FHA Loans: What You Need to Know in 2022
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2022 FHA Loan Limits in South Dakota

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Home loans backed by the Federal Housing Administration (FHA) offer lower down payment and credit score requirements, but there are limits to the amount you can borrow. In South Dakota, FHA loans in all counties are capped at $420,680 for a single-family home purchase in 2022.

South Dakota FHA loan limits by county

County nameOne unitTwo unitsThree unitsFour unitsMedian sales price
AURORA$420,680$538,650$651,050$809,150$137,000
BEADLE$420,680$538,650$651,050$809,150$112,000
BENNETT$420,680$538,650$651,050$809,150$91,000
BON HOMME$420,680$538,650$651,050$809,150$112,000
BROOKINGS$420,680$538,650$651,050$809,150$257,000
BROWN$420,680$538,650$651,050$809,150$200,000
BRULE$420,680$538,650$651,050$809,150$140,000
BUFFALO$420,680$538,650$651,050$809,150$67,000
BUTTE$420,680$538,650$651,050$809,150$177,000
CAMPBELL$420,680$538,650$651,050$809,150$112,000
CHARLES MIX$420,680$538,650$651,050$809,150$140,000
CLARK$420,680$538,650$651,050$809,150$123,000
CLAY$420,680$538,650$651,050$809,150$157,000
CODINGTON$420,680$538,650$651,050$809,150$188,000
CORSON$420,680$538,650$651,050$809,150$70,000
CUSTER$420,680$538,650$651,050$809,150$161,000
DAVISON$420,680$538,650$651,050$809,150$190,000
DAY$420,680$538,650$651,050$809,150$120,000
DEUEL$420,680$538,650$651,050$809,150$65,000
DEWEY$420,680$538,650$651,050$809,150$77,000
DOUGLAS$420,680$538,650$651,050$809,150$28,000
EDMUNDS$420,680$538,650$651,050$809,150$200,000
FALL RIVER$420,680$538,650$651,050$809,150$155,000
FAULK$420,680$538,650$651,050$809,150$102,000
GRANT$420,680$538,650$651,050$809,150$89,000
GREGORY$420,680$538,650$651,050$809,150$100,000
HAAKON$420,680$538,650$651,050$809,150$143,000
HAMLIN$420,680$538,650$651,050$809,150$188,000
HAND$420,680$538,650$651,050$809,150$154,000
HANSON$420,680$538,650$651,050$809,150$190,000
HARDING$420,680$538,650$651,050$809,150$38,000
HUGHES$420,680$538,650$651,050$809,150$160,000
HUTCHINSON$420,680$538,650$651,050$809,150$113,000
HYDE$420,680$538,650$651,050$809,150$121,000
JACKSON$420,680$538,650$651,050$809,150$72,000
JERAULD$420,680$538,650$651,050$809,150$112,000
JONES$420,680$538,650$651,050$809,150$92,000
KINGSBURY$420,680$538,650$651,050$809,150$132,000
LAKE$420,680$538,650$651,050$809,150$201,000
LAWRENCE$420,680$538,650$651,050$809,150$249,000
LINCOLN$420,680$538,650$651,050$809,150$295,000
LYMAN$420,680$538,650$651,050$809,150$123,000
MARSHALL$420,680$538,650$651,050$809,150$142,000
MCCOOK$420,680$538,650$651,050$809,150$295,000
MCPHERSON$420,680$538,650$651,050$809,150$71,000
MEADE$420,680$538,650$651,050$809,150$266,000
MELLETTE$420,680$538,650$651,050$809,150$66,000
MINER$420,680$538,650$651,050$809,150$105,000
MINNEHAHA$420,680$538,650$651,050$809,150$295,000
MOODY$420,680$538,650$651,050$809,150$160,000
OGLALA LAKOTA$420,680$538,650$651,050$809,150$38,000
PENNINGTON$420,680$538,650$651,050$809,150$266,000
PERKINS$420,680$538,650$651,050$809,150$122,000
POTTER$420,680$538,650$651,050$809,150$123,000
ROBERTS$420,680$538,650$651,050$809,150$124,000
SANBORN$420,680$538,650$651,050$809,150$28,000
SPINK$420,680$538,650$651,050$809,150$75,000
STANLEY$420,680$538,650$651,050$809,150$160,000
SULLY$420,680$538,650$651,050$809,150$196,000
TODD$420,680$538,650$651,050$809,150$36,000
TRIPP$420,680$538,650$651,050$809,150$121,000
TURNER$420,680$538,650$651,050$809,150$295,000
UNION$420,680$538,650$651,050$809,150$250,000
WALWORTH$420,680$538,650$651,050$809,150$106,000
YANKTON$420,680$538,650$651,050$809,150$183,000
ZIEBACH$420,680$538,650$651,050$809,150$69,000

How are FHA loan limits determined?

FHA loan limits can fluctuate from year to year, as they reflect both local housing market prices and the maximum amount borrowers are able to access through conventional mortgages. These amounts are referred to as conforming loan limits and are set by the Federal Housing Finance Agency (FHFA). In 2022, the loan limits were increased across the country by 18% to reflect rising home prices.

FHA maximum loan limits are set at between 65% and 150% of those national conforming loan limits. The lowest loan limit is called the “floor” and is the loan limit for single-family homes in most counties in the U.S. The highest FHA loan limit is called the “ceiling” and only applies to higher cost areas.

How to qualify for an FHA loan in South Dakota

A South Dakota FHA loan could help borrowers with lower credit scores or less cash to spare for a down payment, but you’ll have to meet certain minimum requirements. If this is your first time purchasing a home, you could qualify for further financial assistance from South Dakota’s first-time homebuyer programs, which include funding for construction and rehabilitation.

Regardless of how many times you’ve purchased a home before, you’ll still need to meet these FHA loan requirements:

  • Minimum credit score of 500: If your FICO Score is 500 to 579, you may be eligible for an FHA loan if you can also provide a 10% down payment. Check your credit score here.
  • Minimum 3.5% down payment: The required down payment goes down to 3.5% with a FICO Score of 580 or higher.
  • Debt-to-income (DTI) ratio of 43% or less: Your debt-to-income ratio is a measurement of your total monthly expenses compared to your total monthly income before taxes. While your DTI will typically need to be less than 43%, lenders may consider making exceptions.
  • Purchase mortgage insurance: Two types of FHA mortgage insurance must be purchased to qualify for a loan. The upfront mortgage insurance premium (UFMIP) costs 1.75% of your loan amount, is charged at closing and rolled into your mortgage balance. The annual mortgage insurance premium (MIP) is paid monthly over the life of your loan, ranging between 0.45% and 1.05%, and is added to your monthly mortgage payment.
  • An FHA home appraisal: If you’re purchasing a home with an FHA loan, an FHA appraisal is required. This will determine the market value of the home, as well as ensure it meets minimum property requirements, including health and safety.
  • Primary residence: You must live in the home you purchase with an FHA loan for at least 12 months.

Buying a multifamily property with an FHA loan

You’re not restricted to single-family purchases with an FHA loan. As long as you live in one unit for at least 12 months, the same requirements apply to purchasing a multifamily home of up to four units.

FHA lenders in South Dakota

Consider these five highly rated mortgage lenders who are licensed to practice in South Dakota.

Lender name LT rating Minimum FHA credit score 
Lower.com10580
Veterans United10620
Rocket Mortgage9.5580
BMO Harris Bank 8.5580
Guild Mortgage9540

 

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