How you spend your HELOC funds depends on your financial needs. You can spend the loan on medical bills, home renovations, education costs and debt consolidation, among other things. To qualify for a HELOC, you must be a homeowner with considerable home equity.

Based on a MoneyGeek analysis, Bank of America is the best overall HELOC lender in South Dakota due to its low interest rates and discounts. However, the best lender may vary across different borrower profiles.

Comparing rates and other terms from different lenders will help you secure the best deal available in the state.

Home Equity Line of Credit (HELOC) Rates for 2023

The following table outlines various details about HELOC lenders, including their repayment terms and equity rates, as updated by MoneyGeek in May 2022.

Note that the home equity line of credit rates and other lender information keep varying, although MoneyGeek endeavors to update the table regularly to ensure borrowers find the most current data.

Loan Amount
Min. Credit Score Requirement
Repayment Terms
Annual Fees
Pre-Approval Time

3.75% to 18%

$25,000 to $1,000,000


10-year draw period
and 20-year repayment period



Not specified

Not specified

Not specified

Not specified

Not specified

Not specified

1.99% special
introductory variable
APR for 6 months,
then as low as
4.35% variable

$25,000 to $1,000,000

Not specified

10-year draw period,
20-year repayment period

Not specified

Not specified

3.65% to 8.80%

$15,000 to $750,000


10-year draw period,
unspecified repayment period


Not specified

Starting at 3.99%

$10,000 to $500,000

Not specified

10-year draw period
and 20-year repayment period


Not specified

Starting at 4.64%

$10,000 to $500,000

Not specified

10-year draw period
and 20-year repayment period


24 hours

Starting at 3.50%

$15,000 to $400,000


5 to 30 years

3% to 4.99%

24 hours

Starting at Prime - 0.50%

Starting at $17,500

Not specified

10-year draw period,
15-year repayment period


Not specified

Starting at 3.34%

Starting at $25,000


Not specified


Not specified

3.49% for 6 months
(4.08% thereafter)

Starting at $5,000

Not specified

15-year draw period
with 15-year repayment period


24 hours

3.75% to 10.63% variable

$10,000 to $500,000

Not specified

10-year draw period,
and then 20 years for repayment


Not specified

MoneyGeek’s Picks for Best HELOC Lenders in South Dakota

MoneyGeek cares about you, the consumer, and aims to help you secure the best home equity line of credit (HELOC) provider for your financial goals and current situation.

It’s important to note that apart from most national banks, a good number of lenders do not offer HELOC loans. If a national lender denies you a HELOC, MoneyGeek recommends that you check with your local credit union for other available options.

Best Overall HELOC Lender in South Dakota: Bank of America

  • Bank of America

    Low introductory APR for six months.

    • 7.49% (introductory rate) then 9.90%APR Range
    • UndisclosedMinimum Credit Score
    • Generally $25,000 to $1,000,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • NoneAnnual Fees
    • UndisclosedPre-Approval Time

    Bank of America

Best HELOC Lender for Good Credit in South Dakota: U.S. Bank

  • U.S. Bank

    Application by phone, online or in person at one of the bank branches.

    • 8.95% to 12.70%APR Range
    • 660Minimum Credit Score
    • $15,000 to $750,000 ($1 million in California)Loan Amount Range
    • 10-year draw period; up to 30 years repayment periodsRepayment Terms
    • Up to $75Annual Fees
    • UndisclosedPre-Approval Time

    U.S. Bank

Best HELOC Lender for Bad Credit in South Dakota: Figure

  • Figure

    Figure requires a fair credit score of 620.

    • 6.10% to 14.74%APR Range
    • 640 (680 for investment properties or second homes)Minimum Credit Score
    • $20,000 to $400,000Loan Amount Range
    • 5 to 30 yearsRepayment Terms
    • NoneAnnual Fees
    • 24 hoursPre-Approval Time


Best HELOC Lender for Competitive Rates in South Dakota: PenFed

  • PenFed Credit Union

    Low 0.99% introductory APR in the first six months.

    • Starting at 8.625%APR Range
    • 680Minimum Credit Score
    • $25,000 to $500,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • $99Annual Fees
    • UndisclosedPre-Approval Time

    PenFed Credit Union

HELOC vs. Home Equity Loans

A home equity line of credit (HELOC) is quite different from a home equity loan (HELOAN), although both offer funding for major expenses within the home.

A home equity loan is granted in a lump sum against the value of your home. It features fixed interest rates and repayment terms, and is ideal for individuals who need financing with predictable repayment terms.

A home equity line of credit works the same as a credit card. Eligible homeowners withdraw funds up to a specific limit during the draw period as stipulated in the lender’s terms. Unlike HELOANs, HELOCs have variable interests; although, some lenders allow you to convert to a fixed-rate option. The table below outlines the difference between HELOCs and HELOANs in more detail.

Home Equity Loan

Interest Rate

Adjustable interest rate,
but fixed-rate options are available

Fixed interest rate

Monthly Payment

Changes depending on
the amount of money borrowed

Fixed monthly payments

Repayment Terms

During the draw period, borrowers pay
interest on the money they borrowed;
after the draw period, they repay any
principal owed in addition to interest

Repayment starts as soon as
the money is given to the borrower

Fund Disbursements

Line of credit

Lump sum delivery

How to Apply for a HELOC

Getting a HELOC is very easy since most lenders carry out the entire process online. All you need is to provide the required personal information and then wait for the lender to approve your application.


Determine how much you need

Before submitting your application for a HELOC, you need to budget well and determine the exact amount you need. Home equity line of credit loans are ideal for funding large expenses such as home improvement, education and debt consolidation. A HELOC may not be the best option if you need funding for small projects.


Assess your financial standing

Apart from determining how much you need, you should evaluate your financial situation. Will you be able to repay the loan? How financially stable are you? Check whether your income level and credit score meet the requirements of your ideal lender. Most companies use these factors to rate your eligibility to repay the loan.


Shop around and compare lenders

The best way to find an option with the best terms is by comparing offerings across lenders. Check out the APR, repayment periods, credit score, income requirements and other essential features. Choosing the right lender will ensure you do not pay additional fees as you take advantage of the low rates.



Most lenders allow you to submit a HELOC application online. However, some may require you to call or visit one of their offices. To save time, ensure you have all the requisite information before starting the application process. Some lenders may ask for verified documents such as proof of income and mortgage statements.


Use funds wisely

After receiving the funds, keep track of the repayment terms and your expenses. MoneyGeek recommends limiting the funds to the intended expense to avoid falling into further debt.

Frequently Asked Questions About HELOCs

A home equity line of credit (HELOC) can help you pay for unexpected and large expenses for your home. MoneyGeek answered some frequently asked questions about HELOCs to get you started.