Watertown FHA Loan Rates, Closing Costs & Stats

Watertown, 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.

    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 6.11% for the week of 2025-02-14, compared to the national average (all FHA variants) of 6.515% for the same period.

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

    The average rate for the prior week (2025-02-07) was 6.52% and one month ago for the week of 2025-01-10, the average rate was 6.28%.

    The average rate one year ago was 6.21%.

    For refis of the same type during the week of 2025-02-14, the average rate was 6.52%.

    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 $236,950 (4.2%) $254,999 (3.4%) 0.00 144
    2018-02-01 $234,900 (2.6%) $254,898 (1.4%) 0.00 149
    2018-03-01 $239,000 (8.2%) $260,814 (4.9%) 0.00 160
    2018-04-01 $244,900 (16.7%) $266,369 (10.5%) 0.00 158
    2018-05-01 $244,600 (17.9%) $261,188 (8.4%) 0.00 165
    2018-06-01 $253,900 (12.1%) $273,440 (6.7%) 0.00 157
    2018-07-01 $242,400 (5.4%) $258,672 (0.3%) 0.00 163
    2018-08-01 $240,550 (5.4%) $256,101 (0.5%) 0.00 161
    2018-09-01 $234,900 (2.2%) $252,686 (-2.4%) 0.00 149
    2018-10-01 $234,900 (3.2%) $246,897 (-4.8%) 0.00 143
    2018-11-01 $229,400 (4.4%) $243,616 (-0.7%) 0.00 145
    2018-12-01 $233,000 (5.5%) $243,618 (-2.5%) 0.00 133
    2019-01-01 $227,500 (-4.0%) $240,249 (-5.8%) 0.00 127
    2019-02-01 $219,950 (-6.4%) $231,973 (-9.0%) 0.00 129
    2019-03-01 $229,779 (-3.9%) $237,893 (-8.8%) 0.00 133
    2019-04-01 $235,004 (-4.0%) $243,157 (-8.7%) 0.00 137
    2019-05-01 $234,400 (-4.2%) $241,084 (-7.7%) 0.00 159
    2019-06-01 $232,900 (-8.3%) $243,148 (-11.1%) 0.00 171
    2019-07-01 $229,900 (-5.2%) $241,497 (-6.6%) 0.00 181
    2019-08-01 $226,355 (-5.9%) $238,522 (-6.9%) 0.00 178
    2019-09-01 $221,036 (-5.9%) $234,963 (-7.0%) 0.00 173
    2019-10-01 $216,900 (-7.7%) $231,871 (-6.1%) 0.00 166
    2019-11-01 $209,000 (-8.9%) $228,673 (-6.1%) 0.00 154
    2019-12-01 $211,950 (-9.0%) $233,228 (-4.3%) 0.00 125
    2020-01-01 $224,225 (-1.4%) $243,841 (1.5%) 0.00 113
    2020-02-01 $229,900 (4.5%) $245,524 (5.8%) 0.00 125
    2020-03-01 $227,400 (-1.0%) $244,066 (2.6%) 0.00 121
    2020-04-01 $221,950 (-5.6%) $247,491 (1.8%) 0.00 131
    2020-05-01 $219,900 (-6.2%) $245,443 (1.8%) 0.00 143
    2020-06-01 $241,150 (3.5%) $261,163 (7.4%) 0.00 152
    2020-07-01 $257,400 (12.0%) $268,813 (11.3%) 0.00 138
    2020-08-01 $249,900 (10.4%) $266,347 (11.7%) 0.00 116
    2020-09-01 $229,800 (4.0%) $266,424 (13.4%) 0.00 118
    2020-10-01 $224,900 (3.7%) $264,213 (14.0%) 0.00 112
    2020-11-01 $217,900 (4.3%) $263,851 (15.4%) 0.00 98
    2020-12-01 $234,925 (10.8%) $280,056 (20.1%) 0.00 82
    2021-01-01 $234,900 (4.8%) $278,522 (14.2%) 0.00 75
    2021-02-01 $242,425 (5.5%) $296,119 (20.6%) 0.00 61
    2021-03-01 $266,450 (17.2%) $316,335 (29.6%) 0.00 67
    2021-04-01 $312,400 (40.8%) $330,383 (33.5%) 0.00 85
    2021-05-01 $339,900 (54.6%) $338,807 (38.0%) 0.00 86
    2021-06-01 $349,950 (45.1%) $368,794 (41.2%) 0.00 88
    2021-07-01 $379,900 (47.6%) $375,123 (39.6%) 0.00 91
    2021-08-01 $356,175 (42.5%) $365,208 (37.1%) 0.00 96
    2021-09-01 $339,900 (47.9%) $348,960 (31.0%) 0.00 93
    2021-10-01 $339,900 (51.1%) $333,028 (26.1%) 0.00 80
    2021-11-01 $339,900 (56.0%) $330,641 (25.3%) 0.00 69
    2021-12-01 $339,900 (44.7%) $317,682 (13.4%) 0.00 59
    2022-01-01 $339,900 (44.7%) $331,765 (19.1%) 0.00 46
    2022-02-01 $339,900 (40.2%) $331,973 (12.1%) 0.00 49
    2022-03-01 $339,900 (27.6%) $329,877 (4.3%) 0.00 47
    2022-04-01 $339,900 (8.8%) $307,445 (-6.9%) 0.00 50
    2022-05-01 $343,650 (1.1%) $366,726 (8.2%) 0.00 69
    2022-06-01 $364,900 (4.3%) $375,807 (1.9%) 0.00 73
    2022-07-01 $349,900 (-7.9%) $374,915 (-0.1%) 0.00 78
    2022-08-01 $359,900 (1.1%) $394,425 (8.0%) 0.00 68
    2022-09-01 $374,900 (10.3%) $393,929 (12.9%) 0.00 77
    2022-10-01 $339,900 (0.0%) $362,497 (8.9%) 0.00 67
    2022-11-01 $329,900 (-2.9%) $351,933 (6.4%) 0.00 61
    2022-12-01 $319,900 (-5.9%) $347,692 (9.5%) 0.00 53
    2023-01-01 $339,900 (0.0%) $355,925 (7.3%) 0.00 48
    2023-02-01 $339,900 (0.0%) $347,925 (4.8%) 0.00 40
    2023-03-01 $357,400 (5.2%) $386,860 (17.3%) 0.00 39
    2023-04-01 $375,900 (10.6%) $431,407 (40.3%) 0.00 48
    2023-05-01 $372,650 (8.4%) $434,779 (18.6%) 0.00 67
    2023-06-01 $369,900 (1.4%) $423,654 (12.7%) 0.00 72
    2023-07-01 $377,000 (7.8%) $441,628 (17.8%) 0.00 67
    2023-08-01 $387,400 (7.6%) $441,601 (12.0%) 0.00 71
    2023-09-01 $364,900 (-2.7%) $428,286 (8.7%) 0.00 85
    2023-10-01 $350,650 (3.2%) $417,177 (15.1%) 0.00 87
    2023-11-01 $350,425 (6.2%) $400,753 (13.9%) 0.00 84
    2023-12-01 $354,900 (10.9%) $396,338 (14.0%) 0.00 82
    2024-01-01 $364,900 (7.4%) $397,867 (11.8%) 0.00 69
    2024-02-01 $381,150 (12.1%) $396,488 (14.0%) 0.00 67
    2024-03-01 $374,900 (4.9%) $412,269 (6.6%) 0.00 53
    2024-04-01 $394,900 (5.1%) $428,743 (-0.6%) 0.00 63
    2024-05-01 $376,900 (1.1%) $397,449 (-8.6%) 0.00 70
    2024-06-01 $367,000 (-0.8%) $389,208 (-8.1%) 0.00 76
    2024-07-01 $345,700 (-8.3%) $383,881 (-13.1%) 0.00 91
    2024-08-01 $359,900 (-7.1%) $399,348 (-9.6%) 0.00 93
    2024-09-01 $364,450 (-0.1%) $401,484 (-6.3%) 0.00 94
    2024-10-01 $367,450 (4.8%) $407,430 (-2.3%) 0.00 100
    2024-11-01 $359,900 (2.7%) $402,096 (0.3%) 0.00 95
    2024-12-01 $357,400 (0.7%) $399,307 (0.8%) 0.00 78
    2025-01-01 $359,975 (-1.4%) $411,336 (3.4%) 0.00 63
    Watertown's median listing price for 2025-01-01 was $359,975, a difference of $-4,925 (-1.4%) versus the prior year and $2,575 versus the prior month.

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

    Watertown's average listing price for 2025-01-01 was $411,336, a difference of $13,469 (3.4%) versus the prior year and $12,029 versus the prior month.

    For the 2025-01-01 period, Watertown had 63 MLS listings, a difference of -15 listings (-19%) versus the prior month and -6 listings (-9%) 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 2,354 sqft
    2018-02-01 0 days 2,390 sqft
    2018-03-01 0 days 2,416 sqft
    2018-04-01 0 days 2,491 sqft
    2018-05-01 0 days 2,516 sqft
    2018-06-01 0 days 2,531 sqft
    2018-07-01 0 days 2,420 sqft
    2018-08-01 0 days 2,352 sqft
    2018-09-01 0 days 2,358 sqft
    2018-10-01 0 days 2,296 sqft
    2018-11-01 0 days 2,358 sqft
    2018-12-01 0 days 2,358 sqft
    2019-01-01 0 days 2,304 sqft
    2019-02-01 0 days 2,277 sqft
    2019-03-01 0 days 2,315 sqft
    2019-04-01 0 days 2,372 sqft
    2019-05-01 0 days 2,346 sqft
    2019-06-01 0 days 2,283 sqft
    2019-07-01 0 days 2,280 sqft
    2019-08-01 0 days 2,227 sqft
    2019-09-01 0 days 2,220 sqft
    2019-10-01 0 days 2,214 sqft
    2019-11-01 0 days 2,170 sqft
    2019-12-01 0 days 2,195 sqft
    2020-01-01 0 days 2,243 sqft
    2020-02-01 0 days 2,242 sqft
    2020-03-01 0 days 2,196 sqft
    2020-04-01 0 days 2,172 sqft
    2020-05-01 0 days 2,179 sqft
    2020-06-01 0 days 2,390 sqft
    2020-07-01 0 days 2,439 sqft
    2020-08-01 0 days 2,424 sqft
    2020-09-01 0 days 2,348 sqft
    2020-10-01 0 days 2,280 sqft
    2020-11-01 0 days 2,265 sqft
    2020-12-01 0 days 2,278 sqft
    2021-01-01 0 days 2,148 sqft
    2021-02-01 0 days 2,344 sqft
    2021-03-01 0 days 2,295 sqft
    2021-04-01 0 days 2,114 sqft
    2021-05-01 0 days 1,753 sqft
    2021-06-01 0 days 1,773 sqft
    2021-07-01 0 days 1,742 sqft
    2021-08-01 0 days 1,790 sqft
    2021-09-01 0 days 1,746 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 1,783 sqft
    2022-07-01 0 days 1,926 sqft
    2022-08-01 0 days 2,345 sqft
    2022-09-01 0 days 2,537 sqft
    2022-10-01 0 days 2,232 sqft
    2022-11-01 0 days 2,013 sqft
    2022-12-01 0 days 2,004 sqft
    2023-01-01 0 days 1,901 sqft
    2023-02-01 0 days 1,731 sqft
    2023-03-01 0 days 1,756 sqft
    2023-04-01 0 days 1,940 sqft
    2023-05-01 0 days 2,199 sqft
    2023-06-01 0 days 1,878 sqft
    2023-07-01 0 days 2,009 sqft
    2023-08-01 0 days 1,552 sqft
    2023-09-01 0 days 1,558 sqft
    2023-10-01 0 days 1,501 sqft
    2023-11-01 0 days 1,477 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
    2024-03-01 0 days 1,552 sqft
    2024-04-01 0 days 1,544 sqft
    2024-05-01 0 days 1,510 sqft
    2024-06-01 0 days 1,427 sqft
    2024-07-01 0 days 1,427 sqft
    2024-08-01 0 days 1,991 sqft
    2024-09-01 0 days 1,974 sqft
    2024-10-01 0 days 1,976 sqft
    2024-11-01 0 days 1,977 sqft
    2024-12-01 0 days 1,932 sqft
    2025-01-01 0 days 1,909 sqft
    Watertown's median listing age (time on market) for 2025-01-01 was 0 days.

    Watertown's median square footage for active listings during the 2025-01-01 period was 1,909 sqft. One year prior, the average listing was 1,525 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).