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Outstanding Service, Excellent Programs, and Low Rates!
Whether you are a first-time home buyer or have owned several homes, you have come to the right place for information and financing! Our wide variety of mortgage loans offer you many choices and advantages, including competitive rates and some of the lowest closing costs in the area!
Our philosophy is to take a customized approach to your mortgage. We will never try and fit you into a one-size-fits-all loan. Instead, we will work with you to find the perfect loan for your budget and needs. You can take comfort in knowing that we will not place you in products that are not in your best interest. As a result, we are well positioned to meet current and future market challenges. You can be confident your loan is financially sound and safe with us! You see, there really is a difference!
Below is a list of the loans we offer along with the definitions of each. You may click on the list or scroll down and read through the information on each loan. If you have any questions, our Mortgage Specialists are happy to help! Call (605) 343-0891 (Rapid City), (605) 718-4002 (Spearfish), (605) 718-2002 Hot Springs, or (800) 482-2428 for more information.
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In-House Loans
An In-House Loan is a loan that remains with, and is serviced by, Black Hills Federal Credit Union for the entire term of the loan. We are one of the few local lenders that carry mortgages in-house! During the life of your loan, if you have questions, we are right here to assist you.
We’re the Black Hills Loan Leader! Here are a few advantages to having a loan with BHFCU:
- Local, personal attention to any questions regarding your loan
- Flexible terms - can be paid off anywhere from 5 to 30 years**
- Payments can be made weekly, bi-weekly (these two options are a fantastic way to pay off your loan faster, saving you money that would go to interest) or monthly – whatever best meets your needs
- Dividends paid on escrow balance - a great perk for having your loan with BHFCU! (We pay interest monthly on the funds collected for payment of home taxes and insurance)
- 100% financing (no down-payment required for qualified borrowers)
- No pre-payment penalties
- Our mortgage insurance is less than industry standards
Fixed Rate Conventional Loan
A steady and consistent loan with a rate that is locked in, which means your Principal and Interest payment remains the same for the entire life of the loan. This is a terrific loan if you are planning on staying in your home long-term or if you are not comfortable with your interest rate eventually adjusting.
3/1, 5/1, 7/1, 10/1 ARM loan
What is an ARM? “ARM” stands for Adjustable Rate Mortgage. With this type of loan, your rate is locked in for 3, 5, 7, or 10 years and then adjusts once a year (“/1”) after your initial “locked in" period. Your rate can adjust up or down depending on the limits of your loans terms and the position of the market. Our ARM loans are not the ones you’ve been hearing about lately in the news. These loans are great for buyers who want to lock in a low rate for a set number of years. A buyer may chose to refinance (pay off the existing loan with a new loan, especially if the interest rate is lower) at any time to a fixed rate.
Fixed Rate Jumbo Loan
For loan amounts that exceed $417,000 - just like a conventional loan, the rate stays the same throughout the term of the loan. Black Hills Federal Credit Union offers the rate for these loans consistently lower than the competition!
Construction Loans
Building a new home? This loan provides a great, money-saving convenience for you! By combining the construction loan with a long-term mortgage loan, you pay only one set of closing costs! Your home must be built within 6 months and you will be charged interest during the construction period only on the amount of money disbursed.
Building Site Loan
A Building Site Loan helps you purchase the land today that you intend to build a residence on in the future! You can buy up to 80 acres within our lending area*, and you can do it with a minimal down payment, or even 0% down with good credit!
BHFCU HLPR (Home Loan Payment Relief)
BHFCU HLPR loan is designed for the first-time homebuyers. This loan is “income driven” and is restricted to an income that is at or below the area median income. This loaa 3/1 ARM, this loan amount is priced at 1% below the national average for a similar loan. Only 3% down payment is required and with a high credit score (680 or above), you can eliminate private mortgage insurance!
Streamlined Refinance
A Streamlined Refinance allows members, who already have an existing, owner-occupied First Mortgage with BHFCU, to modify their fixed or adjustable rate mortgage to a lower rate with extremely reduced closing costs, saving them money now and in the future!
Combination Manufactured Home/Land Loans
These loans are used for purchasing or refinancing a manufactured home with land. You may purchase a single or multiple-width mobile home up to 20 model years old with up to 80 acres of land (within our lending area*). These loans require 20% down and offer several options for financing, depending on how the home is secured to the foundation.
Rentals Loans
We have loans available for the purchase or refinance of a 1-4 family unit, rental property. A Rental Loan requires a 10% down payment and is typically amortized up to 25 years with a 15 year balloon. Amortization means that you are paying your mortgage as if you were on a fixed 25 year mortgage, making your payments lower. However, after your 15 year term is up, you are required to pay the balance of the mortgage. You may pay the amount or choose to refinance at that time.
Immediate Family Member Loans
These loans allow members the opportunity to purchase or refinance a home to be used by an immediate family member (parents, siblings, children) who might not be able to qualify for the loan themselves. This loan requires a 10% down payment with an amortization up to 25 years with a 15 year balloon. The home must be a single family dwelling.
Second/Vacation Home
Would you like to buy a vacation home in the beautiful Black Hills? This program is designed to allow members to purchase or refinance a vacation home or a second home within our lending area*. The down payment required is as little as 10% with an amortization up to 25 years with a 15 year balloon. The home must be a single family dwelling. Combination Mobile Home/Land Loans available!
Secondary Market Loans
These loans do not stay with Black Hills Federal Credit Union. Instead, they are owned and serviced by an outside mortgage service company. For those who qualify for an FHA, VA, or South Dakota First Time Home Buyer loan, or for those with low credit scores (below 600), we work as the “middle man” to help you acquire a home loan that fits your needs!
Fixed Rate Conventional Loan
A steady and consistent loan with a rate that is locked in, which means your Principal and Interest payment remains the same for the entire life of the loan. This is a terrific loan if you are planning on staying in your home long-term or if you are not comfortable with your interest rate eventually adjusting. Terms and conditions may differ from BHFCU’s, depending on the outside mortgage service company’s rules and regulations.
Adjustable Rate Mortgage (ARM) Loan
What is an ARM? “ARM” stands for Adjustable Rate Mortgage. With this type of loan, your rate is locked in for 3, 5, 7, or 10 years and then adjusts once a year (“/1”) after your initial “locked in period. Your rate can adjust up or down depending on the limits of your loans terms and the position of the market. These loans are great for buyers who want to lock in a low rate for a set number of years. A buyer may chose to refinance (pay off the existing loan with a new loan, especially if the interest rate is lower) at any time to a fixed rate. Terms and conditions may differ from BHFCU’s, depending on the outside mortgage service company’s rules and regulations.
VA (Veterans Administration) Loan
This loan was created to help veterans purchase and retain homes in recognition of their service to the nation and are guaranteed by the VA. This loan does not require a down payment if the veteran has “full entitlement”, nor does it require private mortgage insurance (mortgage insurance provided by non-government insurers that protects a lender against loss if the borrower can no longer make payments).
FHA (Federal Housing Administration) Loans
This loan is insured by the Federal Housing Administration and is geared toward providing mortgages to home buyers and families with moderate to low income. Private mortgage insurance and cash reserves are not required and your down payment may be as low as 3%!
South Dakota Housing Loans
A South Dakota Housing Development Authority (SDHDA) loan is available to first-time home buyers, or buyers who have not owned real estate in the past three years. This program is designed for the purchase of new construction or an existing home. SDHDA loans cannot be used for refinancing your current home. There are income restrictions with this loan that change periodically based on income and family size. A plus to this loan is that you can start at 0% down! Ask us about housing grants that may help with down payment or closing costs.
* Lending area includes Pennington, Fall River, Custer, Lawrence, and Meade Counties as well as the city of Spearfish.
** Please click here for more information on terms of repayment and Annual Percentage Rates.
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