Rapid City FHA Loan Rates, Closing Costs & Stats

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 43 lenders originated 332 FHA loans during 2022. The total origination value was $85,220,000, with an average FHA loan value of $256,687.

Rapid City FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Rapid City averaged -0.41% for the week of 2024-02-23, compared to the national average (all FHA variants) of 0% for the same period.

Rapid City's average FHA mortgage closing costs are $7,167.

The average rate for the prior week (2024-02-16) was 6.33% and one month ago for the week of 2024-01-19, the average rate was 5.77%.

The average rate one year ago was 5.63%.

For refis of the same type during the week of 2024-02-23, the average rate was -1.4%.

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 2022 Avg. 30yFix Rate 2022 Avg. Closing Costs
Gateway First Bank 52 5.27% $6,854
CMG MORTGAGE, INC. 44 5.09% $10,542
HOMESTAR FINANCIAL CORPORATION 40 5.14% $8,400
Unify Home Lending Inc. 25 4.98% $8,729
Plains Commerce Bank 20 5.12% $10,125
QUICKEN LOANS, LLC 17 4.91% $10,110
UNITED WHOLESALE MORTGAGE, LLC 17 4.52% $9,483
Lend Smart Mortgage, LLC 11 4.55% $12,062
OPEN MORTGAGE, LLC 8 5.00% $10,131
BLACK HILLS FEDERAL CREDIT UNION 5 4.78% $6,488
PENNYMAC LOAN SERVICES, LLC 5 3.95% $10,048
First National Bank 5 5.48% $8,126
LAKEVIEW LOAN SERVICING, LLC 4 4.56% $10,377
LOANDEPOT.COM, LLC 4 4.78% $7,862
DAS Acquisition Company, LLC 3 5.92% $10,457
CARDINAL FINANCIAL 3 4.37% $12,120
BROKER SOLUTIONS, INC. 3 4.13% $8,607
Wells Fargo Bank 2 4.00% $9,072
AMERISAVE MORTGAGE CORPORATION 2 4.75% $9,399
BANKWEST, INC. 2 3.38% $13,522
First Interstate Bank 2 3.75% $9,456
Flagstar Bank, FSB 2 4.94% $12,766
FREEDOM MORTGAGE CORPORATION 2 5.69% $8,546
HOME POINT FINANCIAL CORPORATION 2 3.50% $9,643
NEWREZ LLC 2 3.81% $7,945
PLANET HOME LENDING, LLC 2 4.25% $12,739
Servion, Inc. 2 4.00% $10,135
Dacotah Bank 1 5.88% $8,379
MOVEMENT MORTGAGE, LLC 1 6.25% $18,573
Mr. Cooper ( Nationstar Mortgage ) 1 2.88% $13,463
AXIA FINANCIAL, LLC 1 6.63% $14,040
North American Savings Bank, F.S.B. 1 6.63% $8,568
Northpointe Bank 1 5.75% $14,463
CU MORTGAGE DIRECT, LLC 1 3.50% $6,215
Century Mortgage Company DBA Century Lending Company 1 4.25% $13,779
Carrington Mortgage Services, LLC 1 5.75% $12,357
AMERICAN FINANCING CORPORATION 1 4.38% $11,608
BOKF 1 5.63% $10,338
AMERICAN FINANCIAL RESOURCES, INC. 1 4.00% $5,885
The Federal Savings Bank 1 4.25% $14,455
First Internet Bank of Indiana 1 4.13% $6,942
FINANCE OF AMERICA MORTGAGE LLC 1 3.00% $7,117
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 1 5.63% $8,453

The top Rapid City FHA lender as defined by loan originations is Gateway First Bank, with 52 FHA loans originated. Their average total fees are $6,854, which is $3,689 lower than the next largest lender, CMG MORTGAGE, INC..

The lowest fee Rapid City FHA lenders (with over 10 loans originated) are Gateway First Bank ($6,854), HOMESTAR FINANCIAL CORPORATION ($8,400), Unify Home Lending Inc. ($8,729), UNITED WHOLESALE MORTGAGE, LLC ($9,483) and QUICKEN LOANS, LLC ($10,110).

The lowest rate Rapid City FHA lenders (with over 10 loans originated) are UNITED WHOLESALE MORTGAGE, LLC (4.52%), Lend Smart Mortgage, LLC (4.55%), QUICKEN LOANS, LLC (4.91%), Unify Home Lending Inc. (4.98%) and CMG MORTGAGE, INC. (5.09%).

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 $247,400 (3.5%) $316,348 (0.2%) 0.92 727
2018-02-01 $249,950 (4.2%) $323,645 (0.6%) 0.91 745
2018-03-01 $258,950 (3.6%) $324,930 (0.6%) 0.91 771
2018-04-01 $268,450 (5.8%) $331,579 (1.7%) 0.91 797
2018-05-01 $267,175 (6.3%) $331,877 (2.6%) 0.89 882
2018-06-01 $274,500 (10.0%) $338,609 (6.7%) 0.92 879
2018-07-01 $269,975 (8.7%) $336,688 (6.6%) 0.90 879
2018-08-01 $269,000 (9.6%) $339,744 (8.0%) 0.90 865
2018-09-01 $264,700 (8.0%) $332,913 (6.9%) 0.89 885
2018-10-01 $268,789 (12.0%) $335,540 (7.1%) 0.91 822
2018-11-01 $269,900 (10.0%) $332,472 (6.3%) 0.91 758
2018-12-01 $269,900 (12.5%) $326,655 (7.4%) 0.93 660
2019-01-01 $268,500 (8.5%) $324,513 (4.5%) 0.93 628
2019-02-01 $269,000 (7.6%) $323,877 (1.5%) 0.91 658
2019-03-01 $269,900 (4.2%) $328,120 (1.8%) 0.88 691
2019-04-01 $269,900 (0.5%) $330,867 (-0.2%) 0.86 730
2019-05-01 $262,400 (-1.8%) $328,181 (-1.9%) 0.82 812
2019-06-01 $259,900 (-5.3%) $327,099 (-4.5%) 0.81 869
2019-07-01 $265,200 (-1.8%) $337,828 (-0.7%) 0.83 880
2019-08-01 $263,336 (-2.1%) $338,569 (-2.2%) 0.83 854
2019-09-01 $258,591 (-2.3%) $335,550 (-1.0%) 0.83 811
2019-10-01 $257,927 (-4.0%) $334,807 (-1.9%) 0.83 769
2019-11-01 $259,900 (-3.7%) $341,374 (-1.1%) 0.85 732
2019-12-01 $259,900 (-3.7%) $342,809 (0.6%) 0.87 630
2020-01-01 $285,425 (6.3%) $403,416 (19.4%) 0.95 382
2020-02-01 $299,900 (11.5%) $420,505 (25.8%) 0.98 387
2020-03-01 $319,971 (18.6%) $462,149 (35.1%) 1.00 373
2020-04-01 $314,200 (16.4%) $456,473 (32.0%) 0.98 422
2020-05-01 $315,000 (20.1%) $448,138 (32.6%) 0.96 413
2020-06-01 $326,700 (25.7%) $465,552 (37.9%) 0.96 392
2020-07-01 $334,700 (26.2%) $476,200 (38.9%) 0.97 320
2020-08-01 $315,000 (19.6%) $490,643 (41.4%) 0.90 279
2020-09-01 $299,900 (16.0%) $476,894 (43.2%) 0.86 229
2020-10-01 $289,900 (12.4%) $486,113 (45.2%) 0.83 202
2020-11-01 $290,450 (11.8%) $484,271 (43.7%) 0.85 168
2020-12-01 $274,900 (5.8%) $475,969 (40.0%) 0.82 147
2021-01-01 $249,900 (-12.5%) $396,255 (-0.2%) 0.75 130
2021-02-01 $252,450 (-15.8%) $437,683 (2.5%) 0.73 98
2021-03-01 $340,050 (6.3%) $485,094 (7.0%) 0.96 101
2021-04-01 $351,975 (12.0%) $473,303 (6.0%) 0.95 105
2021-05-01 $345,000 (9.5%) $487,902 (8.0%) 0.92 109
2021-06-01 $356,675 (9.2%) $501,612 (7.0%) 0.94 141
2021-07-01 $374,950 (12.0%) $497,583 (-1.9%) 0.99 168
2021-08-01 $348,650 (10.7%) $466,077 (-5.6%) 0.93 183
2021-09-01 $366,675 (22.3%) $501,269 (2.6%) 0.98 190
2021-10-01 $359,900 (24.2%) $509,395 (4.4%) 0.96 174
2021-11-01 $364,900 (25.6%) $541,728 (9.9%) 0.98 163
2021-12-01 $362,400 (31.8%) $578,812 (19.7%) 0.98 134
2022-01-01 $364,900 (46.0%) $603,386 (50.3%) 0.99 122
2022-02-01 $364,675 (44.5%) $606,401 (42.0%) 0.95 129
2022-03-01 $396,750 (16.7%) $685,447 (44.2%) 0.99 146
2022-04-01 $403,450 (14.6%) $684,977 (33.1%) 0.96 189
2022-05-01 $428,750 (24.3%) $691,022 (29.8%) 0.98 147
2022-06-01 $403,675 (13.2%) $620,839 (15.9%) 0.90 223
2022-07-01 $425,000 (13.4%) $620,969 (22.9%) 0.96 254
2022-08-01 $427,000 (22.5%) $608,275 (23.8%) 0.99 286
2022-09-01 $422,475 (15.2%) $585,035 (10.2%) 0.99 301
2022-10-01 $425,000 (18.1%) $569,013 (4.0%) 1.00 309
2022-11-01 $449,450 (23.2%) $645,214 (17.1%) 1.08 378
2022-12-01 $428,450 (18.2%) $601,732 (-3.5%) 1.06 275
2023-01-01 $414,900 (13.7%) $584,365 (-11.1%) 1.03 252
2023-02-01 $404,950 (11.0%) $586,435 (-12.2%) 0.98 229
2023-03-01 $404,450 (1.9%) $591,095 (-24.2%) 0.95 164
2023-04-01 $452,500 (12.2%) $629,036 (-8.6%) 1.05 179
2023-05-01 $457,000 (6.6%) $605,810 (-7.9%) 1.04 229
2023-06-01 $464,950 (15.2%) $615,839 (4.7%) 1.04 294
2023-07-01 $454,900 (7.0%) $595,006 (0.0%) 1.03 344
2023-08-01 $439,900 (3.0%) $596,714 (1.7%) 1.01 370
2023-09-01 $432,448 (2.4%) $592,849 (4.5%) 1.01 376
2023-10-01 $438,450 (3.2%) $623,413 (15.3%) 1.03 410
2023-11-01 $419,500 (-6.7%) $602,173 (-5.5%) 1.00 429
2023-12-01 $419,000 (-2.2%) $607,723 (0.0%) 1.02 384
Rapid City's median listing price for 2023-12-01 was $419,000, a difference of $-9,450 (-2.2%) versus the prior year and $-500 versus the prior month.

Rapid City's median listing price comes in at 102% of the national average.

Rapid City's average listing price for 2023-12-01 was $607,723, a difference of $5,991 (0.0%) versus the prior year and $5,550 versus the prior month.

For the 2023-12-01 period, Rapid City had 384 MLS listings, a difference of -45 listings (-10%) versus the prior month and 109 listings (40%) 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 72 days 2,205 sqft
2018-02-01 68 days 2,220 sqft
2018-03-01 54 days 2,260 sqft
2018-04-01 51 days 2,285 sqft
2018-05-01 49 days 2,258 sqft
2018-06-01 46 days 2,288 sqft
2018-07-01 48 days 2,250 sqft
2018-08-01 54 days 2,240 sqft
2018-09-01 52 days 2,218 sqft
2018-10-01 56 days 2,248 sqft
2018-11-01 63 days 2,244 sqft
2018-12-01 73 days 2,236 sqft
2019-01-01 72 days 2,202 sqft
2019-02-01 58 days 2,207 sqft
2019-03-01 50 days 2,230 sqft
2019-04-01 48 days 2,212 sqft
2019-05-01 44 days 2,145 sqft
2019-06-01 47 days 2,121 sqft
2019-07-01 45 days 2,143 sqft
2019-08-01 47 days 2,150 sqft
2019-09-01 50 days 2,156 sqft
2019-10-01 51 days 2,172 sqft
2019-11-01 55 days 2,182 sqft
2019-12-01 67 days 2,169 sqft
2020-01-01 72 days 2,318 sqft
2020-02-01 53 days 2,360 sqft
2020-03-01 48 days 2,332 sqft
2020-04-01 46 days 2,325 sqft
2020-05-01 50 days 2,280 sqft
2020-06-01 48 days 2,297 sqft
2020-07-01 53 days 2,329 sqft
2020-08-01 51 days 2,236 sqft
2020-09-01 45 days 2,225 sqft
2020-10-01 40 days 2,136 sqft
2020-11-01 44 days 1,988 sqft
2020-12-01 43 days 1,920 sqft
2021-01-01 56 days 1,840 sqft
2021-02-01 47 days 1,881 sqft
2021-03-01 21 days 2,139 sqft
2021-04-01 17 days 2,129 sqft
2021-05-01 10 days 2,122 sqft
2021-06-01 14 days 2,123 sqft
2021-07-01 17 days 1,970 sqft
2021-08-01 26 days 1,730 sqft
2021-09-01 28 days 1,912 sqft
2021-10-01 33 days 1,812 sqft
2021-11-01 41 days 1,806 sqft
2021-12-01 60 days 1,872 sqft
2022-01-01 66 days 1,920 sqft
2022-02-01 36 days 1,925 sqft
2022-03-01 38 days 1,920 sqft
2022-04-01 27 days 1,929 sqft
2022-05-01 26 days 1,973 sqft
2022-06-01 25 days 1,962 sqft
2022-07-01 32 days 2,012 sqft
2022-08-01 37 days 2,082 sqft
2022-09-01 36 days 2,029 sqft
2022-10-01 36 days 2,000 sqft
2022-11-01 54 days 2,001 sqft
2022-12-01 65 days 2,013 sqft
2023-01-01 66 days 2,006 sqft
2023-02-01 54 days 1,984 sqft
2023-03-01 52 days 1,953 sqft
2023-04-01 47 days 1,998 sqft
2023-05-01 30 days 1,933 sqft
2023-06-01 33 days 2,031 sqft
2023-07-01 36 days 2,033 sqft
2023-08-01 42 days 1,992 sqft
2023-09-01 44 days 1,994 sqft
2023-10-01 39 days 2,003 sqft
2023-11-01 46 days 1,948 sqft
2023-12-01 65 days 1,920 sqft
Rapid City's median listing age (time on market) for 2023-12-01 was 65 days. This is 0% longer than the same period one year ago.

Rapid City's median square footage for active listings during the 2023-12-01 period was 1,920 sqft. One year prior, the average listing was 2,013 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).