Whether you receive PCS orders to relocate to South Dakota or are already a resident, purchasing a home can be a great financial move. Using a VA loan in South Dakota has many benefits for seasoned and first-time homebuyers alike.
With the average listing price of a home in South Dakota landing at $320,504, the VA loan’s signature $0-money-down benefit is a considerable advantage for South Dakota homebuyers.
See also: VA Loan Options for Other States
VA loans are made by private lenders and guaranteed by the Department of Veterans Affairs. Because private lenders make the loans and not the VA, you need to find a lender licensed in the state you plan to purchase or refinance.
For example, if you're purchasing a home in Sioux Falls, SD, you'll need to find a lender licensed in South Dakota to do the loan.
VA borrowers in South Dakota should also consider the cost and impact of VA loan limits and property taxes when making their home purchase.
As of January 1, 2020, VA borrowers in South Dakota with their full VA loan entitlement are not restricted by VA loan limits. This means you can borrow as much as a lender is willing to lend without needing a down payment.
However, veterans without their full VA loan entitlement are still bound to South Dakota’s VA loan limits.
As of Jan 1, 2021, VA loan limits for all counties in South Dakota are $548,250.
Another consideration for VA buyers in South Dakota is property taxes. For certain VA buyers, there are exemptions.
You may be eligible for a property tax exemption in South Dakota if you meet one of the following conditions:
If you are required to pay property tax in South Dakota, the American Community Survey by the U.S. Census Bureau estimates you may pay the following in each county:
|County||Property Tax Rate|
|Bon Homme County||1.63%|
|Charles Mix County||1.22%|
|Fall River County||1.50%|
View the graphic below to learn more about how VA loans work in South Dakota.