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South Dakota Reverse Mortgages
A South Dakota reverse mortgage can help you achieve the financial freedom you deserve while living in the state you love.
Select State:
South DakotaUse the interactive map or the state selector to find more reverse mortgage information about your state.
How a Reverse Mortgage Works in South Dakota
If approved for a South Dakota reverse mortgage, you can use the proceeds to:
GoodLife’s reverse mortgage guide will walk you through what you need to know about the HECM program and how it might work for your retirement finances.
Reverse Mortgage Qualifications & Requirements
South Dakota reverse mortgages are overseen by the Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA). That means they must abide by the federal regulations these administrations have put in place:
Borrowers must be at least 62 years of age
Be sure to review our page on reverse mortgage eligibility to fully understand the requirements. If you still have questions, a Goodlife Reverse Mortgage Specialist will be happy to speak with you in more detail.
Consultation
During the first stage, we will review the South Dakota reverse mortgage qualifications with you, and help you decide whether this form of funding is best for your situation.
Counseling
HECM applicants are required by the HUD to meet with an approved third-party counselor to help borrowers fully understand the implications of their decision to take out a reverse mortgage.
Application
An FHA-approved appraiser will inspect your home to ensure it meets standards, then appraise its value to determine the value of your loan.
Funding
After your application is completed, submitted, and approved, you may choose to receive your loan proceeds as a lump sum, a line of credit, or as a series of monthly payments.
Reverse Mortgages in South Dakota: FAQs
What if I still have an existing mortgage?
Borrowers who own significant equity in their homes can still apply for a reverse mortgage if they have an existing mortgage. However, HECM funding will first be used to pay down the outstanding mortgage debt, before any remaining funds can be disbursed to borrowers.
Are there monthly payments required on an SD reverse mortgage?
Monthly payments are not required on an SD reverse mortgage until a maturation event, like the death of the borrower or their departure from the home, at which point the loan becomes Due and Payable. Note that borrowers do have the option to begin making payments prior to a maturation event if they desire.
Which properties in South Dakota qualify for a reverse mortgage?
Several types of property are eligible for a South Dakota reverse mortgage:Â
- Single-family homesÂ
- Townhomes
- Two- to four-unit properties
Properties with more than four units are considered commercial and are ineligible for a HECM. Per the requirement that states the property must serve as your primary residence, vacation homes are also ineligible.
Download the Reverse Mortgage Guide
Fill out the form to download our comprehensive GoodLife Guide to Reverse Mortgages or call to speak with a GoodLife Specialist!
