Frequently Asked Questions in Sioux Falls, SD

Buying or refinancing a home comes with a lot of questions. Our Sioux Falls loan officers answered the ones we hear most often, from credit scores and down payments to the closing process and reverse mortgages.

Don’t see your question? Contact us directly and we’ll walk you through it.

  • It depends on the loan program. FHA loans may be available with a credit score as low as 580 with a 3.5% down payment. Conventional loans typically require a minimum of 620. VA and USDA loans don't have a strict minimum set by the government, but most lenders, including Fairway Heartland, look for a score of 620 or higher. The good news: a lower score doesn't always mean you're out of options, talk to one of our loan officers about which program fits your situation.

  • Your rate depends on your credit score, down payment, loan type, and the property itself, generally, the lower the risk to the lender, the better the rate. Rates change daily based on market conditions, so the best way to know your rate is to talk with a Fairway Heartland loan officer, who can review your situation and provide a personalized quote.

  • It depends on the loan program. Conventional loans may allow as little as 3% down for qualified first-time buyers. FHA loans require 3.5% down. VA and USDA loans may require no down payment at all for eligible borrowers. Jumbo loans typically require a larger down payment. Our loan officers can walk you through which programs you may qualify for based on your financial picture.

  • A typical mortgage can take 30-45 days to close, though it can vary based on the loan type and how quickly documentation is provided. As a direct lender, Fairway Heartland handles processing, underwriting, and closing in-house, and qualified buyers using our Fairway Advantage Pre-Approval may close in as few as 9 business days.

  • If your down payment is less than 20% on a conventional loan, you'll typically pay private mortgage insurance (PMI) until you reach 20% equity. FHA loans require mortgage insurance (MIP) for the life of the loan in most cases, regardless of down payment. PMI/MIP costs vary but often add more than $1,000 per year to your housing payment, your loan officer can show you exactly what to expect for your scenario.

  • Yes. Your name stays on the title and ownership does not transfer to the lender. The lender places a lien on the property, similar to a traditional mortgage, but you can sell, move, or leave the home to your heirs at any time. Learn more on our reverse mortgage page.ion

  • No. A HECM is a non-recourse loan, meaning the amount owed is capped at the home's value when the loan becomes due. If the balance exceeds the home's value, FHA insurance covers the difference, heirs are never personally responsible for the gap.

  • You must be 62 or older, the home must be your primary residence, and you need sufficient equity built up. Our Certified Reverse Mortgage Specialists, Troy Lage, Jeff Buum, and Nick Kiesow, can review your situation in a no-pressure first conversation.

  • No. While our offices are in Sioux Falls and Brookings, we serve homebuyers and homeowners throughout Southeast South Dakota, including Harrisburg, Tea, Brandon, and surrounding communities.

  • Yes. Our loan officers are licensed in multiple states, which makes Fairway Heartland a natural fit for South Dakota residents relocating out of state or purchasing a second home in another state. You work with the same trusted local team regardless of where the property is located, contact us to confirm licensing in the specific state you're buying in.

  • Yes. The South Dakota Housing Development Authority (SDHDA) offers bond programs and down payment assistance for eligible first-time and repeat homebuyers. Visit sdhda.org or ask your Fairway Heartland loan officer whether you qualify.

  • Yes, through the Heartland Heroes Program, eligible medical professionals, veterans, active-duty military, law enforcement, firefighters, and teachers may receive a discount on closing costs. Learn more on our Heartland Heroes page.