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Buying a home

Data from November 2026

Buying a home in South Dakota

A typical home in South Dakota is worth $257,400 (Average 2020–2024). The FHA limit for one unit is $541,287–$541,650 depending on the county. Here is the minimum down payment each loan type asks at that price, every county’s limit, and the state’s assistance programs.

Minimum down payment Limits by county
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Typical home
$257,400
median value, Average 2020–2024
23% less than the U.S.
FHA limit
$541,287–$541,650
one unit, by county
In 1 of the 66 counties, the limit is above the national floor ($541,287).
Conforming limit
$832,750
one unit, 2026 data
Above this amount, the loan is a “jumbo” loan.
Minimum FHA down payment
$9,009
3.5% of a $257,400 home
VA and USDA ask for no down payment if you qualify.

Source: American Community Survey (ACS) 5-year estimates Average 2020–2024 American Community Survey (ACS) 5-year estimates Source: FHA mortgage limits (HUD) Data from 2026 data FHA mortgage limits (HUD) Source: Conforming loan limits (FHFA) Data from 2026 data Conforming loan limits (FHFA)

Down payment

How much each loan asks up front

For a $257,400 home, the typical value in South Dakota. The minimum down payment is each program’s rule. The monthly figure is an example of principal and interest over 30 years at the 7.18% average rate (November 5, 2026): no taxes, insurance or mortgage insurance.

Your price, rate and down payment will differ: run the calculator with your numbers. Closing costs are extra.

Minimum down payment and monthly payment for a $257,400 home in South Dakota

  1. FHA Program rule

    Minimum down3.5%

    In dollars$9,009

    Per month$1,683

    With a credit score of 580 or more. Carries mortgage insurance (MIP) up front and every month.

    HUD Handbook 4000.1 (Update 18), II.A.2.a.iv — Minimum Required Investment · In effect since September 14, 2016

  2. Conventional Program rule

    Minimum down3%

    In dollars$7,722

    Per month$1,691

    3% is the lowest standard option. With less than 20% down you pay private mortgage insurance (PMI) until you have more equity.

    Fannie Mae Selling Guide B5-6-01 — HomeReady Mortgage Loan and Borrower Eligibility · In effect since January 1, 2024

  3. VA Program rule

    Minimum down0%

    In dollars$0

    Per month$1,744

    For veterans, service members and some spouses. No down payment as long as the price is not above the appraisal; charges a one-time funding fee.

    VA: Purchase loan — benefits · In effect since January 1, 2020

  4. USDA Program rule

    Minimum down0%

    In dollars$0

    Per month$1,744

    Only homes in eligible rural areas and households within USDA’s income limit. Finances the full price.

    7 CFR §3555.103 — Maximum loan amount (Guaranteed Rural Housing Program) · In effect since December 9, 2013

  5. ITIN or other Example, not a rule

    Minimum down15%

    In dollars$38,610

    Per month$1,482

    ITIN loans follow no federal rule: each lender sets its own down payment and rate, and usually asks for more. 15% is an example.

Loan limits

FHA and conforming limit in every county

FHA sets the limit by area: 1 of the 66 counties in South Dakota are high-cost and sit above the national floor ($541,287). The conforming limit is the most Fannie Mae and Freddie Mac will buy; above it, the loan is a “jumbo”.

One unit. For 2- to 4-unit homes, each county page has the full table. Source: FHA mortgage limits (HUD) Data from 2026 data FHA mortgage limits (HUD)

Down payment help

South Dakota programs for buyers

2 verified programs that put money toward the down payment or closing costs, or give a tax credit. With the source wording and the date we checked it.

Some help is a grant you never repay; other help is a second loan that is forgiven over the years or repaid when you sell. Each program’s tag says which kind it is.

See all programs

  • Fixed Rate Plus

    Verified November 5, 2026

    South Dakota state authority mortgage with 3% or 5% of the loan for the down payment and closing costs, as a 0% second mortgage with no payments, repaid when you sell or pay off the home

    • Deferred
    See details

  • South Dakota Housing Tax Credit (MCC)

    Verified November 5, 2026

    South Dakota state authority certificate that turns part of your mortgage interest into a credit on your federal taxes, of up to $2,000 a year while you live in the home and keep the original mortgage; for first-time buyers, requested through a participating lender before closing

    • Tax credit
    See details

What the state publishes

South Dakota rules that change the math

Exemptions that lower property tax and taxes paid when the deed is recorded, summarized from the official page each one cites.

Property tax in South Dakota

Exemptions and caps

  • Owner-occupied classification

    If you own the home and live in it as your primary residence, you can receive the owner-occupied classification. Its main benefit is a lower levy (tax rate) for the school general fund. The classification lowers only that school levy; all other levies, such as county, city and school special education, are the same for every type of property.

    SDCL §10-13-39 · South Dakota Department of Revenue (Owner-Occupied Classification tax fact, July 2026) · Verified October 24, 2026

  • Assessment freeze for seniors and people with disabilities

    This program keeps your home's value from rising for tax purposes: if the value goes up, you pay tax on the former (lower) value. It is for owners 65 or older, or disabled as defined by the Social Security Act, who have owned an owner-occupied home and lived in South Dakota for five years (unless they received the freeze the previous year) and lived in the house at least 200 days of the previous year. The Department's brochure (December 2025) sets these limits: income under $56,595 for a one-person household or under $66,885 for a larger household, and a home with a market value under $514,500 (unless you already had the freeze). These limits change each year. You apply every year with the county treasurer by April 1.

    South Dakota Department of Revenue (Freeze on Assessments brochure, December 2025) · Verified October 24, 2026

When the sale is recorded

  • State real estate transfer fee

    When title to real property in South Dakota is transferred, a fee of 50 cents for each $500 of value, or fraction, is due. The law says the grantor pays it, that is, the person transferring the property; in a sale, the seller.

    SDCL §43-4-21 · South Dakota Legislature (South Dakota Codified Laws) · Verified October 24, 2026

Your next steps

Where to go next in South Dakota

What you can do today, free and without giving personal information. Go in order: your numbers first, then the help.

  1. Run the numbers with your figures

    The South Dakota calculator already has the typical value, the average rate and the state’s property tax.

  2. Check whether you qualify for help

    Each program says what it gives, who qualifies and when we checked it.

  3. Talk to a counselor for free

    13 HUD-approved agencies help you prepare to buy; 8 say they serve in Spanish.

  4. Follow the steps to buy a home

    From the budget to the keys, in order.

Frequently asked questions

How much down payment do I need for a typical home in South Dakota?

For a $257,400 home (typical value, Average 2020–2024), the FHA minimum (3.5%) is $9,009 and the conventional minimum (3%) is $7,722. VA and USDA ask no down payment if you qualify. State programs can cover part of it.

Are there high-cost counties in South Dakota?

Yes. In 2026 data, 1 of the 66 counties in South Dakota have an FHA limit above the national floor ($541,287); the highest is Lawrence County ($541,650).

What is the conforming loan limit in South Dakota?

In 2026 data, the conforming limit for one unit is $832,750 in every county in South Dakota: the most Fannie Mae and Freddie Mac will buy. Above it, the loan is a “jumbo” and each lender sets its own terms.

What would the monthly payment be on a typical home in South Dakota?

With $257,400, the FHA minimum down payment ($9,009) and the 7.18% average rate (November 5, 2026), principal and interest over 30 years comes to about $1,683 a month. Tax, insurance and mortgage insurance are missing: the calculator adds them.

What down payment help is there in South Dakota?

We have verified 2 state programs in South Dakota that put money toward the down payment or closing costs, or give a tax credit. Each shows the source wording, who qualifies and the date we checked it.