543,000$656,350$815,650
CHARLES MIXNON-METRO$424,100$543,000$656,350$815,650
CLARKNON-METRO$424,100$543,000$656,350$815,650
CLAYVERMILLION, SD$424,100$543,000$656,350$815,650
CODINGTONWATERTOWN, SD$424,100$543,000$656,350$815,650
CORSONNON-METRO$424,100$543,000$656,350$815,650
CUSTERRAPID CITY, SD$424,100$543,000$656,350$815,650
DAVISONMITCHELL, SD$424,100$543,000$656,350$815,650
DAYNON-METRO$424,100$543,000$656,350$815,650
DEUELNON-METRO$424,100$543,000$656,350$815,650
DEWEYNON-METRO$424,100$543,000$656,350$815,650
DOUGLASNON-METRO$424,100$543,000$656,350$815,650
EDMUNDSABERDEEN, SD$424,100$543,000$656,350$815,650
FALL RIVERNON-METRO$424,100$543,000$656,350$815,650
FAULKNON-METRO$424,100$543,000$656,350$815,650
GRANTNON-METRO$424,100$543,000$656,350$815,650
GREGORYNON-METRO$424,100$543,000$656,350$815,650
HAAKONNON-METRO$424,100$543,000$656,350$815,650
HAMLINNON-METRO$424,100$543,000$656,350$815,650
HANDNON-METRO$424,100$543,000$656,350$815,650
HANSONMITCHELL, SD$424,100$543,000$656,350$815,650
HARDINGNON-METRO$424,100$543,000$656,350$815,650
HUGHESPIERRE, SD$424,100$543,000$656,350$815,650
HUTCHINSONNON-METRO$424,100$543,000$656,350$815,650
HYDENON-METRO$424,100$543,000$656,350$815,650
JACKSONNON-METRO$424,100$543,000$656,350$815,650
JERAULDNON-METRO$424,100$543,000$656,350$815,650
JONESNON-METRO$424,100$543,000$656,350$815,650
KINGSBURYNON-METRO$424,100$543,000$656,350$815,650
LAKENON-METRO$424,100$543,000$656,350$815,650
LAWRENCESPEARFISH, SD$424,100$543,000$656,350$815,650
LINCOLNSIOUX FALLS, SD$424,100$543,000$656,350$815,650
LYMANNON-METRO$424,100$543,000$656,350$815,650
MARSHALLNON-METRO$424,100$543,000$656,350$815,650
MCCOOKSIOUX FALLS, SD$424,100$543,000$656,350$815,650
MCPHERSONNON-METRO$424,100$543,000$656,350$815,650
MEADERAPID CITY, SD$424,100$543,000$656,350$815,650
MELLETTENON-METRO$424,100$543,000$656,350$815,650
MINERNON-METRO$424,100$543,000$656,350$815,650
MINNEHAHASIOUX FALLS, SD$424,100$543,000$656,350$815,650
MOODYNON-METRO$424,100$543,000$656,350$815,650
OGLALA LAKOTANON-METRO$636,150$814,500$984,525$1,223,475
PENNINGTONRAPID CITY, SD$424,100$543,000$656,350$815,650
PERKINSNON-METRO$424,100$543,000$656,350$815,650
POTTERNON-METRO$424,100$543,000$656,350$815,650
ROBERTSNON-METRO$424,100$543,000$656,350$815,650
SANBORNNON-METRO$424,100$543,000$656,350$815,650
SHANNONNON-METRO$417,000$533,850$645,300$801,950
SPINKNON-METRO$424,100$543,000$656,350$815,650
STANLEYPIERRE, SD$424,100$543,000$656,350$815,650
SULLYPIERRE, SD$424,100$543,000$656,350$815,650
TODDNON-METRO$424,100$543,000$656,350$815,650
TRIPPNON-METRO$424,100$543,000$656,350$815,650
TURNERSIOUX FALLS, SD$424,100$543,000$656,350$815,650
UNIONSIOUX CITY, IA-NE-SD$424,100$543,000$656,350$815,650
WALWORTHNON-METRO$424,100$543,000$656,350$815,650
YANKTONYANKTON, SD$424,100$543,000$656,350$815,650
ZIEBACHNON-METRO$424,100$543,000$656,350$815,650

South Dakota conforming limits can change anytime. Check back often to ensure accuracy.

What factors determine if i’m eligible for a Conventional Loan in South Dakota?

Conventional conforming loans follow the terms and conditions set forth by government sponsored enterprises (GSE’s) like Fannie Mae or Freddie Mac. To be eligible for a Conforming Loan in South Dakota, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. A FICO credit score of 620 or above is generally required to obtain a conventional loan approval. You must also have enough income to pay your housing costs plus all additional monthly debt.

How much money will I need for the down payment and closing costs?

Conventional Loan Down PaymentConventional home loans require the home buyer to invest between 3% and 20% of the sales price towards the down payment and closing costs. If the sales price is $100,000 for example, the mortgage applicant must invest at least $3,000 – $20,000 to meet conventional mortgage down payment requirements, depending on the program.

Minimum South Dakota Conventional Loan Down Payment:

Residence UsageFixed-Rate Mortgage (FRM)Adjustable-Rate Mortgage (ARM)
1 Unit Primary3% Down Payment10% Down Payment
2 Units Primary15% Down Payment25% Down Payment
3 Units Primary25% Down Payment35% Down Payment
4 Units Primary25% Down Payment35% Down Payment
1 Unit Second Home10% Down Payment20% Down Payment
1 Unit Investment15% Down Payment25% Down Payment
2 Units Investment25% Down Payment35% Down Payment
3 Units Investment25% Down Payment35% Down Payment
4 Units Investment25% Down Payment35% Down Payment

What property types are allowed for Conventional Conforming Mortgages?

Conventional mortgage guidelines allow you to purchase warrantable condos, planned unit developments, modular homes, manufactured homes, and 1-4 family residences. Conventional loans can be used to finance primary residences, second homes and investment property.

Learn more about conventional mortgages.

What types of mortgage and refinance programs do Conventional Loans offer in South Dakota?

There are several varieties of standard home purchase, first-time home buyer and conventional refinance loans available in South Dakota:

  • Conventional Purchase Loans – Conventional loans offer a variety of programs for applicants with good credit ratings to buy a home. Both 3% down mortgage and 5% down mortgage options are available, however 20% down is the minimum amount required to avoid private mortgage insurance.
  • Conventional Rate/Term Refinance: Conventional Rate/Term refinancing loans are for borrowers who currently have an FHA, VA, USDA or conventional fixed rate mortgage or ARM loan and wish to refinance into a conventional mortgage with a lower interest rate. If you’re a homeowners considering a stable, conventional fixed-rate mortgage, this program may also eliminate your mortgage insurance if you have at 20% equity in your home.  If not, Conventional 97% loan programs may also work for you.
  • Cash-Out Refinance: A Conventional Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.

What factors determine if I am eligible for a Conventional Refinance Loan?

To meet conventional refinance mortgage requirements in South Dakota, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. In addition, your credit background will be considered. Finally, you must be able to cover closing costs and have enough income to pay your monthly debt.

Conventional Loan Requirements

More South Dakota Mortgage Limits

You may also want to visit these additional home loan resources before deciding on a mortgage program:

 

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