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 6.43% for the week of 2024-07-19, compared to the national average (all FHA variants) of 6.59% for the same period.

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

    The average rate for the prior week (2024-07-12) was 6.58% and one month ago for the week of 2024-06-14, the average rate was 6.63%.

    The average rate one year ago was 6.62%.

    For refis of the same type during the week of 2024-07-19, the average rate was 6.58%.

    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

    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).