Areas We Serve

Griffin Funding takes pride in being a VA home loan lender in South Dakota, committed to assisting veterans statewide. Whether you’re seeking a VA loan in Sioux Falls or another city in South Dakota, we’re here to support you. Some of the major cities we cater to include:

  • Sioux Falls
  • Rapid City
  • Aberdeen
  • Brookings
  • Watertown
  • Mitchell
  • Yankton
  • Pierre
  • Huron
  • Vermillion

Griffin Funding is dedicated to supporting veterans throughout South Dakota by offering VA loans statewide, ensuring that all eligible veterans can access the benefits they deserve.

How Do VA Home Loans Work in South Dakota?

A VA purchase loan is a mortgage loan backed by the U.S. Department of Veterans Affairs, designed to assist veterans, active-duty service members, and eligible surviving spouses in South Dakota. This program allows qualifying borrowers to secure home financing at a low rate while not being subject to down payment or mortgage insurance requirements.

Borrowers are able to secure better terms and rates with VA loans because the VA promises to guarantee up to 25% of the loan amount in case the borrower defaults. This provides lenders with a greater sense of security, allowing them to be more flexible when it comes to things like down payment amount and credit score requirements.

Benefits of South Dakota VA Loans

VA home loans offer many benefits for veterans, active-duty service members, and eligible surviving spouses. These loans provide significant advantages that improve the accessibility and affordability of owning a home.

  • Zero down payment: Eligible borrowers can purchase a home without a down payment, which significantly lowers the upfront costs associated with buying a home.
  • Competitive interest rates: VA loans often come with lower interest rates compared to conventional loans, leading to more affordable monthly mortgage payments. Borrowers can also purchase VA loan points to lower their rate and potentially save money in the long run.
  • No private mortgage insurance (PMI): VA loan borrowers are spared from the burden of PMI, which is often obligatory with traditional loans when the down payment is below 20%.
  • Simplified qualification: The VA loan program features more lenient credit requirements, making it easier for veterans to qualify.
  • Assistance programs: The VA offers foreclosure avoidance assistance to aid borrowers facing financial difficulties, providing valuable support when needed.
  • Limited closing costs: The VA places limits on how much borrowers can contribute to closing costs and makes certain fees non-allowable. For example, VA loans can’t include prepayment penalties and origination fees can’t exceed one percent of the loan amount.

Types of VA Loans We Offer

South Dakota VA home loans are available not just to purchase a home, but also to refinance an existing mortgage. Here’s an overview of the different types of VA loans available in South Dakota:

  • VA Purchase Loan: Highly favored for buying a new home, this loan type offers benefits to borrowers such as no down payment, no PMI, and competitive interest rates, making it a popular choice among veterans.
  • VA Streamline Refinance (IRRRL): The Interest Rate Reduction Refinance Loan (IRRRL) enables homeowners with current VA loans to refinance at a lower interest rate. Overall, the process becomes much more streamlined, requiring minimal paperwork and incurring lower costs.
  • VA Cash-Out Refinance: This option allows veterans to refinance their existing mortgage while accessing their home’s equity. Funds received from this type of loan can be used for home renovations, debt consolidation, education expenses, or other financial needs.

VA Loan Requirements in South Dakota

VA loan requirements in South Dakota are set by both the VA and the particular lender you’re working with. Some of the requirements you’ll have to satisfy to qualify for a VA loan include:

  • Service status: Veterans must fulfill a minimum period of active duty, the duration of which varies depending on their service dates.
  • Credit and income requirements: While VA loans offer more lenient credit requirements, it’s important to maintain a minimum credit score and demonstrate steady income to ensure repayment capability. In most cases, borrowers should have a minimum credit score of 550 in order to qualify for a VA loan through Griffin Funding.
  • Certificate of Eligibility (COE): Applicants need to obtain a Certificate Of Eligibility, which confirms to lenders that they meet the VA loan service requirements.
  • Property requirements: The purchased home must be intended as the primary residence and comply with safety and livability standards set by the VA. Both a VA appraisal and home inspection are required for those taking out a VA purchase loan.

How to Get a VA Loan in South Dakota

To get a VA mortgage loan in South Dakota, follow these steps:

  • Determine eligibility: Confirm your eligibility for a VA loan by meeting the service requirements set by the U.S. Department of Veterans Affairs (VA).
  • Obtain Certificate of Eligibility (COE): Apply for a COE through the VA or with the help of your lender. This document verifies your eligibility for a VA loan.
  • Choose a lender: As an experienced VA lender, Griffin Funding can guide you through the process, whether you’re buying for the first time or refinancing.
  • Pre-approval: Complete a loan application and provide necessary financial documentation for pre-approval.
  • Find a home: Work with a real estate agent to find a suitable home within your budget.
  • Make an offer: Make an official offer on the chosen property.
  • VA appraisal and underwriting: The lender orders a VA appraisal to determine the property’s value and completes underwriting to assess your loan application.
  • Closing: Once the loan is approved, attend the closing to sign documents and finalize the purchase.

See If You Qualify for a VA Loan in South Dakota

One of Griffin Funding’s goals is to help South Dakota’s veterans and service members make the most of VA loan benefits. Our expertise and dedication ensure a smooth, efficient process, allowing you to focus on finding your dream home.

If you’re looking for a lender that can help you get the most out of your VA loan, look no further than Griffin Funding. In addition to providing first-rate customer service and support, we also offer valuable resources such as the Griffin Gold app. With this app, you can compare home financing options, manage your finances, access easy-to-use tools like our VA loan calculator, and more.

Locking in a VA home loan in South Dakota does not need to be an entirely overwhelming process. Reach out today or apply online and we’ll get you one step closer to finding your dream home.