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South Dakota Real Estate
If you are looking to get into the real estate market, there has never been a better time. If you are looking to buy in South Dakota, you are not only going to find some of the most beautiful places in the country, but you are going to find some fantastic deals and incentives for purchasing a new home.
The median price of a home in South Dakota overall is around $169,000, but that can vary between metropolitan areas. Interest rates are at the lowest in decades. You will be amazed at what you can purchase in South Dakota for your money. Mortgage rates vary currently from 5 to 5.75% for a 30 year fixed loan, from 4.375 to 5.125% for a 15 year fixed, and an astounding 3.625 to 4.625% for a 5/1 adjustable rate mortgage. When you apply those rates to the average home prices in some of the cities in South Dakota, you can have the American Dream of home ownership for the price of a rental home.
In the Rapid City area the average home price is $192,900.00 which is up 1.6% from last quarter. If you assume a 10% down payment you are looking at mortgage payments from $932.00 to $1013.00 for a 30 year fixed, $1317.00 to $1384.00 for a 15 year fixed and $792.00 to 893.00 for a 5/1 ARM. In Sioux Falls the average price is up 3.9% from last quarter to $157,900. Using the same 10% down you could be paying as low as $648.00 to $731.00 for a 5/1 ARM, $763.00 to $829.00 for 30 year fixed and $1078.00 to 1133.00 for a 15 year fixed. The biggest increase in value of these three cities since last quarter would be Brookings which had values up 12% from last quarter to bring the median home price to $167,900.00. There you could own for $811 to $882 with a 30 year fixed mortgage, $1146.00 to $1205.00 for 15 year fixed and if you go with the 5/1 ARM anywhere from $689.00 to $777.00. The rates now are absolutely amazing.
When it comes to incentive programs to purchase a home, South Dakota has more than most states. The South Dakota Housing and Development Authority has one program called HOME for low and very low income families. If you qualify the loan breaks down to 10% from the owner, 40% in a traditional bank loan and 50% HOME funds. As if the current rates were not good enough, the HOME funds are repaid at zero percent interest. And that is just the beginning. There is of course the up to $8000.00 tax credit that the government will give a first time home buyer, but South Dakota takes that a step further. The South Dakota Housing and Development Authority has their own first time home buyer program offering below market interest rates as well as a down payment assistance program that works with this program which will allow you to use a portion of the government tax credit toward down payment or closing costs.
That is not all when it comes to incentive programs. There is also a loan assist program to help you with 3% to use for down payment, closing costs or gap financing. Then there is the Employer Mortgage Assistance program that will loan you 2% to help pay those same costs if you work for a participating employer. These programs are loaned in the form of a second mortgage to be repaid in 5 years. The amount of help you can get from the state of South Dakota phenomenal.
With all of these incentives for buyers, the sellers market is just as good. Home values are on the rise and there seems to be no end to the help a potential home buyer can receive. Add that to the incredible interest rates out there already, and selling your home should be a breeze. What better time to upgrade your current home than now when there are so many incentive programs.
So do not put it off any longer. It is the time to invest in real estate and there is no place that will offer you not just the beauty of the Black Hills, Mount Rushmore and Hot Springs, but the beauty of finally owning the home you've always dreamed of.