South Dakota Mortgage Guide 2026
Everything a South Dakota buyer needs in one place: 2026 FHA and conforming loan limits across all 66 counties, SD Housing loans and down payment assistance, how South Dakota property taxes compare, and a closing cost breakdown built on the seller-paid transfer fee and statutory recording fees.
South Dakota Loan Limits by County (2026)
South Dakota’s conforming loan limit is $832,750 in all 66 counties. FHA sits at the national floor of $541,287 in 65 counties, including the Sioux Falls and Rapid City metro areas; the one exception is Lawrence County, part of the Spearfish area, at $541,650.
| Area | Conforming Limit | FHA Limit | Notes |
|---|---|---|---|
| Sioux Falls metro (Lincoln, McCook, Minnehaha, Turner) | $832,750 | $541,287 | National FHA floor |
| Rapid City metro (Custer, Meade, Pennington) | $832,750 | $541,287 | National FHA floor |
| Lawrence County (Spearfish) | $832,750 | $541,650 | The only county above the FHA floor |
| All other counties | $832,750 | $541,287 | National FHA floor |
FHA limits come from HUD and conforming limits come from FHFA — they are set by different agencies and are different numbers. Verify any county at the HUD FHA Mortgage Limits lookup. Figures above are CY2026, retrieved September 2026.
Comparing South Dakota Loan Programs
Most South Dakota buyers choose between five routes. The credit scores below are practical lender thresholds rather than published program minimums, except where a program sets its own.
| Program | Min Down | Min Credit | Best For |
|---|---|---|---|
| FHA | 3.5% | 580 | Buyers with thinner credit or limited savings |
| VA | 0% | 580–620 (lender overlay) | Veterans, active duty, and eligible spouses |
| USDA | 0% | 640 (lender overlay) | Eligible rural South Dakota addresses within income limits |
| Conventional | 3%–20% | 620 | Stronger credit, or avoiding FHA’s upfront and annual premiums |
| SD Housing First-Time Homebuyer | Depends on the mortgage insurance, usually around 3% and up | 620 (SD Housing minimum) | First-time buyers within county income limits and the $410,000 price limit |
HUD allows maximum FHA financing at a credit score of 580 or above and limits borrowers between 500 and 579 to 90% loan-to-value (HUD). VA states that it does not require a minimum credit score (VA), and USDA says its guaranteed program has no credit score requirement (USDA Rural Development). SD Housing’s current minimum is 620 (SD Housing).
South Dakota Housing (SDHDA)
The South Dakota Housing Development Authority, which operates as SD Housing, was created by the Legislature in 1973. It does not lend directly to consumers: its mortgages are made through participating lenders, as government (FHA, VA or USDA Rural Development) or conventional loans.
| Program | Who It Is For | Key Terms |
|---|---|---|
| First-Time Homebuyer | Buyers who have not owned a home in the past 3 years; a Veterans Waiver is available | 30-year fixed rate; county income limits; $410,000 price limit |
| Fixed Rate Plus 3% / 5% | First-time buyers who need help with upfront costs | 3% or 5% of the loan as a 0% second mortgage |
| Repeat Homebuyer | Repeat buyers, and first-time buyers above the first-time limits | Income up to $124,080 (2 or fewer) or $144,760 (3 or more); $460,000 price limit |
Down payment and closing cost assistance
SD Housing’s Fixed Rate Plus options pair a 30-year fixed-rate mortgage with assistance equal to 3% or 5% of the loan amount for the down payment and closing costs. The assistance is a 0% second mortgage that is due when you sell or refinance, and the interest rate is slightly higher than on the standard fixed-rate loan.
First-time homebuyer income limits are set by county: $103,400 for households of 2 or fewer and $118,910 for 3 or more in most counties, up to $119,800 and $137,770 in Stanley County. Check the SD Housing income limits before assuming you qualify.
South Dakota Property Taxes
Dividing the state median annual real estate tax bill of $2,724 by the state median owner-occupied home value of $257,400 gives an estimated effective rate of 1.06%. Sources: Census ACS 2020–2024 5-year table B25103 and table B25077.
That 1.06% is an estimated effective rate derived from two separate medians. It is not the median of individual households’ effective rates, and no single South Dakota household necessarily pays it. Your actual bill depends on your property’s assessed value and the local levies where it sits.
| Home Value | Est. Annual Tax | Monthly Escrow |
|---|---|---|
| $200,000 | $2,120 (Est.) | $177 |
| $250,000 | $2,650 (Est.) | $221 |
| $300,000 | $3,180 (Est.) | $265 |
| $400,000 | $4,240 (Est.) | $353 |
Treat the table above as a planning estimate built from the statewide 1.06% figure, and ask your lender for the actual parcel figure before you commit.
South Dakota Closing Costs
Two sets of South Dakota closing charges are fixed in state law: the real estate transfer fee, which the seller pays, and the register of deeds’ recording fees. Everything else on the closing statement — lender, appraisal, title and settlement charges — is set by the provider.
| Fee | Amount | Set By |
|---|---|---|
| Real estate transfer fee | $0.50 per $500 of value, paid by the seller | SDCL 43-4-21 |
| Recording a deed or mortgage, up to 50 pages | $30 | SDCL 7-9-15 |
| Each page over 50 | $2 | SDCL 7-9-15 |
| Lender, appraisal, title and settlement fees | Set by the provider | Compare Loan Estimates |
SDCL 43-4-21 imposes the transfer fee on the privilege of transferring title and requires the grantor — the seller — to pay it. Recording fees are set statewide by SDCL 7-9-15.
South Dakota Housing Markets
Where you buy in South Dakota changes your USDA and SD Housing income limits more than your loan limits. The table below is a qualitative orientation, not a price guide.
| Area | Market Notes |
|---|---|
| Sioux Falls metro | Lincoln, McCook, Minnehaha and Turner Counties. USDA’s Sioux Falls area limit is $136,500 for 1–4 person households, and SD Housing’s first-time limit in these four counties is $118,700 for 2 or fewer. |
| Rapid City metro | Custer, Meade and Pennington Counties, near Ellsworth Air Force Base. USDA’s limit here is $122,800 for 1–4 person households. |
| Pierre (Hughes and Stanley Counties) | Stanley County has South Dakota’s highest USDA limit at $137,800 and SD Housing’s highest first-time limit. |
| Spearfish (Lawrence County) | The only South Dakota county with an FHA limit above the national floor. |
| Brookings County | USDA’s limit is $130,300 for 1–4 person households, and SD Housing’s first-time limit is $112,200 for 2 or fewer. |
