FHA Loans in South Dakota
The FHA loan limit in South Dakota is $472,030 for a single-family home. FHA loans require just 3.5% down payment and accept credit scores as low as 580.
South Dakota's FHA limits at the baseline comfortably cover the state's housing market, including the most desirable Sioux Falls neighborhoods. FHA loans are popular with first-time buyers in both Sioux Falls and Rapid City, where affordable prices make the 3.5% down payment very accessible. South Dakota's relatively new housing stock (particularly in Sioux Falls's rapidly growing east and south sides) passes FHA appraisals with few issues.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: HUD, Zillow
FHA Loan Limit
$472,030
Min Down Payment
$16,521
3.5%
Est. Monthly Payment
$3,595
PITI + MIP
Min Credit Score
580
for 3.5% down
Monthly Payment Breakdown at FHA Limit
| Home Price | $472,030 |
| Down Payment (3.5%) | $16,521 |
| Loan Amount | $455,509 |
| Monthly Costs | |
| Principal & Interest (6.5%) | $2,879 |
| FHA Mortgage Insurance (MIP) | $209 |
| Property Tax | $389 |
| Homeowners Insurance | $118 |
| Total Monthly Payment | $3,595 |
* Estimated at 6.5% interest rate, 30-year fixed. MIP at 0.55% annual. Property tax at South Dakota's average rate of 0.99%. Includes upfront MIP of 1.75% rolled into loan.
FHA Loan Requirements
Credit Score
580+ for 3.5% down payment. 500-579 requires 10% down.
Down Payment
Minimum 3.5% of purchase price. Can be a gift from family.
Debt-to-Income
Maximum 43% DTI ratio (up to 50% with compensating factors).
Property Requirements
Must be primary residence. FHA appraisal required (stricter than conventional).
Employment
2 years of steady employment history. Self-employed need 2 years of tax returns.
Mortgage Insurance
1.75% upfront MIP + 0.55% annual MIP. Required for life of loan (unless refinanced).
FHA vs Conventional in South Dakota
| Feature | FHA | Conventional |
|---|---|---|
| Min Down Payment | 3.5% | 3-5% |
| Min Credit Score | 580 | 620 |
| Mortgage Insurance | Life of loan | Until 20% equity |
| Loan Limit (South Dakota) | $472,030 | $766,550+ |
| Best For | Lower credit, small savings | Good credit, 20%+ down |
