2025 · South Dakota

How investors finance real estate in South Dakota

In 2025, 1,060 investment-property loans worth $253M were originated on single-family 1-4 unit homes in South Dakota. Here's how those terms compared to the rest of the country.

Investor rate premium

88 bps

U.S. median: 76 bps

Denial rate

6.6%

U.S. median: 17.5%

DSCR / business-purpose

65%

U.S. median: 72%

Median LTV

75%

U.S. median: 74%

Since 2024 in South Dakota

Rate premium

125 bps → 88 bps

-37 bps

Investor loans

919 → 1,060

+15.3%

Denial rate

8.6% → 6.6%

-1.9 pts

DSCR / business-purpose

65% → 65%

-0.2 pts

What the numbers say

Investors in South Dakota borrowed at a median rate of 7.25%, versus 6.375% for owner-occupants — a 88 bps premium that ranks 18th of 51 states.

Their applications were denied 6.6% of the time. The leading reasons for denial were debt-to-income ratio, collateral, credit history.

65% of investor loans were business- or commercial-purpose — the category that includes DSCR and LLC-held loans — and 8% were cash-out refinances. The typical loan-to-value was 75%, implying about 25% down.

Frequently asked questions

How much more do investors pay for a mortgage in South Dakota?

In 2025, the median investment-property loan in South Dakota carried a rate of 7.25% versus 6.375% for an owner-occupant — a premium of 88 bps. That ranks 18th of 51 states (1 = highest premium).

What share of investor loan applications are denied in South Dakota?

6.6% of investment-property applications were denied in South Dakota in 2025, the 50th-highest denial rate among the 51 states. The most common denial reasons were debt-to-income ratio, collateral, credit history.

How common are DSCR and business-purpose investor loans in South Dakota?

65% of investor loans in South Dakota were flagged as primarily business or commercial purpose — the bucket that includes DSCR and LLC-held loans (39th of 51). The median loan-to-value was 75%.

Run the numbers for a deal here

DSCR Loan Qualifier Mortgage / DSCR Payment All 50 states ranked How we built this

Source: CFPB / FFIEC HMDA combined Modified LAR (loan-level public dataset, early release), 2025. Single-family 1-4 unit, site-built loans; financed purchases only.