Sioux Falls FHA Loan Rates, Closing Costs & Stats

SIOUX FALLS, 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.

    Sioux Falls's 48 lenders originated 781 FHA loans during 2023. The total origination value was $197,765,000, with an average FHA loan value of $253,220.

    Sioux Falls FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Sioux Falls averaged 6% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

    Sioux Falls's average FHA mortgage closing costs are $7,061.

    The average rate for the prior week (2024-11-01) was 5.98% and one month ago for the week of 2024-10-04, the average rate was 5.7%.

    The average rate one year ago was 7.04%.

    For refis of the same type during the week of 2024-11-08, the average rate was 6.52%.

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

    Sioux Falls 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 Sioux Falls level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    Plains Commerce Bank 248 6.39% $8,495
    First PREMIER Bank 82 6.38% $7,645
    CROSSCOUNTRY MORTGAGE, LLC 48 6.79% $8,902
    First Bank & Trust 39 6.43% $8,220
    QUICKEN LOANS, LLC 37 6.26% $11,275
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 28 6.91% $8,980
    First National Bank of Omaha 25 6.24% $7,947
    Reliabank Dakota 19 6.70% $7,670
    SIOUX FALLS 19 6.06% $7,607
    CU MORTGAGE DIRECT, LLC 12 6.27% $8,415
    LOANDEPOT.COM, LLC 11 6.35% $12,381
    First International Bank & Trust 11 6.32% $8,230
    First Dakota National Bank 10 6.09% $7,858
    U.S. Bank 8 6.39% $6,548
    GUARANTEED RATE, INC. 8 6.66% $10,344
    PRIMARY RESIDENTIAL MORTGAGE, INC. 7 6.75% $12,589
    PENNYMAC LOAN SERVICES, LLC 5 5.95% $12,501
    NEWREZ LLC 5 6.60% $10,887
    American Bank & Trust 5 6.30% $10,441
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 5 6.20% $4,963
    FIRST COMMUNITY MORTGAGE, INC. 4 6.88% $9,657
    AMERISAVE MORTGAGE CORPORATION 4 5.84% $12,627
    UNITED WHOLESALE MORTGAGE, LLC 4 6.84% $8,604
    Flagstar Bank, FSB 4 7.19% $10,531
    Flanagan State Bank 4 6.88% $13,746
    Wells Fargo Bank 3 7.17% $11,401
    Carrington Mortgage Services, LLC 3 6.00% $15,288
    CORTRUST MORTGAGE, INC. 3 6.04% $6,022
    DAS Acquisition Company, LLC 3 6.38% $8,073
    Mr. Cooper ( Nationstar Mortgage ) 3 6.08% $16,379
    POLARIS HOME FUNDING CORP. 3 6.54% $11,253
    FREEDOM MORTGAGE CORPORATION 2 6.75% $16,154
    LAKEVIEW LOAN SERVICING, LLC 2 6.00% $10,911
    MUTUAL OF OMAHA MORTGAGE, INC. 2 6.00% $14,592
    PLANET HOME LENDING, LLC 1 5.38% $5,023
    AMERICAN FINANCING CORPORATION 1 6.50% $15,079
    First Federal Bank 1 5.13% $15,442
    Prosperity Home Mortgage, LLC 1 6.25% $9,028
    Dacotah Bank 1 6.50% $6,568
    Citizens Bank 1 6.75% $8,126
    BROKER SOLUTIONS, INC. 1 6.75% $12,287
    The Federal Savings Bank 1 5.88% $19,615
    TOTAL MORTGAGE SERVICES, LLC 1 6.75% $8,076
    Barrington Bank & Trust Company, N.A. 1 5.75% $9,396
    Arvest Bank 1 6.50% $7,514
    VILLAGE CAPITAL MORTGAGE 1 6.38% $16,030
    Gateway First Bank 1 7.50% $10,578
    First National Bank 1 6.50% $5,111

    The top Sioux Falls FHA lender as defined by loan originations is Plains Commerce Bank, with 248 FHA loans originated. Their average total fees are $8,495, which is $850 higher than the next largest lender, First PREMIER Bank.

    The lowest fee Sioux Falls FHA lenders (with over 10 loans originated) are SIOUX FALLS ($7,607), First PREMIER Bank ($7,645), Reliabank Dakota ($7,670), First Dakota National Bank ($7,858) and First National Bank of Omaha ($7,947).

    The lowest rate Sioux Falls FHA lenders (with over 10 loans originated) are SIOUX FALLS (6.06%), First Dakota National Bank (6.09%), First National Bank of Omaha (6.24%), QUICKEN LOANS, LLC (6.26%) and CU MORTGAGE DIRECT, LLC (6.27%).

    Sioux Falls FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    SIOUX FALLS, SD LINCOLN 2022 $420,680 $538,650 $651,050 $809,150
    SIOUX FALLS, SD MCCOOK 2022 $420,680 $538,650 $651,050 $809,150
    SIOUX FALLS, SD MINNEHAHA 2022 $420,680 $538,650 $651,050 $809,150
    SIOUX FALLS, SD TURNER 2022 $420,680 $538,650 $651,050 $809,150
    SIOUX FALLS, SD LINCOLN 2023 $472,030 $604,400 $730,525 $907,900
    SIOUX FALLS, SD MCCOOK 2023 $472,030 $604,400 $730,525 $907,900
    SIOUX FALLS, SD MINNEHAHA 2023 $472,030 $604,400 $730,525 $907,900
    SIOUX FALLS, SD TURNER 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).