Home Loans In Pierre, South Dakota 

Pierre, South Dakota’s vibrant capital city, sits on the rough river bluffs overlooking the longest river in North America, the Missouri River. 

Like many other American cities, the housing situation in Pierre is slowly rebounding from the effects of the pandemic. In 2021, the South Dakota Housing Development Authority (SDHDA) awarded over $11 million to fund new home constructions and homelessness prevention and provide homebuyer assistance. 

With things looking up, now may be an opportune time to further your plans for homeownership in Pierre. One of the first things to check off your list is getting a mortgage to cover the purchase. 

With that in mind, here are some of the most popular home loan types you’ll likely come across. 

Types of home loans In Pierre, SD

Home loan products have different requirements. Find out which product best suits your capacity.

• Conventional Loans

Conventional loans don’t have backing from the federal government. They’re ideal if you have a strong credit score and a low debt-to-income (DTI) ratio. You should also be able to afford a sizable down payment (20% and up) or be required to pay private mortgage insurance fees.

• Jumbo Loans

Home loans outside FHFA limits are called jumbo loans. If you’re dreaming of a million-dollar home in Pierre, you go for a jumbo loan. However, expect steeper requirements, such as a minimum credit score of 700 and a DTI of no more than 45%. 

• Government-insured and guaranteed loans

The U.S. government helps potential home buyers secure FHA loans, USDA loans, and VA loans. FHA home loans are an excellent option for first-time home buyers and borrowers with a credit score of 580 and higher. 

A USDA loan is ideal for those living in rural areas with low income because of their 100% financing zero down and low rates characteristic. 

Low-interest VA loans are available for active members or veterans of the US military and their families.

• Fixed-rate Mortgages

From the name itself, a fixed-rate loan has a stable rate during the loan period. However, longer loan terms typically equate to higher interest rates.

• Adjustable-rate Mortgages

ARMs are the opposite of fixed-rate mortgages. Interest fluctuates, and it can be favorable or unfavorable to you based on market movements. ARMs usually have appealing introductory rates. A typical ARM loan is 5/1, wherein you get a fixed rate for five years and an adjusting rate onwards.

Pierre, South Dakota Mortgage Lender

Mortgage products in Pierre don’t have to be confusing. Being a long-term commitment, it’s essential to choose the right product that best suits your financial capacity. 

Our home loan experts at Capital Home Mortgage can help you find the best home loan program that matches your home requirements and financial capacity. 

Capital Home Mortgage can provide you with competitive interest rates, flexible underwriting, and quicker actual approvals as a direct mortgage lender. 

Find The Right Home Loan in Pierre For You Today!

At Capital Home Mortgage, we pride ourselves on working closely with our clients to help them get the best home loans for their needs. Get in touch with our loan officers now by calling (605) 349-4377. 

We look forward to helping you land your dream home in Pierre, South Dakota.