South Dakota VA Loan Requirements 2026
How VA entitlement works in South Dakota and why full entitlement carries no county loan cap, the 2026 funding fee tables and exemptions, Ellsworth Air Force Base, and how a VA loan pairs with South Dakota Housing programs.
VA Loan Eligibility in South Dakota
VA eligibility is federal and does not vary by state. Your Certificate of Eligibility (COE) shows the entitlement your lender will use.
| Category | Minimum Service |
|---|---|
| Active-duty service members | At least 90 continuous days |
| Veterans | Depends on when you served |
| National Guard | 90 days of non-training Title 10 active duty, or 6 creditable years |
| Reserve | 90 days of non-training active duty, or 6 creditable years in the Selected Reserve |
| Surviving spouses | Receiving or eligible for certain DIC, or spouse of a service member missing in action or held as a prisoner of war |
Full service rules, discharge exceptions and COE requests are on the VA home loan eligibility page.
South Dakota Military Installations
Ellsworth Air Force Base is home to the 28th Bomb Wing. It sits 10 miles east of Rapid City, next to the City of Box Elder, and is one of only two B-1 Main Operating Bases in the world. Active-duty members qualify for VA loans under the service rules above.
| Installation | Unit | Notes |
|---|---|---|
| Ellsworth Air Force Base | 28th Bomb Wing | One of two B-1 Main Operating Bases; designated B-21 Raider Main Operating Base #1 in June 2021 |
Source: the 28th Bomb Wing fact sheet.
How VA Entitlement Works in South Dakota
A VA guaranty lets most eligible buyers purchase with no down payment and no private mortgage insurance. With full entitlement, VA’s bonus entitlement usually covers 25% of the amount a lender is willing to lend, so the county limit does not cap your loan — your lender’s approval does. If part of your entitlement is already in use, your remaining entitlement is based on the county loan limit where you buy.
| Entitlement Status | Does a County Limit Apply? | Down Payment |
|---|---|---|
| Full entitlement | No — the lender’s approval sets the amount | Usually none |
| Partial entitlement | Yes — remaining entitlement is based on the county loan limit | May be required above what your remaining entitlement covers |
| County Group | Conforming Limit (partial entitlement reference) |
|---|---|
| All 66 South Dakota counties | $832,750 |
VA says its home loan limits are the same as FHFA’s conforming loan limits and that you use the one-unit limit even for a multi-unit property. See VA’s home loan entitlement and limits page. The maximum VA loan on a property is the lower of the appraised value or the purchase price.
South Dakota VA Loan Requirements
| Requirement | Standard | Notes |
|---|---|---|
| Down payment | Usually none with full entitlement | The lender determines the loan amount |
| Credit score | 580–620 (lender overlay) | VA does not require a minimum score |
| Seller concessions | Up to 4% of reasonable value | Seller credits for closing costs are not limited |
| Funding fee | Varies — see below | Waived for exempt borrowers |
| Mortgage insurance | None | No private or monthly mortgage insurance |
2026 VA Funding Fee
The funding fee is a one-time charge on a VA-backed loan. It falls as your down payment rises.
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
| Refinance Type | First Use | Subsequent Use |
|---|---|---|
| Cash-out refinance | 2.15% | 3.3% |
| Interest Rate Reduction Refinance Loan (IRRRL) | 0.5% | 0.5% |
Who is exempt
- Veterans receiving VA compensation for a service-connected disability
- Veterans eligible for that compensation but receiving retirement or active-duty pay instead
- Surviving spouses receiving Dependency and Indemnity Compensation (DIC)
- Service members with a proposed or memorandum rating before closing based on a pre-discharge claim
- Active-duty members who provide evidence of a Purple Heart on or before closing
Veterans with VA disability ratings, surviving spouses receiving DIC, and active-duty Purple Heart recipients are exempt from the funding fee. Cash-out refinance funding fees are 2.15% for first use and 3.30% for subsequent use; IRRRLs carry a 0.5% fee. Confirm current rates at the VA’s official funding fee page.
Pairing a VA Loan with SD Housing
A VA loan and SD Housing’s programs are not mutually exclusive. SD Housing’s loans are made as government loans — including VA — through participating lenders, and SD Housing offers a Veterans Waiver on its first-time homebuyer requirement.
| SD Housing Program | How It Works with VA |
|---|---|
| First-Time Homebuyer | VA is one of SD Housing’s government loan types; county income limits and a $410,000 price limit apply |
| Veterans Waiver | Ask a participating lender whether the waiver lets you use the first-time program after owning a home |
| Fixed Rate Plus 3% or 5% | Assistance of 3% or 5% of the loan as a 0% second mortgage |
Because a VA loan usually requires no down payment with full entitlement, the assistance is most useful for closing costs — and it is repaid when you sell or refinance. Check current terms with South Dakota Housing.
