HELOC Loans in South Dakota

Home Equity Line of Credit (HELOC)

South Dakota homeowners can access flexible financing through a HELOC (home equity line of credit), allowing them to borrow against their property’s equity during a multi-year draw period. Whether you’re remodeling in Sioux Falls, funding education in Rapid City, or consolidating debt statewide, a HELOC offers revolving access to funds. Most lenders require 15%–20% equity and a minimum credit score of 620. Alternatively, home equity loans provide a fixed lump sum and predictable monthly payments—ideal for large, one-time expenses. Credit unions, community banks, and regional lenders in South Dakota offer competitive terms and streamlined applications.

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How to qualify

To obtain a quote, we will need the following information:

Property Value and

 Purchase Price


Down Payment

Amount


Credit Score

 Asset Types

  • Single Family Homes
  • Townhomes
  • Condos
  • 2 - 4 Units (Duplex, Triplex, Quadplex)
  • Multi-Family: 5 - 8 Units
  • Mixed-Use: 2 - 8 Units
  • Multi-Family: 9+ Unit


Loan Terms

  • Loan Sizes: $100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
  • Purchase LTV: Up to 85%
  • Rate & Term Refinance LTV: Up to 80% 
  • Cash Out Refinance LTV: Up to 80%
  • Amortization: 30 Year % 40 Year Amortization Options Available
  • Term Lengths: 5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
  • Floor Rate: 5.50% (subject to change daily due to market volatility)
  • Full Recourse with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
  • DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
  • Vesting: Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
  • Average Time to Close: 14 to 35 days

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Frequently Asked Questions

What is a HELOC and how does it differ from a home equity loan?

A HELOC in South Dakota is a revolving credit line secured by your home’s equity. You draw funds as needed and repay them over time, while a home equity loan provides a one-time disbursement with fixed interest and monthly payments. Choose a HELOC for flexibility or a loan for stability.

How do HELOC rates work and what affects the interest rate?

HELOC rates in South Dakota are typically variable and tied to the prime rate. Your APR will depend on credit score, income, loan-to-value ratio, and lender underwriting. Some South Dakota lenders offer rate caps, fixed-rate conversions, or autopay discounts. Comparing multiple offers ensures you get the best deal.

Can I qualify for a home equity loan in South Dakota with low credit?

Yes, it’s possible to qualify for a home equity loan in South Dakota with lower credit, particularly if you have strong equity and stable income. While most lenders prefer scores above 620, some will work with borrowers in the 580–620 range. Expect more documentation and higher rates with subprime credit.

How much equity do I need in my home to get a HELOC?

In South Dakota, most lenders require at least 15%–20% equity to qualify for a HELOC. This means your mortgage should be no more than 80%–85% of your home’s value. Lenders also assess your credit score, income, and existing debt load.

Are home equity loans in South Dakota better for large expenses?

Yes, home equity loans in South Dakota are ideal for large, fixed expenses like renovations, medical bills, or tuition. They offer a lump sum with fixed payments, which is easier to budget. HELOCs are better for ongoing or unpredictable costs. Choose based on your financial goals.

What are typical equity rates and loan terms in South Dakota?

In South Dakota, HELOC APRs typically range from 7% to 10%, depending on credit score, income, and home equity. Most HELOCs come with a 10-year draw period and a 10- to 20-year repayment window. Fixed-rate home equity loans offer 5- to 30-year terms. Compare multiple lenders to secure the best terms.

Exploring nearby options? Review HELOC programs in North Dakota , Nebraska , and Minnesota to find competitive offers in neighboring states.