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2025 FHA Loan Limits in South Dakota

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FHA loans can make home ownership more accessible for South Dakota homebuyers with low credit scores or limited down payment savings. Backed by the Federal Housing Administration (FHA), these mortgages help borrowers struggling to qualify for conventional home loans finance a home purchase. But there’s a limit to the amount you can borrow depending on where you live.

In all but one South Dakota county, residents buying a single-family home can borrow $524,225 at most with an FHA loan. But those in Lawrence County can borrow up to $541,650.

South Dakota FHA loan limits by county

South Dakota single-family FHA loan limits

County name	One unit	Two units	Three units	Four units	Median sales price
AURORA	$524,225	$671,200	$811,275	$1,008,300	$172,000
BEADLE	$524,225	$671,200	$811,275	$1,008,300	$124,000
BENNETT	$524,225	$671,200	$811,275	$1,008,300	$162,000
BON HOMME	$524,225	$671,200	$811,275	$1,008,300	$160,000
BROOKINGS	$524,225	$671,200	$811,275	$1,008,300	$324,000
BROWN	$524,225	$671,200	$811,275	$1,008,300	$285,000
BRULE	$524,225	$671,200	$811,275	$1,008,300	$267,000
BUFFALO	$524,225	$671,200	$811,275	$1,008,300	$132,000
BUTTE	$524,225	$671,200	$811,275	$1,008,300	$250,000
CAMPBELL	$524,225	$671,200	$811,275	$1,008,300	$183,000
CHARLES MIX	$524,225	$671,200	$811,275	$1,008,300	$232,000
CLARK	$524,225	$671,200	$811,275	$1,008,300	$193,000
CLAY	$524,225	$671,200	$811,275	$1,008,300	$204,000
CODINGTON	$524,225	$671,200	$811,275	$1,008,300	$258,000
CORSON	$524,225	$671,200	$811,275	$1,008,300	$108,000
CUSTER	$524,225	$671,200	$811,275	$1,008,300	$338,000
DAVISON	$524,225	$671,200	$811,275	$1,008,300	$243,000
DAY	$524,225	$671,200	$811,275	$1,008,300	$192,000
DEUEL	$524,225	$671,200	$811,275	$1,008,300	$157,000
DEWEY	$524,225	$671,200	$811,275	$1,008,300	$95,000
DOUGLAS	$524,225	$671,200	$811,275	$1,008,300	$172,000
EDMUNDS	$524,225	$671,200	$811,275	$1,008,300	$285,000
FALL RIVER	$524,225	$671,200	$811,275	$1,008,300	$225,000
FAULK	$524,225	$671,200	$811,275	$1,008,300	$164,000
GRANT	$524,225	$671,200	$811,275	$1,008,300	$239,000
GREGORY	$524,225	$671,200	$811,275	$1,008,300	$155,000
HAAKON	$524,225	$671,200	$811,275	$1,008,300	$176,000
HAMLIN	$524,225	$671,200	$811,275	$1,008,300	$258,000
HAND	$524,225	$671,200	$811,275	$1,008,300	$190,000
HANSON	$524,225	$671,200	$811,275	$1,008,300	$243,000
HARDING	$524,225	$671,200	$811,275	$1,008,300	$163,000
HUGHES	$524,225	$671,200	$811,275	$1,008,300	$242,000
HUTCHINSON	$524,225	$671,200	$811,275	$1,008,300	$204,000
HYDE	$524,225	$671,200	$811,275	$1,008,300	$123,000
JACKSON	$524,225	$671,200	$811,275	$1,008,300	$138,000
JERAULD	$524,225	$671,200	$811,275	$1,008,300	$124,000
JONES	$524,225	$671,200	$811,275	$1,008,300	$126,000
KINGSBURY	$524,225	$671,200	$811,275	$1,008,300	$212,000
LAKE	$524,225	$671,200	$811,275	$1,008,300	$280,000
LAWRENCE	$541,650	$693,400	$838,150	$1,041,650	$380,000
LINCOLN	$524,225	$671,200	$811,275	$1,008,300	$381,000
LYMAN	$524,225	$671,200	$811,275	$1,008,300	$230,000
MARSHALL	$524,225	$671,200	$811,275	$1,008,300	$179,000
MCCOOK	$524,225	$671,200	$811,275	$1,008,300	$381,000
MCPHERSON	$524,225	$671,200	$811,275	$1,008,300	$111,000
MEADE	$524,225	$671,200	$811,275	$1,008,300	$360,000
MELLETTE	$524,225	$671,200	$811,275	$1,008,300	$77,000
MINER	$524,225	$671,200	$811,275	$1,008,300	$119,000
MINNEHAHA	$524,225	$671,200	$811,275	$1,008,300	$381,000
MOODY	$524,225	$671,200	$811,275	$1,008,300	$276,000
OGLALA LAKOTA	$524,225	$671,200	$811,275	$1,008,300	$60,000
PENNINGTON	$524,225	$671,200	$811,275	$1,008,300	$360,000
PERKINS	$524,225	$671,200	$811,275	$1,008,300	$155,000
POTTER	$524,225	$671,200	$811,275	$1,008,300	$185,000
ROBERTS	$524,225	$671,200	$811,275	$1,008,300	$182,000
SANBORN	$524,225	$671,200	$811,275	$1,008,300	$183,000
SPINK	$524,225	$671,200	$811,275	$1,008,300	$154,000
STANLEY	$524,225	$671,200	$811,275	$1,008,300	$242,000
SULLY	$524,225	$671,200	$811,275	$1,008,300	$271,000
TODD	$524,225	$671,200	$811,275	$1,008,300	$52,000
TRIPP	$524,225	$671,200	$811,275	$1,008,300	$182,000
TURNER	$524,225	$671,200	$811,275	$1,008,300	$381,000
UNION	$524,225	$671,200	$811,275	$1,008,300	$262,000
WALWORTH	$524,225	$671,200	$811,275	$1,008,300	$165,000
YANKTON	$524,225	$671,200	$811,275	$1,008,300	$245,000
ZIEBACH	$524,225	$671,200	$811,275	$1,008,300	$132,000

How are FHA loan limits determined?

Each year, the FHA revises borrowing limits for the mortgages it backs to ensure they accurately reflect changing home prices across the country. It relies on a formula outlined in the National Housing Act, which states the maximum amount you can borrow with an FHA loan will always be a percentage of the national conforming loan limit. The Federal Housing Finance Agency (FHFA) sets this national limit for conventional loans that Freddie Mac and Fannie Mae own or guarantee.

In 2025, the largest FHA loan available in most counties across the country, or the loan limit floor, is $524,225, which is 65% of the national conforming loan limit of $806,500. Those living in major cities or other expensive areas can borrow more to help them afford property, potentially up to the loan ceiling amount of $1,209,750, or 150% of that same national conforming loan limit.

The largest FHA loan available in South Dakota is $541,650, for those buying in Lawrence County. Homes bought in the state’s 65 other counties can receive FHA financing up to the loan limit floor of $524,225.

How to qualify for an FHA loan in South Dakota

The qualification requirements for an FHA loan differ from those for a conventional loan. Since FHA loans are government backed, it’s generally easier for homebuyers with low credit scores or small down payments to get approved. But you will still need to meet the following criteria to apply for one:

→ Minimum credit score: Those with scores between 500 and 580 must make a down payment of 10% or more, while those with higher scores can pay the minimum 3.5% required. If your score dropped because of a previous bankruptcy or foreclosure, you can also get an FHA loan quicker than the typical four- to seven-year waiting period required for a conventional loan.
→ Down payment: Those with credit scores of 580 or higher can finance all but 3.5% of their home purchase through an FHA loan. Borrowers with lower scores will need to put down 10% or more to secure an FHA loan.
→ Debt-to-income ratio (DTI): Lenders will divide your total debt by your pretax income to find your DTI, which helps them ensure you can afford your mortgage payment. The FHA prefers applicants with a DTI ratio of 43% or less. A higher DTI indicates you may be a riskier borrower. You may still be approved with a DTI above 43%, but you’ll need a strong credit score and a certain amount of cash savings.
→ Mortgage insurance: FHA loans require two kinds of additional mortgage insurance. The upfront mortgage insurance premium equals 1.75% of the total loan amount and is usually added to your mortgage balance. The annual mortgage insurance premium costs between 0.15% and 0.75% of the total loan balance and is typically added to your monthly payment.
→ Live in the purchased home: The home you buy with an FHA loan must be your primary residence for at least one full year. You cannot use this financing for vacation homes or rental properties.
→ Appraisal: Homes purchased with an FHA loan must undergo an FHA appraisal verifying the value, condition and safety of the home.
→ Stable work history: There are no income limits or requirements you must meet to get an FHA loan, but lenders will still want to see pay stubs, W2s, 1099s or other documents that prove at least two years’ worth of steady employment. And expect to be asked about any large gaps on your resume.

Buying a multifamily property with an FHA loan

You can also use an FHA loan to purchase a multifamily property with up to four separate housing units. This means your FHA loan can help you generate rental income. You’ll still only need to make a down payment of 3.5% or 10%, depending on your credit score, but higher financing limits apply than with a single-family home purchase. That means you may be able to borrow up to $2,326,875 to secure your new property.

To qualify for a multifamily FHA loan, you must meet the following requirements:

→ Credit score: You can qualify for an FHA loan with a minimum credit score of 500.
→ Down payment: With a credit score between 500 and 579, you’ll need to make a 10% down payment to get an FHA loan. If your credit score is 580 or higher, you can put down as little as 3.5%.
→ Debt-to-income ratio: Your total debt should equal 43% or less of your pretax income for the best chance of getting an FHA loan. You may still get approved with a higher DTI, but you’ll need a stronger credit score or large cash reserves.
→ Live in one of the units: You must reside in one of the units within the multiunit property for at least a year. The remaining units can be rented out.
→ Mortgage insurance: You’ll pay additional insurance expenses with an FHA loan. These include an upfront mortgage insurance premium equal to 1.75% of the total loan and an annual mortgage insurance premium costing between 0.15% and 0.75% of the loan amount.
→ Appraisal: For an FHA loan to be approved, the property must undergo and pass an FHA appraisal first.
→ Stable work history: Lenders will want to see proof of at least two years’ worth of stable income and employment. You can factor potential rental earnings from the property into your application.