Rapid City FHA Loans

RAPID CITY, SD

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 45 lenders originated 440 FHA loans during 2021. The total origination value was $98,140,000, with an average FHA loan value of $223,045.

Rapid City FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Rapid City averaged 5.06% for the week of 2022-05-13, compared to the national average (all FHA variants) of 5.361% for the same period.

The average rate for the prior week (2022-05-06) was 4.99% and one month ago for the week of 2022-04-08, the average rate was 4.55%.

The average rate one year ago was 2.96%.

For refis of the same type during the week of 2022-05-13, the average rate was 4.93%.

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 and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Rapid City level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
Gateway First Bank 58 3.20% $6,393
CMG MORTGAGE, INC. 50 3.00% $9,132
HOMESTAR FINANCIAL CORPORATION 39 2.97% $7,393
Unify Home Lending Inc. 32 3.05% $6,303
QUICKEN LOANS, LLC 27 2.65% $7,274
Lend Smart Mortgage, LLC 24 2.85% $9,566
OPEN MORTGAGE, LLC 24 2.92% $8,470
UNITED WHOLESALE MORTGAGE, LLC 17 2.80% $6,784
LAKEVIEW LOAN SERVICING, LLC 16 2.98% $5,054
Plains Commerce Bank 12 2.92% $7,021
FREEDOM MORTGAGE CORPORATION 11 2.89% $4,222
DAS Acquisition Company, LLC 10 3.31% $7,826
BANKWEST, INC. 6 2.81% $7,253
NEWREZ LLC 5 2.73% $4,447
First National Bank 5 3.00% $7,731
BAY EQUITY LLC 4 3.31% $9,753
CALIBER HOME LOANS, INC. 4 2.75% $5,188
Mr. Cooper ( Nationstar Mortgage ) 4 3.34% $3,201
PENNYMAC LOAN SERVICES, LLC 3 3.12% $5,408
HOME POINT FINANCIAL CORPORATION 3 2.42% $5,614
Carrington Mortgage Services, LLC 3 3.54% $5,207
LOANDEPOT.COM, LLC 2 3.31% $9,138
Dacotah Bank 2 3.19% $5,092
PLANET HOME LENDING, LLC 2 2.63% $4,847
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 2 3.00% $7,409
Servion, Inc. 2 3.06% $10,287
Wells Fargo Bank 1 3.25% $6,625
OCEANSIDE MORTGAGE COMPANY 1 2.75% $2,623
BROKER SOLUTIONS, INC. 1 2.75% $6,447
AMCAP MORTGAGE, LTD. 1 4.00% $6,610
PRIMELENDING, A PLAINSCAPITAL COMPANY 1 3.50% $7,285
Barrington Bank & Trust Company, N.A. 1 2.50% $13,676
Reliabank Dakota 1 3.88% $8,078
ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 2.38% $11,421
UNITED SECURITY FINANCIAL CORP 1 2.88% $8,544
AMERISAVE MORTGAGE CORPORATION 1 2.38% $9,100
Flagstar Bank, FSB 1 2.60% $6,474
First Interstate Bank 1 2.63% $9,782
First International Bank & Trust 1 2.63% $5,930
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 1 3.13% $10,644
Great Western Bank 1 3.13% $6,306
HOMEBRIDGE FINANCIAL SERVICES, INC. 1 2.25% $6,894
EVERETT FINANCIAL, INC. 1 2.88% $6,235
InterContinental Capital Group, Inc 1 3.00% $9,996
MID AMERICA MORTGAGE, INC. 1 3.13% $4,233

The top Rapid City FHA lender as defined by loan originations is Gateway First Bank, with 58 FHA loans originated. Their average total fees are $6,393, which is $2,739 lower than the next largest lender, CMG MORTGAGE, INC..

The lowest fee Rapid City FHA lenders (with over 10 loans originated) are FREEDOM MORTGAGE CORPORATION ($4,222), LAKEVIEW LOAN SERVICING, LLC ($5,054), Unify Home Lending Inc. ($6,303), Gateway First Bank ($6,393) and UNITED WHOLESALE MORTGAGE, LLC ($6,784).

The lowest rate Rapid City FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (2.65%), UNITED WHOLESALE MORTGAGE, LLC (2.80%), Lend Smart Mortgage, LLC (2.85%), FREEDOM MORTGAGE CORPORATION (2.89%) and OPEN MORTGAGE, LLC (2.92%).

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

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 $249,900 (4.6%) $325,822 (4.2%) 0.92 816
2018-02-01 $259,400 (8.1%) $330,518 (4.5%) 0.94 835
2018-03-01 $265,000 (6.0%) $334,546 (4.1%) 0.92 855
2018-04-01 $279,900 (8.5%) $342,415 (4.2%) 0.94 881
2018-05-01 $279,450 (9.7%) $342,693 (5.3%) 0.93 969
2018-06-01 $282,000 (12.9%) $348,906 (7.5%) 0.94 985
2018-07-01 $279,900 (12.0%) $349,197 (10.8%) 0.93 987
2018-08-01 $280,950 (12.4%) $352,824 (9.4%) 0.94 987
2018-09-01 $273,000 (9.2%) $345,225 (8.7%) 0.91 1,017
2018-10-01 $275,000 (11.4%) $346,381 (7.4%) 0.92 940
2018-11-01 $276,250 (10.5%) $345,957 (7.0%) 0.93 870
2018-12-01 $272,900 (11.4%) $338,043 (5.7%) 0.93 751
2019-01-01 $269,900 (8.0%) $333,698 (2.4%) 0.93 706
2019-02-01 $269,900 (4.1%) $331,934 (0.4%) 0.90 740
2019-03-01 $272,043 (2.7%) $338,595 (1.2%) 0.89 778
2019-04-01 $273,343 (-2.3%) $342,599 (0.1%) 0.86 820
2019-05-01 $269,000 (-3.7%) $340,315 (-0.7%) 0.83 898
2019-06-01 $269,900 (-4.3%) $342,897 (-1.7%) 0.83 970
2019-07-01 $273,450 (-2.3%) $354,758 (1.6%) 0.85 997
2019-08-01 $271,100 (-3.5%) $357,842 (1.4%) 0.85 956
2019-09-01 $269,900 (-1.1%) $357,330 (3.5%) 0.86 888
2019-10-01 $268,200 (-2.5%) $351,057 (1.4%) 0.86 879
2019-11-01 $269,990 (-2.3%) $363,292 (5.0%) 0.87 829
2019-12-01 $269,950 (-1.1%) $369,878 (9.4%) 0.90 718
2020-01-01 $300,762 (11.4%) $435,801 (30.6%) 1.00 468
2020-02-01 $319,900 (18.5%) $454,112 (36.8%) 1.03 482
2020-03-01 $364,450 (34.0%) $494,295 (46.0%) 1.14 462
2020-04-01 $339,900 (24.4%) $482,640 (40.9%) 1.06 520
2020-05-01 $349,900 (30.1%) $473,880 (39.3%) 1.06 513
2020-06-01 $358,000 (32.6%) $496,942 (44.9%) 1.05 499
2020-07-01 $364,450 (33.3%) $508,074 (43.2%) 1.04 413
2020-08-01 $325,000 (19.9%) $505,632 (41.3%) 0.93 351
2020-09-01 $329,000 (21.9%) $505,928 (41.6%) 0.94 288
2020-10-01 $325,000 (21.2%) $522,189 (48.8%) 0.93 251
2020-11-01 $329,900 (22.2%) $544,035 (49.8%) 0.94 197
2020-12-01 $314,198 (16.4%) $527,928 (42.7%) 0.92 176
2021-01-01 $239,900 (-20.2%) $399,064 (-8.4%) 0.71 167
2021-02-01 $234,500 (-26.7%) $430,919 (-5.1%) 0.67 131
2021-03-01 $299,000 (-18.0%) $461,281 (-6.7%) 0.84 129
2021-04-01 $347,400 (2.2%) $470,553 (-2.5%) 0.93 124
2021-05-01 $359,900 (2.9%) $512,341 (8.1%) 0.95 123
2021-06-01 $362,000 (1.1%) $509,079 (2.4%) 0.94 167
2021-07-01 $379,900 (4.2%) $498,573 (-1.9%) 0.99 194
2021-08-01 $372,400 (14.6%) $475,665 (-5.9%) 0.98 206
2021-09-01 $379,500 (15.4%) $514,683 (1.7%) 1.00 208
2021-10-01 $380,000 (16.9%) $523,563 (0.3%) 1.00 206
2021-11-01 $369,950 (12.1%) $557,177 (2.4%) 0.98 182
2021-12-01 $379,250 (20.7%) $577,517 (9.4%) 1.01 158
2022-01-01 $417,770 (74.1%) $607,133 (52.1%) 1.11 153
2022-02-01 $402,750 (71.8%) $632,605 (46.8%) 1.03 154
2022-03-01 $436,988 (46.2%) $683,931 (48.3%) 1.08 153
2022-04-01 $428,000 (23.2%) $650,940 (38.3%) 1.01 210
Rapid City's median listing price for 2022-04-01 was $428,000, a difference of $80,600 (23.2%) versus the prior year and $-8,988 versus the prior month.

Rapid City's median listing price comes in at 101% of the national average.

Rapid City's average listing price for 2022-04-01 was $650,940, a difference of $180,387 (38.3%) versus the prior year and $-32,991 versus the prior month.

For the 2022-04-01 period, Rapid City had 210 MLS listings, a difference of 57 listings (37%) versus the prior month and 86 listings (69%) 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 74 days 2,230 sqft
2018-02-01 72 days 2,264 sqft
2018-03-01 58 days 2,288 sqft
2018-04-01 54 days 2,322 sqft
2018-05-01 51 days 2,302 sqft
2018-06-01 47 days 2,318 sqft
2018-07-01 52 days 2,289 sqft
2018-08-01 54 days 2,291 sqft
2018-09-01 53 days 2,258 sqft
2018-10-01 60 days 2,292 sqft
2018-11-01 66 days 2,280 sqft
2018-12-01 75 days 2,245 sqft
2019-01-01 76 days 2,212 sqft
2019-02-01 62 days 2,230 sqft
2019-03-01 57 days 2,245 sqft
2019-04-01 48 days 2,238 sqft
2019-05-01 45 days 2,183 sqft
2019-06-01 49 days 2,166 sqft
2019-07-01 44 days 2,184 sqft
2019-08-01 54 days 2,183 sqft
2019-09-01 55 days 2,181 sqft
2019-10-01 53 days 2,181 sqft
2019-11-01 59 days 2,214 sqft
2019-12-01 72 days 2,192 sqft
2020-01-01 76 days 2,349 sqft
2020-02-01 65 days 2,402 sqft
2020-03-01 49 days 2,381 sqft
2020-04-01 47 days 2,375 sqft
2020-05-01 54 days 2,336 sqft
2020-06-01 55 days 2,340 sqft
2020-07-01 59 days 2,358 sqft
2020-08-01 58 days 2,284 sqft
2020-09-01 56 days 2,256 sqft
2020-10-01 45 days 2,181 sqft
2020-11-01 47 days 2,122 sqft
2020-12-01 43 days 2,009 sqft
2021-01-01 22 days 1,808 sqft
2021-02-01 39 days 1,773 sqft
2021-03-01 47 days 1,950 sqft
2021-04-01 22 days 2,086 sqft
2021-05-01 15 days 2,216 sqft
2021-06-01 16 days 2,198 sqft
2021-07-01 17 days 1,986 sqft
2021-08-01 27 days 1,805 sqft
2021-09-01 28 days 1,952 sqft
2021-10-01 32 days 1,904 sqft
2021-11-01 39 days 1,852 sqft
2021-12-01 44 days 1,848 sqft
2022-01-01 48 days 1,920 sqft
2022-02-01 36 days 1,945 sqft
2022-03-01 30 days 2,014 sqft
2022-04-01 25 days 2,008 sqft
Rapid City's median listing age (time on market) for 2022-04-01 was 25 days. This is 14% longer than the same period one year ago.

Rapid City's median square footage for active listings during the 2022-04-01 period was 2,008 sqft. One year prior, the average listing was 2,086 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).