How much down payment do I need to buy a house in South Dakota?

You can buy a home in South Dakota with as little as 0% down (VA/USDA), 3% down ($8,250 conventional), or 3.5% down ($9,625 FHA) on the median-priced home of $275,000.

What income do I need to buy a home in South Dakota?

To afford the median-priced home in South Dakota ($275,000) with a 30-year mortgage at 6.1%, you typically need a household income of approximately $67,459 per year (using the 28% rule). The median income in South Dakota is $61,836.

What is the FHA loan limit in South Dakota for 2026?

The FHA loan limit in South Dakota for 2026 is $472,030. This means first-time buyers using FHA loans can finance up to this amount with just 3.5% down payment.

First-Time Home Buyer South Dakota 2026

Q: What first-time home buyer programs are available in South Dakota?

South Dakota offers 2 major first-time buyer programs including SDHDA FirstHome, SDHDA DPA. These programs provide grants, forgivable loans, and below-market rates to help with down payment and closing costs.

Your complete guide to buying your first home in South Dakota. 2+ down payment assistance programs, FHA loans from 5.9%, and step-by-step guidance.

Median Price

$275,000

Min Down (FHA)

$9,625

DPA Programs

Best Rate

5.9%

Check My South Dakota Eligibility

What First-Time Buyer Programs Are Available in South Dakota?

South Dakota offers 2 major first-time home buyer assistance programs. These include SDHDA FirstHome, SDHDA DPA. Programs provide up to Rate reduction in down payment assistance through grants, forgivable loans, and below-market interest rates.

How Much Do I Need to Buy in South Dakota?

You can buy a home in South Dakota with as little as $0 down. VA and USDA loans require zero down payment. FHA loans need just 3.5% ($$9,625), and conventional loans start at 3% ($$8,250) on the median price of $275,000.

Loan Type	Down Payment	$ Amount	Monthly P&I	Min Credit
VA Loan	0%	$0	$1,622	620
USDA Loan	0%	$0	$1,666	640
Conventional 3%	3%	$8,250	$1,616	620
FHA Loan	3.5%	$9,625	$1,574	580
Conventional 20%	20%	$55,000	$1,333	620

South Dakota Down Payment Assistance Programs

SDHDA FirstHome

Below-market rate for first-time buyers

Up to Rate reductionlow interest

SDHDA DPA

Down payment and closing cost assistance

Up to 5% of loandeferred

5 Steps to Buy Your First Home in South Dakota

To buy your first home in South Dakota, start by checking your credit score, getting pre-approved, and researching DPA programs. The entire process typically takes 30-60 days from pre-approval to closing. Here's your step-by-step roadmap.

Check Your Credit & Finances

Review your credit score (aim for 620+), calculate your debt-to-income ratio, and save for closing costs. In South Dakota, you may need as little as $9,625 for an FHA down payment.

Get Pre-Approved

Compare rates from at least 3 lenders. Current South Dakota rates: 6.1% (30-year), 5.9% (FHA). Pre-approval shows sellers you're serious and locks your rate.

Apply for South Dakota DPA Programs

South Dakota has 2+ DPA programs. The SDHDA FirstHome offers up to Rate reduction. Apply early—funding can be limited.

House Hunt & Make an Offer

Popular cities in South Dakota: Sioux Falls, Rapid City, Aberdeen, Brookings, Watertown. Median price is $275,000 (+5.0% YoY). Work with a local real estate agent who knows the market.

Close on Your New Home

Closing costs in South Dakota typically run 2-5% of the purchase price ($8,250-$13,750). Some DPA programs also cover closing costs.

Start Your South Dakota Home Buying Journey

Get pre-approved in minutes and see what you qualify for.

Get Pre-Approved Now

South Dakota First-Time Buyer FAQ

What first-time home buyer programs are available in South Dakota?

South Dakota offers 2 major programs: SDHDA FirstHome, SDHDA DPA. These provide grants, forgivable loans, and below-market rates for down payment and closing cost assistance.