Skip to content
Purchase Mortgage Loan
Get Pre-Approved

DSCR loans in South Dakota

Quick answer

DSCR loans in South Dakota qualify investors on a property's rental income instead of personal income, typically with 20%–25% down and a 660+ credit score.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

DSCR loan snapshot for South Dakota

ItemEstimate
Minimum down payment20%–25%
Minimum credit score660–700
Typical SD home value$236,800
3.5% down on typical home$8,288
20% down on typical home$47,360
Avg. effective property tax1.09%/yr (~$216/mo)
Income for typical home (31% rule)$76,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

Which South Dakota programs pair with DSCR loans?

  • First-Time Homebuyer Program: Fixed-rate loans for first-time buyers within limits.
  • Fixed Rate with Down Payment Assistance: A first mortgage paired with assistance for down payment and closing costs.

Details and current limits: South Dakota Housing.

How is DSCR calculated?

Lenders divide the property's market rent (from an appraiser's rent schedule or an existing lease) by the full monthly payment: principal, interest, taxes, insurance and any HOA dues. Example: $2,400 rent ÷ $2,000 payment = 1.20 DSCR.

Typical DSCR loan requirements

  • Down payment: 20%–25% (sometimes 15% for strong files).
  • Credit: 660–700 minimum.
  • Reserves: commonly 3–12 months of payments.
  • Property types: 1–4 unit homes, condos and townhomes; some lenders allow short-term rentals.

DSCR loans in South Dakota cities

Sioux FallsRapid CityAberdeenBrookingsWatertownMitchellYanktonHuronPierreSpearfishBox ElderVermillionBrandon

Frequently asked questions

Yes. DSCR loans are available statewide in South Dakota through approved lenders, subject to county loan limits where they apply.

Often yes. South Dakota Housing and local programs frequently pair assistance with FHA, conventional, VA or USDA first mortgages. Eligibility depends on income, price and program rules.

Answer a few questions on Purchase Mortgage Loan and we'll match you with lenders and loan officers in our network who serve South Dakota.

Get matched with DSCR lenders in South Dakota

Answer a few quick questions and get matched with purchase mortgage lenders in your area. Free, and it won't affect your credit score.

Get My Matches

Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.