Updated: November 16, 2024
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U.S. Bank is the best home equity line of credit (HELOC) lender in South Dakota with a MoneyGeek score of 94 out of 100. Black Hills Federal Credit Union follows closely with a score of 93 out of 100.
The average HELOC limit in South Dakota is $85,316. How much you can borrow depends on your home equity, outstanding mortgage balance and credit score.
Comparing rates helps find suitable lenders. MoneyGeek compiled the best HELOC rates in South Dakota, updated weekly to assist you in your HELOC journey.
The average HELOC balance in South Dakota in the third quarter of 2023 was $33,214, according to Experian. Calculating your HELOC payments is key to managing this type of debt and planning for any adjustments in your financial obligations.
Use our HELOC payment calculator to estimate your monthly payments based on the amount drawn, APR and loan terms. The full amortization schedule provided shows how much of your payments go toward interest and principal over time.
This HELOC payment calculator assumes that you take out one lump sum at the start of your interest-only period. Your actual payoff schedule will vary depending on your interest rate and market conditions.
Draw Period Payment
Repayment Period Payment
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Home equity lines of credit (HELOCs) are a popular financial tool in South Dakota, largely because they offer homeowners flexibility in accessing funds tied to their property's value. Here are some common ways you can use a HELOC to meet your financial needs.
Home improvements or renovations
A HELOC is ideal for home improvements, offering flexibility as costs may change. It allows you to finance renovations without finalizing costs upfront, making it a smart choice for dynamic projects.
Consolidating high-interest debt
The average 2023 consumer debt in South Dakota was $92,733. Using a HELOC for debt consolidation can simplify payments and reduce interest rates, helping manage multiple debts efficiently.
Education expenses
Using a HELOC for education expenses offers lower interest rates than other debts. It can cover tuition, books and housing, making it a practical choice for funding education..
Investment properties
A HELOC can finance investment properties, offering flexibility and potential tax benefits. Make sure to shop around to find the best HELOC lenders for investment property and secure the best rates and favorable terms.
Understanding the steps to apply for a HELOC in South Dakota can help you navigate the process with confidence. We've simplified this journey into six steps below.
Start by checking your credit score, which can influence your approval chances. The average credit score in South Dakota is 734, based on Experian data for the third quarter of 2023. A higher score may improve your chances of approval. Additionally, evaluate your debt-to-income ratio and home equity to gauge your financial health and readiness for a HELOC.
Comparing rates from different lenders in South Dakota can help you secure the best HELOC deal. Look beyond interest rates and consider other features such as repayment terms, fees and the option to apply for a fixed-rate HELOC to ensure you choose a lender that aligns with your financial needs and goals.
Gathering the necessary documents ahead of time can streamline your HELOC application. Commonly required documents include proof of income, recent tax returns and information on your mortgage and home value.
You can submit your HELOC application online or in-person if your lender has a branch. Ensure all information is accurate and complete to avoid delays. Double-check for errors or omissions before submission.
Some lenders may require a home appraisal to assess your home's current market value. A home appraisal involves a professional evaluating your property to determine its worth, which can impact your HELOC terms.
The approval process for a HELOC can take two to six weeks. Once approved, you'll proceed to closing, which involves signing documents and potentially paying closing costs. Some lenders may cover part of these costs.
The average HELOC limit in South Dakota was $85,316 in the third quarter of 2023, according to Experian. The amount you can borrow is usually tied to the equity you have in your home, meaning the higher your equity, the higher your potential credit limit can be.
Check out the table below to see the range of credit lines offered by South Dakota lenders in our database.
| Black Hills Federal Credit Union | From $10,000 |
| U.S. Bank | $25,000 to $750,000 |
When choosing a lender for a HELOC, a local bank or credit union may not charge you as many fees as an online lender or mortgage broker (if they charge you any fees at all). Usually you just need to pay for the appraisal fee, which can be anywhere from $150 to $500. Although an online lender may advertise a better rate, if it’s charging thousands of dollars in fees, it may not be the best financial decision to take the perceived lower rate.
U.S. Bank is the best HELOC lender in South Dakota, with a MoneyGeek score of 94 out of 100. It excels in customer service and education, reputation and transparency, and has an efficient application process and quick approval turnaround.
When looking for the best HELOC lenders for bad credit, focus on lenders that offer flexible terms, consider alternative credit data and have experience working with borrowers with lower credit scores.
Consider interest rates, fees, borrowing limits, repayment terms and lender reputation when choosing a HELOC lender.
Common fees to compare include origination fees, annual fees, application fees and early closure fees.
The typical draw period for HELOCs is 10 years, but some lenders may offer more flexible options.
Look for lenders that offer fixed-rate HELOC options or allow interest-only payments during the draw period.
MoneyGeek's scoring system offers a comprehensive overview of how each lender performed in areas that matter most to borrowers. Scores were allocated based on the inclusion or exclusion of certain desirable features in various critical categories.
Our analysis was completed in October 2024 and considered different banks and credit unions in South Dakota from S&P Global's SNL Depository Rates dataset.
About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.
