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FHA loans in South Dakota

Quick answer

FHA loans in South Dakota require 3.5% down with a 580+ credit score; on a $236,800 home that's about $8,288. County FHA limits start at $541,287 for one-unit homes in lower-cost areas.

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

FHA loan snapshot for South Dakota

ItemEstimate
Minimum down payment3.5%
Minimum credit score580
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 FHA 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.

Who is an FHA loan best for?

FHA is designed for buyers with modest savings or credit that's still being built. Because the government insures the lender against loss, lenders can approve borrowers they might otherwise decline.

  • Credit scores between 580 and 680.
  • Debt-to-income ratios up to about 50% with compensating factors.
  • Buyers using gift funds for the entire down payment.
  • Buyers who had a bankruptcy 2+ years ago or foreclosure 3+ years ago.

How much does FHA mortgage insurance cost?

The upfront premium (UFMIP) is 1.75% of the base loan amount and is usually rolled into the loan. The annual premium for most 30-year loans is 0.55% of the balance, paid monthly. With less than 10% down, annual MIP lasts for the life of the loan; with 10% or more, it ends after 11 years. Many owners later refinance into a conventional loan to drop MIP.

FHA loans in South Dakota cities

FHA in Sioux FallsFHA in Rapid CityFHA in AberdeenFHA in BrookingsFHA in WatertownFHA in MitchellFHA in YanktonFHA in HuronFHA in PierreFHA in SpearfishFHA in Box ElderFHA in VermillionFHA in Brandon

Frequently asked questions

Yes. FHA 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.

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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.