Watertown FHA Loan Rates, Closing Costs & Stats

Watertown, 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.

Watertown's 14 lenders originated 53 FHA loans during 2023. The total origination value was $11,185,000, with an average FHA loan value of $211,038.

Watertown FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Watertown averaged 6.69% for the week of 2024-03-22, compared to the national average (all FHA variants) of 6.696% for the same period.

Watertown's average FHA mortgage closing costs are $6,546.

The average rate for the prior week (2024-03-15) was 6.6% and one month ago for the week of 2024-02-16, the average rate was 6.33%.

The average rate one year ago was 6.32%.

For refis of the same type during the week of 2024-03-22, the average rate was 6.8%.

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

Watertown 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 Watertown level.

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 12 6.85% $9,046
First PREMIER Bank 11 6.31% $7,273
Plains Commerce Bank 7 6.80% $6,456
QUICKEN LOANS, LLC 6 5.93% $10,750
American Bank & Trust 4 6.00% $6,885
First Bank & Trust 3 5.67% $6,347
Reliabank Dakota 2 6.63% $6,684
Mr. Cooper ( Nationstar Mortgage ) 1 5.75% $11,185
PENNYMAC LOAN SERVICES, LLC 1 6.38% $13,362
BROKER SOLUTIONS, INC. 1 6.75% $8,994
AMERISAVE MORTGAGE CORPORATION 1 5.63% $15,252
Dacotah Bank 1 6.25% $6,493
UNITED WHOLESALE MORTGAGE, LLC 1 7.12% $8,244
CROSSCOUNTRY MORTGAGE, LLC 1 7.25% $7,023

The top Watertown FHA lender as defined by loan originations is FAIRWAY INDEPENDENT MORTGAGE CORPORATION, with 12 FHA loans originated. Their average total fees are $9,046, which is $1,773 higher than the next largest lender, First PREMIER Bank.

The lowest fee Watertown FHA lenders (with over 10 loans originated) are First PREMIER Bank ($7,273), FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($9,046), .

The lowest rate Watertown FHA lenders (with over 10 loans originated) are First PREMIER Bank (6.31%), FAIRWAY INDEPENDENT MORTGAGE CORPORATION (6.85%), .

Watertown FHA Loan Limits

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

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Watertown (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 $234,900 (6.1%) $252,219 (5.3%) 0.00 154
2018-02-01 $233,650 (5.6%) $252,012 (3.4%) 0.00 160
2018-03-01 $239,000 (10.5%) $258,848 (7.9%) 0.00 172
2018-04-01 $243,500 (16.0%) $262,899 (12.3%) 0.00 169
2018-05-01 $239,900 (20.0%) $257,056 (10.1%) 0.00 180
2018-06-01 $249,900 (17.7%) $265,356 (8.3%) 0.00 180
2018-07-01 $232,700 (7.8%) $248,982 (0.4%) 0.00 186
2018-08-01 $229,900 (7.5%) $248,841 (1.2%) 0.00 180
2018-09-01 $229,900 (5.5%) $245,142 (-1.3%) 0.00 169
2018-10-01 $229,900 (3.7%) $243,296 (-3.0%) 0.00 162
2018-11-01 $225,200 (4.1%) $243,512 (1.0%) 0.00 161
2018-12-01 $229,400 (4.3%) $245,154 (-0.6%) 0.00 144
2019-01-01 $225,100 (-4.2%) $242,143 (-4.0%) 0.00 136
2019-02-01 $212,450 (-9.1%) $233,235 (-7.5%) 0.00 139
2019-03-01 $222,929 (-6.7%) $237,899 (-8.1%) 0.00 144
2019-04-01 $231,625 (-4.9%) $242,086 (-7.9%) 0.00 148
2019-05-01 $229,900 (-4.2%) $238,929 (-7.1%) 0.00 181
2019-06-01 $229,900 (-8.0%) $235,616 (-11.2%) 0.00 196
2019-07-01 $227,150 (-2.4%) $234,613 (-5.8%) 0.00 206
2019-08-01 $218,627 (-4.9%) $231,932 (-6.8%) 0.00 201
2019-09-01 $209,218 (-9.0%) $227,430 (-7.2%) 0.00 196
2019-10-01 $202,945 (-11.7%) $224,429 (-7.8%) 0.00 186
2019-11-01 $199,400 (-11.5%) $224,053 (-8.0%) 0.00 168
2019-12-01 $209,000 (-8.9%) $228,581 (-6.8%) 0.00 141
2020-01-01 $219,225 (-2.6%) $238,493 (-1.5%) 0.00 126
2020-02-01 $226,950 (6.8%) $240,965 (3.3%) 0.00 138
2020-03-01 $224,450 (0.7%) $238,470 (0.2%) 0.00 138
2020-04-01 $219,900 (-5.1%) $243,350 (0.5%) 0.00 143
2020-05-01 $219,900 (-4.4%) $248,190 (3.9%) 0.00 165
2020-06-01 $241,150 (4.9%) $261,435 (11.0%) 0.00 179
2020-07-01 $252,900 (11.3%) $269,170 (14.7%) 0.00 165
2020-08-01 $249,900 (14.3%) $262,499 (13.2%) 0.00 138
2020-09-01 $227,800 (8.9%) $260,933 (14.7%) 0.00 134
2020-10-01 $219,900 (8.4%) $260,299 (16.0%) 0.00 127
2020-11-01 $207,400 (4.0%) $255,325 (14.0%) 0.00 112
2020-12-01 $224,900 (7.6%) $279,225 (22.2%) 0.00 94
2021-01-01 $219,900 (0.3%) $275,506 (15.5%) 0.00 87
2021-02-01 $232,475 (2.4%) $290,211 (20.4%) 0.00 72
2021-03-01 $261,150 (16.4%) $311,510 (30.6%) 0.00 77
2021-04-01 $309,900 (40.9%) $322,964 (32.7%) 0.00 95
2021-05-01 $339,900 (54.6%) $336,098 (35.4%) 0.00 97
2021-06-01 $339,900 (41.0%) $356,649 (36.4%) 0.00 100
2021-07-01 $375,000 (48.3%) $380,606 (41.4%) 0.00 102
2021-08-01 $339,900 (36.0%) $369,820 (40.9%) 0.00 107
2021-09-01 $339,900 (49.2%) $360,941 (38.3%) 0.00 106
2021-10-01 $339,900 (54.6%) $353,526 (35.8%) 0.00 93
2021-11-01 $339,900 (63.9%) $334,028 (30.8%) 0.00 78
2021-12-01 $334,900 (48.9%) $320,359 (14.7%) 0.00 69
2022-01-01 $339,900 (54.6%) $338,782 (23.0%) 0.00 54
2022-02-01 $339,900 (46.2%) $362,159 (24.8%) 0.00 56
2022-03-01 $339,900 (30.2%) $361,236 (16.0%) 0.00 53
2022-04-01 $332,400 (7.3%) $322,662 (-0.1%) 0.00 54
2022-05-01 $341,150 (0.4%) $386,299 (14.9%) 0.00 76
2022-06-01 $364,900 (7.4%) $395,208 (10.8%) 0.00 82
2022-07-01 $349,900 (-6.7%) $383,095 (0.7%) 0.00 87
2022-08-01 $354,900 (4.4%) $391,221 (5.8%) 0.00 77
2022-09-01 $372,400 (9.6%) $399,841 (10.8%) 0.00 85
2022-10-01 $339,900 (0.0%) $377,058 (6.7%) 0.00 76
2022-11-01 $339,900 (0.0%) $376,925 (12.8%) 0.00 69
2022-12-01 $339,900 (1.5%) $365,672 (14.1%) 0.00 61
2023-01-01 $339,900 (0.0%) $377,434 (11.4%) 0.00 56
2023-02-01 $347,400 (2.2%) $381,324 (5.3%) 0.00 48
2023-03-01 $364,900 (7.4%) $417,981 (15.7%) 0.00 46
2023-04-01 $379,900 (14.3%) $463,434 (43.6%) 0.00 59
2023-05-01 $399,225 (17.0%) $484,994 (25.6%) 0.00 80
2023-06-01 $399,225 (9.4%) $492,396 (24.6%) 0.00 87
2023-07-01 $399,900 (14.3%) $503,709 (31.5%) 0.00 83
2023-08-01 $392,400 (10.6%) $502,554 (28.5%) 0.00 87
2023-09-01 $369,900 (-0.7%) $472,086 (18.1%) 0.00 100
2023-10-01 $349,450 (2.8%) $451,649 (19.8%) 0.00 102
2023-11-01 $344,675 (1.4%) $430,838 (14.3%) 0.00 96
2023-12-01 $349,900 (2.9%) $431,824 (18.1%) 0.00 90
2024-01-01 $353,650 (4.1%) $435,101 (15.3%) 0.00 76
2024-02-01 $379,900 (9.4%) $439,929 (15.4%) 0.00 74
Watertown's median listing price for 2024-02-01 was $379,900, a difference of $32,500 (9.4%) versus the prior year and $26,250 versus the prior month.

Watertown's median listing price comes in at 0% of the national average.

Watertown's average listing price for 2024-02-01 was $439,929, a difference of $58,605 (15.4%) versus the prior year and $4,828 versus the prior month.

For the 2024-02-01 period, Watertown had 74 MLS listings, a difference of -2 listings (-3%) versus the prior month and 26 listings (54%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Watertown (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 0 days 2,286 sqft
2018-02-01 0 days 2,313 sqft
2018-03-01 0 days 2,354 sqft
2018-04-01 0 days 2,433 sqft
2018-05-01 0 days 2,433 sqft
2018-06-01 0 days 2,434 sqft
2018-07-01 0 days 2,295 sqft
2018-08-01 0 days 2,299 sqft
2018-09-01 0 days 2,304 sqft
2018-10-01 0 days 2,288 sqft
2018-11-01 0 days 2,323 sqft
2018-12-01 0 days 2,349 sqft
2019-01-01 0 days 2,304 sqft
2019-02-01 0 days 2,275 sqft
2019-03-01 0 days 2,309 sqft
2019-04-01 0 days 2,355 sqft
2019-05-01 0 days 2,308 sqft
2019-06-01 0 days 2,265 sqft
2019-07-01 0 days 2,251 sqft
2019-08-01 0 days 2,188 sqft
2019-09-01 0 days 2,186 sqft
2019-10-01 0 days 2,184 sqft
2019-11-01 0 days 2,143 sqft
2019-12-01 0 days 2,147 sqft
2020-01-01 0 days 2,195 sqft
2020-02-01 0 days 2,205 sqft
2020-03-01 0 days 2,175 sqft
2020-04-01 0 days 2,157 sqft
2020-05-01 0 days 2,169 sqft
2020-06-01 0 days 2,298 sqft
2020-07-01 0 days 2,320 sqft
2020-08-01 0 days 2,288 sqft
2020-09-01 0 days 2,282 sqft
2020-10-01 0 days 2,193 sqft
2020-11-01 0 days 2,192 sqft
2020-12-01 0 days 2,202 sqft
2021-01-01 0 days 2,080 sqft
2021-02-01 0 days 2,173 sqft
2021-03-01 0 days 2,233 sqft
2021-04-01 0 days 2,066 sqft
2021-05-01 0 days 1,731 sqft
2021-06-01 0 days 1,731 sqft
2021-07-01 0 days 1,753 sqft
2021-08-01 0 days 1,742 sqft
2021-09-01 0 days 1,742 sqft
2021-10-01 0 days 1,731 sqft
2021-11-01 0 days 1,731 sqft
2021-12-01 0 days 1,697 sqft
2022-01-01 0 days 1,731 sqft
2022-02-01 0 days 1,731 sqft
2022-03-01 0 days 1,731 sqft
2022-04-01 0 days 1,731 sqft
2022-05-01 0 days 1,731 sqft
2022-06-01 0 days 1,815 sqft
2022-07-01 0 days 1,932 sqft
2022-08-01 0 days 2,297 sqft
2022-09-01 0 days 2,316 sqft
2022-10-01 0 days 2,185 sqft
2022-11-01 0 days 2,010 sqft
2022-12-01 0 days 2,004 sqft
2023-01-01 0 days 1,988 sqft
2023-02-01 0 days 1,795 sqft
2023-03-01 0 days 1,770 sqft
2023-04-01 0 days 1,991 sqft
2023-05-01 0 days 2,268 sqft
2023-06-01 0 days 2,034 sqft
2023-07-01 0 days 2,109 sqft
2023-08-01 0 days 1,614 sqft
2023-09-01 0 days 1,574 sqft
2023-10-01 0 days 1,501 sqft
2023-11-01 0 days 1,466 sqft
2023-12-01 0 days 1,525 sqft
2024-01-01 0 days 1,525 sqft
2024-02-01 0 days 1,525 sqft
Watertown's median listing age (time on market) for 2024-02-01 was 0 days.

Watertown's median square footage for active listings during the 2024-02-01 period was 1,525 sqft. One year prior, the average listing was 1,795 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).