Rapid City FHA Loan Rates, Closing Costs & Stats

RAPID CITY, SD

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    • FHA loans are mortgages created in the 1930's to help insulate lenders from credit risks and help promote home ownership. The Federal Housing Administration (hence, FHA) allows for lower downpayments and credit scores-- making these loans much more accessible than traditional mortgages.

    FHA loans typically need just a 3.5% downpayment with credit scores of 580 or better. For credit scores between 500-579, the downpayment needs to be at least 10%.

    While FHA loans make home ownership much more accessible to first-time homebuyers, they do require PMI (purchase money insurance)-- an additional insurance premium that is paid to the FHA to help cover defaults.

    For additional requirements as defined by the FHA, click here.

    Rapid City's 41 lenders originated 305 FHA loans during 2023. The total origination value was $85,175,000, with an average FHA loan value of $279,262.

    Rapid City FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Rapid City averaged 6.49% for the week of 2024-04-19, compared to the national average (all FHA variants) of 6.855% for the same period.

    Rapid City's average FHA mortgage closing costs are $7,610.

    The average rate for the prior week (2024-04-12) was 6.48% and one month ago for the week of 2024-03-15, the average rate was 6.55%.

    The average rate one year ago was 5.98%.

    For refis of the same type during the week of 2024-04-19, the average rate was 7.05%.

    Click on whitespace and scroll within the chart to zoom in/out. Larger bubbles equate with more originations.

    Rapid City FHA Loan Lenders by Rates & Fees

    The below table looks at the average fees/closing costs and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Rapid City level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    CMG MORTGAGE, INC. 39 6.76% $12,028
    Unify Home Lending Inc. 38 6.53% $8,717
    Plains Commerce Bank 35 6.41% $9,680
    UNITED WHOLESALE MORTGAGE, LLC 33 6.46% $11,456
    Gateway First Bank 15 6.49% $7,023
    AMERICAN PACIFIC MORTGAGE CORPORATION 13 6.88% $13,478
    QUICKEN LOANS, LLC 11 6.19% $11,719
    Servion, Inc. 9 6.51% $14,292
    PENNYMAC LOAN SERVICES, LLC 5 5.93% $13,734
    DAS Acquisition Company, LLC 4 6.75% $11,327
    BLACK HILLS FEDERAL CREDIT UNION 3 6.71% $6,282
    First National Bank 3 6.67% $7,131
    Century Mortgage Company DBA Century Lending Company 3 6.63% $12,484
    BROKER SOLUTIONS, INC. 2 7.44% $10,080
    NEWREZ LLC 2 6.25% $16,953
    Mr. Cooper ( Nationstar Mortgage ) 2 6.44% $21,400
    MUTUAL OF OMAHA MORTGAGE, INC. 1 6.25% $20,150
    Northpointe Bank 1 7.25% $12,650
    OPEN MORTGAGE, LLC 1 6.25% $16,498
    PLANET HOME LENDING, LLC 1 5.38% $6,500
    POLARIS HOME FUNDING CORP. 1 6.50% $19,417
    The Central Trust Bank 1 6.00% $7,962
    Truist 1 6.25% $6,802
    U.S. Bank 1 6.38% $9,417
    AMERICAN FINANCIAL NETWORK, INC. 1 6.63% $8,571
    ZILLOW HOME LOANS, LLC 1 6.13% $6,610
    AMERICAN FINANCIAL RESOURCES, INC. 1 7.00% $9,481
    AmeriHome Mortgage Company, LLC 1 6.63% $15,597
    AMERISAVE MORTGAGE CORPORATION 1 6.75% $17,624
    BANKWEST, INC. 1 6.25% $8,732
    Barrington Bank & Trust Company, N.A. 1 5.63% $11,714
    CARDINAL FINANCIAL 1 7.50% $10,379
    Carrington Mortgage Services, LLC 1 6.38% $16,173
    CU MORTGAGE DIRECT, LLC 1 6.63% $5,497
    Dacotah Bank 1 6.13% $13,568
    First Interstate Bank 1 6.25% $7,826
    FREEDOM MORTGAGE CORPORATION 1 6.25% $10,701
    GUARANTEED RATE, INC. 1 7.50% $12,820
    LOANDEPOT.COM, LLC 1 6.99% $14,545
    Mortgage Research Center, LLC 1 7.50% $3,546
    MOVEMENT MORTGAGE, LLC 1 6.75% $20,171

    The top Rapid City FHA lender as defined by loan originations is CMG MORTGAGE, INC., with 39 FHA loans originated. Their average total fees are $12,028, which is $3,311 higher than the next largest lender, Unify Home Lending Inc..

    The lowest fee Rapid City FHA lenders (with over 10 loans originated) are Gateway First Bank ($7,023), Unify Home Lending Inc. ($8,717), Plains Commerce Bank ($9,680), UNITED WHOLESALE MORTGAGE, LLC ($11,456) and QUICKEN LOANS, LLC ($11,719).

    The lowest rate Rapid City FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (6.19%), Plains Commerce Bank (6.41%), UNITED WHOLESALE MORTGAGE, LLC (6.46%), Gateway First Bank (6.49%) and Unify Home Lending Inc. (6.53%).

    Rapid City FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    RAPID CITY, SD MEADE 2022 $420,680 $538,650 $651,050 $809,150
    RAPID CITY, SD PENNINGTON 2022 $420,680 $538,650 $651,050 $809,150
    RAPID CITY, SD MEADE 2023 $472,030 $604,400 $730,525 $907,900
    RAPID CITY, SD PENNINGTON 2023 $472,030 $604,400 $730,525 $907,900

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Rapid City (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Price (YoY Change) Average Listing Price (YoY) MSA/US Median Price Ratio Active Listings
    2018-01-01 $242,400 (1.6%) $307,944 (0.2%) 0.90 666
    2018-02-01 $247,000 (3.0%) $315,156 (0.6%) 0.90 684
    2018-03-01 $255,000 (2.0%) $318,170 (0.6%) 0.89 699
    2018-04-01 $267,250 (6.5%) $326,370 (1.6%) 0.91 723
    2018-05-01 $265,925 (6.4%) $327,684 (2.5%) 0.89 803
    2018-06-01 $273,000 (10.0%) $336,305 (6.6%) 0.91 789
    2018-07-01 $269,000 (8.7%) $332,370 (6.5%) 0.90 791
    2018-08-01 $269,225 (10.2%) $336,052 (7.9%) 0.90 776
    2018-09-01 $263,900 (9.1%) $328,789 (6.8%) 0.89 799
    2018-10-01 $265,200 (11.2%) $330,357 (7.2%) 0.90 748
    2018-11-01 $269,900 (12.5%) $329,059 (6.3%) 0.91 689
    2018-12-01 $269,900 (12.5%) $324,496 (7.6%) 0.93 599
    2019-01-01 $269,225 (11.1%) $322,629 (4.8%) 0.93 565
    2019-02-01 $269,000 (8.9%) $320,678 (1.8%) 0.91 598
    2019-03-01 $269,900 (5.8%) $324,474 (2.0%) 0.88 628
    2019-04-01 $268,763 (0.6%) $326,239 (0.0%) 0.85 663
    2019-05-01 $259,900 (-2.3%) $322,148 (-1.7%) 0.81 738
    2019-06-01 $259,900 (-4.8%) $321,608 (-4.4%) 0.81 785
    2019-07-01 $259,950 (-3.4%) $330,464 (-0.6%) 0.81 780
    2019-08-01 $258,359 (-4.0%) $328,944 (-2.1%) 0.82 755
    2019-09-01 $256,048 (-3.0%) $325,673 (-1.0%) 0.82 718
    2019-10-01 $254,832 (-3.9%) $323,781 (-2.0%) 0.82 688
    2019-11-01 $259,900 (-3.7%) $325,282 (-1.2%) 0.85 661
    2019-12-01 $259,900 (-3.7%) $326,103 (0.5%) 0.87 569
    2020-01-01 $279,900 (4.0%) $384,214 (19.1%) 0.94 333
    2020-02-01 $292,498 (8.7%) $403,463 (25.8%) 0.96 331
    2020-03-01 $308,450 (14.3%) $437,327 (34.8%) 0.97 312
    2020-04-01 $301,950 (12.4%) $430,019 (31.8%) 0.95 358
    2020-05-01 $299,900 (15.4%) $426,334 (32.3%) 0.91 357
    2020-06-01 $314,450 (21.0%) $442,917 (37.7%) 0.93 328
    2020-07-01 $321,250 (23.6%) $458,337 (38.7%) 0.93 265
    2020-08-01 $299,000 (15.7%) $464,466 (41.2%) 0.86 237
    2020-09-01 $285,925 (11.7%) $465,663 (43.0%) 0.82 194
    2020-10-01 $281,000 (10.3%) $469,070 (44.9%) 0.81 174
    2020-11-01 $287,200 (10.5%) $466,541 (43.4%) 0.84 149
    2020-12-01 $268,675 (3.4%) $455,704 (39.7%) 0.80 131
    2021-01-01 $246,900 (-11.8%) $383,298 (-0.2%) 0.74 117
    2021-02-01 $246,800 (-15.6%) $412,638 (2.3%) 0.72 86
    2021-03-01 $335,550 (8.8%) $468,206 (7.1%) 0.95 85
    2021-04-01 $349,475 (15.7%) $457,106 (6.3%) 0.95 92
    2021-05-01 $335,000 (11.7%) $461,563 (8.3%) 0.89 92
    2021-06-01 $344,900 (9.7%) $474,087 (7.0%) 0.91 124
    2021-07-01 $344,900 (7.4%) $450,208 (-1.8%) 0.91 144
    2021-08-01 $336,400 (12.5%) $439,164 (-5.5%) 0.90 164
    2021-09-01 $352,400 (23.3%) $478,364 (2.7%) 0.94 174
    2021-10-01 $347,900 (23.8%) $490,237 (4.5%) 0.93 158
    2021-11-01 $354,900 (23.6%) $513,485 (10.1%) 0.95 144
    2021-12-01 $354,900 (32.1%) $546,212 (19.9%) 0.96 120
    2022-01-01 $359,900 (45.8%) $573,391 (49.6%) 0.97 107
    2022-02-01 $359,900 (45.8%) $589,127 (42.8%) 0.94 117
    2022-03-01 $374,950 (11.7%) $677,349 (44.7%) 0.94 128
    2022-04-01 $385,000 (10.2%) $608,777 (33.2%) 0.92 156
    2022-05-01 $389,900 (16.4%) $600,631 (30.1%) 0.89 121
    2022-06-01 $389,900 (13.1%) $551,939 (16.4%) 0.87 193
    2022-07-01 $402,400 (16.7%) $554,641 (23.2%) 0.91 217
    2022-08-01 $409,000 (21.6%) $544,631 (24.0%) 0.95 252
    2022-09-01 $399,900 (13.5%) $527,294 (10.2%) 0.93 268
    2022-10-01 $399,900 (15.0%) $503,658 (2.7%) 0.94 275
    2022-11-01 $429,675 (21.1%) $596,471 (16.2%) 1.03 345
    2022-12-01 $405,000 (14.1%) $521,098 (-4.6%) 1.00 247
    2023-01-01 $396,175 (10.1%) $506,473 (-11.7%) 0.98 226
    2023-02-01 $388,499 (8.0%) $507,711 (-13.8%) 0.94 206
    2023-03-01 $384,498 (2.6%) $512,384 (-24.4%) 0.91 143
    2023-04-01 $435,000 (13.0%) $561,686 (-7.7%) 1.01 154
    2023-05-01 $433,224 (11.1%) $553,858 (-7.8%) 0.98 200
    2023-06-01 $433,675 (11.2%) $576,372 (4.4%) 0.97 254
    2023-07-01 $429,900 (6.8%) $552,848 (-0.3%) 0.98 298
    2023-08-01 $414,950 (1.5%) $552,389 (1.4%) 0.95 324
    2023-09-01 $409,000 (2.3%) $550,748 (4.5%) 0.95 331
    2023-10-01 $421,300 (5.4%) $588,109 (16.8%) 0.99 360
    2023-11-01 $399,500 (-7.0%) $568,011 (-4.8%) 0.95 377
    2023-12-01 $398,000 (-1.7%) $573,466 (10.1%) 0.97 345
    2024-01-01 $385,000 (-2.8%) $576,774 (13.9%) 0.94 332
    2024-02-01 $381,000 (-1.9%) $563,761 (11.0%) 0.92 315
    2024-03-01 $395,000 (2.7%) $570,762 (11.4%) 0.93 327
    Rapid City's median listing price for 2024-03-01 was $395,000, a difference of $10,502 (2.7%) versus the prior year and $14,000 versus the prior month.

    Rapid City's median listing price comes in at 93% of the national average.

    Rapid City's average listing price for 2024-03-01 was $570,762, a difference of $58,378 (11.4%) versus the prior year and $7,001 versus the prior month.

    For the 2024-03-01 period, Rapid City had 327 MLS listings, a difference of 12 listings (4%) versus the prior month and 184 listings (129%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Rapid City (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 68 days 2,205 sqft
    2018-02-01 65 days 2,214 sqft
    2018-03-01 54 days 2,254 sqft
    2018-04-01 50 days 2,297 sqft
    2018-05-01 48 days 2,262 sqft
    2018-06-01 45 days 2,304 sqft
    2018-07-01 47 days 2,270 sqft
    2018-08-01 52 days 2,269 sqft
    2018-09-01 49 days 2,239 sqft
    2018-10-01 54 days 2,263 sqft
    2018-11-01 62 days 2,262 sqft
    2018-12-01 70 days 2,245 sqft
    2019-01-01 68 days 2,206 sqft
    2019-02-01 52 days 2,210 sqft
    2019-03-01 47 days 2,232 sqft
    2019-04-01 46 days 2,214 sqft
    2019-05-01 43 days 2,145 sqft
    2019-06-01 46 days 2,134 sqft
    2019-07-01 44 days 2,153 sqft
    2019-08-01 45 days 2,161 sqft
    2019-09-01 46 days 2,172 sqft
    2019-10-01 47 days 2,186 sqft
    2019-11-01 54 days 2,184 sqft
    2019-12-01 63 days 2,173 sqft
    2020-01-01 67 days 2,303 sqft
    2020-02-01 50 days 2,360 sqft
    2020-03-01 46 days 2,315 sqft
    2020-04-01 43 days 2,309 sqft
    2020-05-01 44 days 2,236 sqft
    2020-06-01 45 days 2,293 sqft
    2020-07-01 52 days 2,331 sqft
    2020-08-01 40 days 2,260 sqft
    2020-09-01 44 days 2,198 sqft
    2020-10-01 38 days 2,112 sqft
    2020-11-01 41 days 1,981 sqft
    2020-12-01 39 days 1,918 sqft
    2021-01-01 55 days 1,824 sqft
    2021-02-01 48 days 1,805 sqft
    2021-03-01 20 days 2,028 sqft
    2021-04-01 15 days 2,066 sqft
    2021-05-01 8 days 2,090 sqft
    2021-06-01 12 days 2,093 sqft
    2021-07-01 17 days 1,827 sqft
    2021-08-01 25 days 1,683 sqft
    2021-09-01 26 days 1,828 sqft
    2021-10-01 33 days 1,764 sqft
    2021-11-01 37 days 1,696 sqft
    2021-12-01 59 days 1,816 sqft
    2022-01-01 61 days 1,920 sqft
    2022-02-01 34 days 1,881 sqft
    2022-03-01 39 days 1,923 sqft
    2022-04-01 30 days 1,920 sqft
    2022-05-01 23 days 1,931 sqft
    2022-06-01 25 days 1,928 sqft
    2022-07-01 32 days 2,000 sqft
    2022-08-01 35 days 2,073 sqft
    2022-09-01 32 days 1,997 sqft
    2022-10-01 33 days 1,968 sqft
    2022-11-01 53 days 1,969 sqft
    2022-12-01 63 days 1,978 sqft
    2023-01-01 59 days 1,958 sqft
    2023-02-01 51 days 1,940 sqft
    2023-03-01 49 days 1,869 sqft
    2023-04-01 47 days 2,014 sqft
    2023-05-01 29 days 1,941 sqft
    2023-06-01 31 days 1,994 sqft
    2023-07-01 36 days 2,012 sqft
    2023-08-01 39 days 1,966 sqft
    2023-09-01 43 days 1,979 sqft
    2023-10-01 39 days 2,003 sqft
    2023-11-01 44 days 1,941 sqft
    2023-12-01 60 days 1,915 sqft
    2024-01-01 71 days 1,895 sqft
    2024-02-01 52 days 1,848 sqft
    2024-03-01 64 days 1,846 sqft
    Rapid City's median listing age (time on market) for 2024-03-01 was 64 days. This is 30% longer than the same period one year ago.

    Rapid City's median square footage for active listings during the 2024-03-01 period was 1,846 sqft. One year prior, the average listing was 1,869 sqft.

    FHA Loan Requirements

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money may be gifted by a family member. (Traditional mortgages do not permit gifted down payments)
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers’ debt to income ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent.
  • Bborrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit.
  • The purchased property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).