South Dakota FHA Loan Requirements 2026
2026 FHA loan limits for all 66 South Dakota counties, including Lawrence County’s higher limit, one-to-four unit figures, HUD’s credit and minimum investment rules, how FHA mortgage insurance works, and how FHA pairs with South Dakota Housing programs.
South Dakota FHA Loan Limits by County (2026)
FHA sets its limits by county and by the number of units in the property. In South Dakota, 65 of 66 counties sit at the CY2026 national floor, including the Sioux Falls and Rapid City metro areas. Lawrence County, in the Spearfish area, is slightly higher.
| County Group | One Unit | Two Units | Three Units | Four Units |
|---|---|---|---|---|
| 65 counties (national floor) | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Lawrence (Spearfish area) | $541,650 | $693,400 | $838,150 | $1,041,650 |
Confirm any county before relying on it at the HUD FHA Mortgage Limits lookup, selecting Limit Type “FHA Forward” and Limit Year CY2026.
South Dakota FHA Loan Requirements
FHA rules are federal, so they do not change between South Dakota and any other state. What changes is the loan limit and the price of the homes you are applying them to.
| Requirement | Standard | Notes |
|---|---|---|
| Minimum required investment | 3.5% of the adjusted value | Required for FHA to insure the maximum mortgage amount |
| Credit score 580 or above | Eligible for maximum financing | Lenders may apply a higher overlay |
| Credit score 500–579 | Maximum 90% loan-to-value | Effectively 10% down |
| Credit score below 500 | Not eligible | HUD minimum decision credit score |
| Mortgage insurance | Required | Both upfront and annual — see below |
| Loan limit | $541,287 for one unit | $541,650 in Lawrence County |
Sources: HUD on the minimum required investment and on minimum decision credit scores.
FHA Mortgage Insurance Premiums (MIP)
Every FHA loan carries two mortgage insurance charges: a one-time upfront premium and an annual premium paid monthly. These are national figures set by HUD, not South Dakota figures.
| Premium | Rate | How It Is Paid |
|---|---|---|
| Upfront (UFMIP) | 1.75% of the base loan amount | One-time premium |
| Annual, base loan up to $726,200, LTV above 95% | 55 basis points | Monthly, for the life of the loan |
| Annual, base loan up to $726,200, LTV above 90% up to 95% | 50 basis points | Monthly, for the life of the loan |
| Annual, base loan up to $726,200, LTV 90% or below | 50 basis points | Monthly, for 11 years |
| Annual, base loan above $726,200, LTV above 95% | 75 basis points | Monthly, for the life of the loan |
| Annual, base loan above $726,200, LTV above 90% up to 95% | 70 basis points | Monthly, for the life of the loan |
| Annual, base loan above $726,200, LTV 90% or below | 70 basis points | Monthly, for 11 years |
These rates apply to loans with a term longer than 15 years. South Dakota’s one- and two-unit FHA limits are below $726,200, so the higher bands apply only to three- and four-unit homes. Source: HUD Mortgagee Letter 2023-05.
FHA vs. Conventional in South Dakota
With South Dakota’s conforming limit at $832,750 in every county, conventional financing reaches higher than FHA’s one-unit limit everywhere in the state.
| Factor | FHA | Conventional |
|---|---|---|
| Minimum down payment | 3.5% | 3%–20% (practical range) |
| Practical credit threshold | 580 | 620 |
| Mortgage insurance | Upfront plus annual; annual for the life of the loan above 90% LTV | Private mortgage insurance, which can be removed as equity builds |
| 2026 South Dakota limit | $541,287; $541,650 in Lawrence County | $832,750 in all 66 counties |
| Best suited to | Thinner credit, limited savings | Stronger credit, or avoiding permanent mortgage insurance |
See our guide on how to remove PMI for how private mortgage insurance ends on a conventional loan.
Combining FHA with SD Housing
An FHA loan and SD Housing’s programs are not alternatives. SD Housing’s loans are made as government loans — including FHA — or conventional loans through its participating lenders, and its Fixed Rate Plus options add assistance.
| SD Housing Program | Works With FHA | What It Adds |
|---|---|---|
| First-Time Homebuyer | Yes — FHA is one of SD Housing’s government loan types | 30-year fixed rate within county income limits and the $410,000 price limit |
| Fixed Rate Plus 3% or 5% | Yes, with an SD Housing first mortgage | 3% or 5% of the loan as a 0% second mortgage |
| Repeat Homebuyer | Yes | Income up to $124,080 or $144,760; $460,000 price limit |
Pairing FHA with SD Housing means meeting both sets of rules: FHA’s minimum investment and credit thresholds, and SD Housing’s 620 minimum credit score, income limits and price limit. Check current terms with South Dakota Housing.
