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Spencer, SD

The Best Mortgage Lenders in Spencer, SD

Compare verified mortgage lenders serving Spencer, South Dakota. Find competitive rates on conventional, FHA, VA, and jumbo loans from experienced professionals.

3
Top Lenders
4.7
Avg Rating
470+
Reviews
11
Loan Types

Available Loan Programs in Spencer

Conventional
FHA
VA
USDA
Jumbo
Construction
Refinance
Construction-to-Perm
Land Loans
Agricultural
First-time Homebuyer

Featured Mortgage Lenders

1

Scott Buechler

First Bank & Trust

★★★★☆
4.8/5

First Bank & Trust is one of South Dakota's most established and trusted financial institutions with a strong presence throughout the state. While based in Sioux Falls, they serve clients across South Dakota including Spencer area. Their mortgage team, led by experienced professionals like Scott Buechler, provides personalized service with deep knowledge of rural and agricultural lending needs. They offer competitive rates and have exceptional customer satisfaction ratings, making them a top choice for Spencer residents seeking reliable mortgage financing with local decision-making.

Experience:25 years
Reviews:150 customer reviews
1100 S Main Ave, Sioux Falls, SD 57104

Loan Types:

ConventionalFHAVAUSDAJumboConstructionRefinance
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2

Mortgage Department

Plains Commerce Bank

★★★★☆
4.7/5

Plains Commerce Bank has built an outstanding reputation for serving South Dakota's rural communities with specialized mortgage products perfect for Spencer area residents. They excel in agricultural and rural property financing with local underwriters who understand the unique needs of smaller communities. Their USDA loan expertise is particularly valuable for Spencer homebuyers, and they're known for competitive rates and flexible terms. With numerous positive reviews highlighting their responsive service and local expertise, they're a premier regional mortgage lender.

Experience:22 years
Reviews:120 customer reviews
201 S Main Ave, Sioux Falls, SD 57104

Loan Types:

ConventionalFHAVAUSDAConstruction-to-PermLand LoansAgricultural
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3

Home Mortgage Team

Great Western Bank

★★★★☆
4.6/5

Great Western Bank has deep roots in the Midwest with extensive experience serving South Dakota communities. They maintain a strong physical presence throughout the region with dedicated mortgage specialists who understand rural housing markets like Spencer. Known for their competitive rates and wide range of loan options, they particularly excel with first-time homebuyer programs and USDA rural development loans. Their long-standing commitment to South Dakota communities and consistently high customer satisfaction ratings make them a reliable choice for Spencer area mortgages.

Experience:85+ years
Reviews:200 customer reviews
100 N Phillips Ave, Sioux Falls, SD 57104

Loan Types:

ConventionalFHAVAUSDAFirst-time HomebuyerRefinanceConstruction
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Frequently Asked Questions

Common questions about mortgage lending in Spencer, SD

Are there any special mortgage programs for first-time homebuyers in Spencer, SD?

Yes, the South Dakota Housing Development Authority (SDHDA) offers several programs, including the First-Time Homebuyer program and the Home™ program, which provide competitive interest rates and down payment assistance. These programs are particularly valuable in Spencer, where they can help bridge the gap for buyers in a market with limited inventory. Local lenders are well-versed in these state-wide programs and can guide you through the application process.

How do property taxes in Spencer, SD, affect my mortgage payment and qualification?

Spencer is located in McCook County, which has a relatively moderate property tax rate compared to national averages. Your lender will calculate an escrow payment for taxes as part of your monthly mortgage payment (PITI). It's important to get an accurate estimate, as McCook County's assessed values and mill levies directly impact your debt-to-income ratio during the loan qualification process.

What is the typical down payment required for a mortgage on a home in Spencer's market?

While 20% down is ideal to avoid private mortgage insurance (PMI), many buyers in Spencer successfully use conventional loans with 3-5% down or FHA loans with 3.5% down. Given the more affordable home prices in Spencer compared to larger cities, saving for a down payment is often more achievable. Local lenders can also discuss USDA Rural Development loans, which may offer 0% down for eligible properties in the area.

Are USDA Rural Development loans a good option for buying a home in Spencer, SD?

Absolutely. Spencer is classified as a rural area by the USDA, making most homes in and around town eligible for USDA Guaranteed Loans. These loans offer 100% financing (no down payment), competitive interest rates, and more flexible credit guidelines. This is a highly popular and practical option for Spencer homebuyers, especially given the town's population and location.

How does Spencer's smaller, rural market influence the home appraisal process for a mortgage?

Appraisals in Spencer can be challenging due to fewer recent comparable sales ("comps"). An appraiser may need to look at sales in nearby towns like Salem or Montrose, which can sometimes lead to valuation discrepancies. It's crucial to work with a lender who uses appraisers familiar with the McCook County market to ensure a fair and accurate property valuation that supports your loan approval.

Mortgage Insights

Finding Your FHA Loan Expert in Spencer, South Dakota

If you're starting your home search in the close-knit community of Spencer, South Dakota, you might be exploring an FHA loan as your path to homeownership. This popular government-backed loan is a fantastic option for many first-time buyers, thanks to its lower down payment and more flexible credit requirements. But the key to a smooth process isn't just searching for "FHA loan officer near me"—it's about finding the right local professional who understands our unique market.

In Spencer, the housing market presents both opportunity and challenge. You might find more affordable price points compared to larger South Dakota cities, but inventory can be limited. A skilled local FHA loan officer does more than just process paperwork; they become your strategic partner. They understand the value of a well-maintained older home on a spacious lot versus a newer construction, and they can accurately advise on what will pass a mandatory FHA appraisal. This local insight is crucial, as an FHA appraiser will assess the property for safety, security, and soundness—factors that are especially important in a rural setting.

When looking for your expert, don't just focus on proximity. Look for a loan officer with proven experience with FHA loans in smaller, rural communities. They should be well-versed in handling properties with private wells and septic systems, which are common here. Ask potential officers: "How many FHA loans have you closed in McCook County or the surrounding area?" Their answer will tell you a lot.

From a state-wide perspective, South Dakota offers a fantastic advantage for all homebuyers: no mortgage recording tax. This can save you money at closing. While there aren't state-specific down payment assistance programs that exclusively pair with FHA, your loan officer can help you explore other local or national programs for which you might qualify. They can also be your guide through the USDA Rural Development loan program, which is another excellent zero-down-payment option for eligible buyers in a town like Spencer and could be a perfect alternative or point of comparison.

Your actionable first step is to shift your search from a generic online query to targeted local outreach. Ask for referrals from Spencer real estate agents who regularly work with first-time buyers. Contact local banks and credit unions in nearby towns like Salem or Mitchell; they often have loan officers who serve our area and possess the community knowledge you need. When you speak to a candidate, come prepared with questions about turn-around times, their communication style, and their familiarity with the specific quirks of rural properties.

Buying a home in Spencer is about investing in a peaceful, community-oriented lifestyle. Partnering with an FHA loan officer who gets that—and gets the details of our market—will make your journey to a front porch in Spink County far more confident and successful.

Nearby Cities

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Why Choose a Mortgage Lender in Spencer?

Local Market Knowledge

Lenders who understand Spencer's housing market can offer better guidance and competitive rates.

Multiple Loan Options

Access to conventional, FHA, VA, USDA, and jumbo loans tailored to your financial situation.

Proven Track Record

Work with lenders who have years of experience and hundreds of satisfied customers in South Dakota.

Ready to Find Your Perfect Mortgage Lender?

Connect with top-rated mortgage professionals in Spencer and get competitive rates on your home loan.