Rapid City, South Dakota
302 Main Street
Rapid City, SD 57701
EXIT Realty The Benchmark Co. is Rapid City, South Dakota’s premiere real estate company offering classes and expertise in real estate investing. Whether you are house hunting or looking to sell property, EXIT Realty The Benchmark Co. will help satisfy all of your real estate needs.

What Loans Can I Use When Buying a House in Rapid City, SD? July 19, 2019

Rapid City, Pennington
What Loans Can I Use When Buying a House in Rapid City, SD?, Rapid City, South Dakota

Whether you’re ready to settle down and build a family or just want a place to call your own, buying a house is an exciting and rewarding milestone. However, just because you’re ready to take this step doesn’t mean your savings account is. If you need some help securing the funds, consider these home loan options.

3 Loans You Can Use When Buying a House

1. Conventional Mortgage

This home loan can be split into two categories, conforming and non-conforming, both of which are not insured by the federal government. While the former falls under a numerical limit set by the country’s mortgage-backing agencies (Fannie Mae and Freddie Mac), non-conforming conventional mortgages, such as jumbo loans, don’t. If you use one of these loans when buying a house and you don’t put out a 20% down payment, you’ll have to obtain private mortgage insurance. To qualify, you should have a FICO score of at least 620 and a debt-to-income ratio of 45 to 50%.

2. Government-Insured Mortgages

buying a houseWhen you take out one of these home loans, it will be backed by the Federal Housing Administration (FHA), the U.S. Department of Agriculture (USDA), or the U.S. Department of Veterans Affairs (VA). These loans are excellent for borrowers who might not qualify for a conventional loan and still need to finance their new property. For example, they have more lenient credit and down payment requirements. On the other hand, because there’s more risk involved, you’ll have to pay higher borrowing costs in the long run.

3. Fixed-Rate Mortgages

If you’d like to take out a home loan with minimal surprises, consider a fixed-rate mortgage. These maintain the same interest rate as long as you use them, so your monthly fees stay the same over 15 to 30 years. This allows homeowners to budget much more easily throughout the year, but it also requires them to pay higher rates and more interest over time. Ideally, you should plan to live in your new home for seven to 10 years if you apply for a fixed-rate mortgage.


Whatever loan option is best for you, EXIT Realty Black Hills is here to help you when buying a house in South Dakota. When you’re ready to embrace this process, their agents will be happy to show you properties that fit your budget and your vision for the future. They serve many communities in the area, including Hill City, Hermosa, Keystone, Hotspring, and Box Elder. To learn more about their company, visit the website. You can also call (605) 716-3948 to speak with an agent in Rapid City. To reach someone in Deadwood, call (605) 722-3948.

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