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$510,400$653,550$789,950$981,700
BEADLEHURON, SD$510,400$653,550$789,950$981,700
BENNETTNON-METRO$510,400$653,550$789,950$981,700
BON HOMMENON-METRO$510,400$653,550$789,950$981,700
BROOKINGSBROOKINGS, SD$510,400$653,550$789,950$981,700
BROWNABERDEEN, SD$510,400$653,550$789,950$981,700
BRULENON-METRO$510,400$653,550$789,950$981,700
BUFFALONON-METRO$510,400$653,550$789,950$981,700
BUTTENON-METRO$510,400$653,550$789,950$981,700
CAMPBELLNON-METRO$510,400$653,550$789,950$981,700
CHARLES MIXNON-METRO$510,400$653,550$789,950$981,700
CLARKNON-METRO$510,400$653,550$789,950$981,700
CLAYVERMILLION, SD$510,400$653,550$789,950$981,700
CODINGTONWATERTOWN, SD$510,400$653,550$789,950$981,700
CORSONNON-METRO$510,400$653,550$789,950$981,700
CUSTERNON-METRO$510,400$653,550$789,950$981,700
DAVISONMITCHELL, SD$510,400$653,550$789,950$981,700
DAYNON-METRO$510,400$653,550$789,950$981,700
DEUELNON-METRO$510,400$653,550$789,950$981,700
DEWEYNON-METRO$510,400$653,550$789,950$981,700
DOUGLASNON-METRO$510,400$653,550$789,950$981,700
EDMUNDSABERDEEN, SD$510,400$653,550$789,950$981,700
FALL RIVERNON-METRO$510,400$653,550$789,950$981,700
FAULKNON-METRO$510,400$653,550$789,950$981,700
GRANTNON-METRO$510,400$653,550$789,950$981,700
GREGORYNON-METRO$510,400$653,550$789,950$981,700
HAAKONNON-METRO$510,400$653,550$789,950$981,700
HAMLINWATERTOWN, SD$510,400$653,550$789,950$981,700
HANDNON-METRO$510,400$653,550$789,950$981,700
HANSONMITCHELL, SD$510,400$653,550$789,950$981,700
HARDINGNON-METRO$510,400$653,550$789,950$981,700
HUGHESPIERRE, SD$510,400$653,550$789,950$981,700
HUTCHINSONNON-METRO$510,400$653,550$789,950$981,700
HYDENON-METRO$510,400$653,550$789,950$981,700
JACKSONNON-METRO$510,400$653,550$789,950$981,700
JERAULDHURON, SD$510,400$653,550$789,950$981,700
JONESNON-METRO$510,400$653,550$789,950$981,700
KINGSBURYNON-METRO$510,400$653,550$789,950$981,700
LAKENON-METRO$510,400$653,550$789,950$981,700
LAWRENCESPEARFISH, SD$510,400$653,550$789,950$981,700
LINCOLNSIOUX FALLS, SD$510,400$653,550$789,950$981,700
LYMANNON-METRO$510,400$653,550$789,950$981,700
MARSHALLNON-METRO$510,400$653,550$789,950$981,700
MCCOOKSIOUX FALLS, SD$510,400$653,550$789,950$981,700
MCPHERSONNON-METRO$510,400$653,550$789,950$981,700
MEADERAPID CITY, SD$510,400$653,550$789,950$981,700
MELLETTENON-METRO$510,400$653,550$789,950$981,700
MINERNON-METRO$510,400$653,550$789,950$981,700
MINNEHAHASIOUX FALLS, SD$510,400$653,550$789,950$981,700
MOODYNON-METRO$510,400$653,550$789,950$981,700
OGLALA LAKOTANON-METRO$510,400$653,550$789,950$981,700
PENNINGTONRAPID CITY, SD$510,400$653,550$789,950$981,700
PERKINSNON-METRO$510,400$653,550$789,950$981,700
POTTERNON-METRO$510,400$653,550$789,950$981,700
ROBERTSNON-METRO$510,400$653,550$789,950$981,700
SANBORNNON-METRO$510,400$653,550$789,950$981,700
SPINKNON-METRO$510,400$653,550$789,950$981,700
STANLEYPIERRE, SD$510,400$653,550$789,950$981,700
SULLYNON-METRO$510,400$653,550$789,950$981,700
TODDNON-METRO$510,400$653,550$789,950$981,700
TRIPPNON-METRO$510,400$653,550$789,950$981,700
TURNERSIOUX FALLS, SD$510,400$653,550$789,950$981,700
UNIONSIOUX CITY, IA-NE-SD$510,400$653,550$789,950$981,700
WALWORTHNON-METRO$510,400$653,550$789,950$981,700
YANKTONYANKTON, SD$510,400$653,550$789,950$981,700
ZIEBACHNON-METRO$510,400$653,550$789,950$981,700

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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