South Dakota Home Equity Loans

For large, one-time home improvements, repairs or debt consolidation, obtaining a home equity loan in South Dakota is the best choice. However, if the borrower requires a steady cash flow for ongoing expenses (for example, medical or college) a home equity line of credit (HELOC) may be a better decision. Local South Dakota lenders from Sioux Falls (57103) to Valley Springs (57068) are offering competitive terms and rates on second mortgage products such as home equity loans and home equity lines of credit (HELOC). South Dakota borrowers may also deduct the interest from their home equity if the money is used for home improvement or repair; however consult with a tax attorney or accountant to ensure the deduction is possible.

Before applying for a home equity loan or home equity line of credit (HELOC), it’s best to know what South Dakota lenders require. Quality South Dakota lenders will scrutinize the borrower’s credit report and score to ensure that the borrower has the ability to make payments on the loan or line of credit. South Dakota lenders will also calculate the borrower’s loan-to-value ratio based on the home’s appraisal. Then the lender will add the current mortgage balance to the size of the home equity loan or home equity line of credit and divide by the home’s current value, to arrive at the loan-to-value (LTV).