3 Best Jumbo Loans in South Dakota

You could almost say that it’s hard to avoid natural beauty in South Dakota. With an abundance of parks, lakes and trails, the state features some of the country’s best hunting, fishing and outdoor activities. It’s also the location of many famous landmarks, including Mount Rushmore and the Badlands.  

The prices on many homes in South Dakota are rising, however, making home buying more complicated. According to the Argus Leader, the average price for a home in the state is $241,500. While that average price is still well below the limits on traditional mortgages, South Dakotans looking for larger parcels or more modern homes may need more purchasing power than they can get with a conventional loan. 

For the most recent year, the HDMA data places South Dakota 49th in the country in terms of mortgage origination activity. If you decide to go with a jumbo mortgage in South Dakota, you may see quite a few other South Dakotans doing so, as well. 

What is the jumbo loan limit in South Dakota?

The jumbo loan limit in South Dakota is $726,200 for all counties in the state. Any loan that exceeds $726,200 is a jumbo loan in the state of South Dakota. Any loan that is less than $726,200 is a conforming loan in the state of South Dakota.

3 Top South Dakota jumbo loan lenders

If you’re ready to learn more about the best jumbo mortgage lenders in South Dakota, here are the top options we’ve found through our research.

1. SoFi

SoFi is a financial institution based in California that specializes in student loan refinance options, PLUS loans and flexible repayment terms. You might not know that they also offer jumbo loan mortgages.

We spoke to a loan officer at SoFi to discuss their jumbo loan mortgage and this is what we learned:

• Loan amounts up to $3 million
• Down payments start at 10% and increase as the loan amount increases.
• No PMI, regardless of your down payment amount.
• 15-year or 30-year fixed rate products available

When you’re ready to connect with a loan officer experienced in jumbo mortgages, use our form to quickly match with jumbo loan programs based on your specific circumstances.

2. Huntington Bank

Huntington Bank is the 26th largest bank in the United States. Operating primarily out of the Midwest, their mortgage group can service a large part of the country. Huntington has a competitive physician loan product with no money down financing options.

We contacted a loan officer at Huntington Bank to gather information about the doctor mortgage and here’s what we heard back:

• Loan amounts up to $2.5 million
• Purchase and refinance available
• Refinancing allows you to take up to $750,000 of equity out of your home.
• Second homes are eligible
• Multi-unit properties are eligible

When you’re ready to connect with a loan officer experienced in jumbo mortgages, use our form to quickly match with jumbo loan programs based on your specific circumstances.

3. Flagstar Bank

Flagstar Bank has a jumbo product in all 50 states, making it a popular choice among many people looking for higher mortgage amounts. If you’re considering a jumbo mortgage, you’ll want to compare Flagstar’s rates as part of your analysis.

We reached out to a loan officer at Flagstar Bank to get details on their jumbo mortgage. Here are the highlights:

• Loan amounts up to $3 million on primary residences
• Loan amounts up to $2.5 million on second homes
• Purchase and rate/term refinance options available on primary residences and second homes
• No prepayment penalties
• First-time homebuyers permitted
• No mortgage insurance options available
• Cash-out options available on primary residence

When you’re ready to connect with a loan officer experienced in jumbo mortgages, use our form to quickly match with jumbo loan programs based on your specific circumstances.

Benefits of getting a jumbo loan in South Dakota

Whether you want a home in Butte, Beadle, Brule, Yankton, Brookings, or Sioux Falls, a conforming loan limit might block you from your dream home. If you have already looked into an adjustable rate mortgage or a VA loan and those won’t work for you, a jumbo loan could help you get that single-family home you’ve had your eye on.

Although new and modernized houses are becoming more popular in South Dakota, many homebuyers are having trouble finding ways to finance these more expensive homes. Some lenders in South Dakota provide an answer to remedy this situation: jumbo loans. FHA home loans and VA loans come with very rigid requirements, especially when it comes to the purchase price allowed. The down payment for a traditional home loan can be a lot of money, even with an FHA loan, so borrowers will want to shop around and see if mortgage lenders offer alternative loans, too.

By taking out a jumbo loan, homebuyers can finance a large purchase with just one loan, as opposed to taking out several loans. They also will not likely need as big a down payment as they would with a traditional loan. With prices going in the direction they are going in South Dakota, this can be one of the easiest ways homebuyers can finance a larger or more expensive home. 

Always do your own research about mortgage rates or interest rates, closing costs, down payment requirements, and monthly payments if you’re going with a jumbo loan. Buying real estate is exciting for homeowners in the moment, but don’t forget about paying that back over the life of your South Dakota mortgage, either.

After verifying your eligibility, use a mortgage calculator to make sure you’re confident with all the terms in your home loan. With so many loan options out there, you want to feel confident that you’ve selected the best loan term and mortgage payment for your needs, especially if you’re stepping outside of conventional loans.

Does a South Dakota jumbo loan make sense for you?

If your credit score is in great shape, a South Dakota jumbo loan might be right for you. Lenders making these loans have strict criteria due to their risk exposure, so you will need to have good to great credit. Over time, your home equity will help you keep that good credit, too, so long as you keep up with the monthly payments.

A jumbo loan also makes sense for you if you are okay with potentially having to pay more in terms of interest.  The approval process can take some time, too, so be prepared to spend some time on it. If you are not bothered by these complexities and attracted to the ease with which a jumbo loan lets you finance a big purchase, these loans may be ideal for you.

Need a jumbo loan in a different state?

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