Sioux Falls FHA Loan Rates, Closing Costs & Stats

SIOUX FALLS, SD

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    • FHA loans are mortgages created in the 1930's to help insulate lenders from credit risks and help promote home ownership. The Federal Housing Administration (hence, FHA) allows for lower downpayments and credit scores-- making these loans much more accessible than traditional mortgages.

    FHA loans typically need just a 3.5% downpayment with credit scores of 580 or better. For credit scores between 500-579, the downpayment needs to be at least 10%.

    While FHA loans make home ownership much more accessible to first-time homebuyers, they do require PMI (purchase money insurance)-- an additional insurance premium that is paid to the FHA to help cover defaults.

    For additional requirements as defined by the FHA, click here.

    Sioux Falls's 56 lenders originated 914 FHA loans during 2024. The total origination value was $252,410,000, with an average FHA loan value of $276,160.

    Sioux Falls FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Sioux Falls averaged 0.01% for the week of 2025-07-04, compared to the national average (all FHA variants) of 0% for the same period.

    Sioux Falls's average FHA mortgage closing costs are $7,331.

    The average rate for the prior week (2025-06-27) was 6.2% and one month ago for the week of 2025-05-30, the average rate was 6.37%.

    The average rate one year ago was 6.5%.

    For refis of the same type during the week of 2025-07-04, the average rate was -0.59%.

    Click on whitespace and scroll within the chart to zoom in/out. Larger bubbles equate with more originations.

    Sioux Falls FHA Loan Lenders by Rates & Fees

    The below table looks at the average fees/closing costs and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Sioux Falls level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    Plains Commerce Bank 269 6.13% $8,871
    First PREMIER Bank 89 6.09% $8,354
    First Bank & Trust 68 6.00% $8,945
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 51 6.16% $7,885
    CROSSCOUNTRY MORTGAGE, LLC 47 6.45% $9,807
    QUICKEN LOANS, LLC 28 6.31% $12,242
    UNITED WHOLESALE MORTGAGE, LLC 25 5.98% $12,066
    SIOUX FALLS 24 5.77% $8,050
    First National Bank of Omaha 20 6.13% $7,771
    Reliabank Dakota 15 6.27% $9,020
    First Dakota National Bank 15 5.96% $7,200
    CU MORTGAGE DIRECT, LLC 13 6.32% $7,549
    American Bank & Trust 12 5.94% $7,552
    GUARANTEED RATE, INC. 11 6.26% $11,868
    LOANDEPOT.COM, LLC 10 6.08% $11,494
    First International Bank & Trust 9 6.13% $9,336
    CORTRUST MORTGAGE, INC. 7 6.21% $8,283
    BLACK HILLS FEDERAL CREDIT UNION 7 5.66% $7,257
    FREEDOM MORTGAGE CORPORATION 6 6.67% $14,452
    PENNYMAC LOAN SERVICES, LLC 6 6.23% $16,833
    Flagstar Bank, FSB 6 5.72% $10,274
    NEWREZ LLC 5 6.70% $10,756
    U.S. Bank 5 5.90% $6,019
    MUTUAL OF OMAHA MORTGAGE, INC. 4 6.44% $21,561
    LAKEVIEW LOAN SERVICING, LLC 4 6.72% $10,410
    CARDINAL FINANCIAL 3 6.54% $14,459
    AMERISAVE MORTGAGE CORPORATION 3 6.08% $13,763
    AmeriHome Mortgage Company, LLC 3 6.58% $8,125
    VILLAGE CAPITAL MORTGAGE 3 6.21% $9,386
    Equity Prime Mortgage LLC 3 6.33% $12,226
    MID AMERICA MORTGAGE, INC. 2 6.25% $3,932
    Central Bank 2 5.94% $12,047
    CHURCHILL MORTGAGE CORPORATION 2 6.75% $9,442
    Prosperity Home Mortgage, LLC 2 5.88% $15,120
    Dacotah Bank 2 6.18% $6,336
    PRIMARY RESIDENTIAL MORTGAGE, INC. 2 6.38% $14,465
    AMERICAN FINANCING CORPORATION 1 5.99% $10,112
    AMERICAN FINANCIAL NETWORK, INC. 1 7.63% $14,793
    ZILLOW HOME LOANS, LLC 1 6.13% $8,675
    Century Mortgage Company DBA Century Lending Company 1 6.75% $4,796
    Carrington Mortgage Services, LLC 1 6.63% $17,329
    Flanagan State Bank 1 6.25% $11,767
    BROKER SOLUTIONS, INC. 1 7.25% $9,137
    GUILD MORTGAGE COMPANY 1 3.50% $2,413
    Jonah Bank of Wyoming 1 6.25% $5,491
    Lakeview Community Capital, LLC 1 6.75% $12,613
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 6.63% $13,657
    Magnolia Bank 1 6.75% $13,121
    Mortgage Research Center, LLC 1 4.88% $17,677
    MORTGAGE SOLUTIONS OF COLORADO, LLC 1 6.75% $19,153
    Mr. Cooper ( Nationstar Mortgage ) 1 6.25% $8,359
    NBKC BANK 1 7.13% $7,699
    PLANET HOME LENDING, LLC 1 6.38% $4,108
    PLAZA HOME MORTGAGE, INC. 1 5.99% $6,625
    American Mortgage & Equity Consultants, Inc. 1 7.25% $12,184
    RESIDENTIAL BANCORP 1 6.13% $13,060

    The top Sioux Falls FHA lender as defined by loan originations is Plains Commerce Bank, with 269 FHA loans originated. Their average total fees are $8,871, which is $517 higher than the next largest lender, First PREMIER Bank.

    The lowest fee Sioux Falls FHA lenders (with over 10 loans originated) are First Dakota National Bank ($7,200), CU MORTGAGE DIRECT, LLC ($7,549), American Bank & Trust ($7,552), First National Bank of Omaha ($7,771) and FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($7,885).

    The lowest rate Sioux Falls FHA lenders (with over 10 loans originated) are SIOUX FALLS (5.77%), American Bank & Trust (5.94%), First Dakota National Bank (5.96%), UNITED WHOLESALE MORTGAGE, LLC (5.98%) and First Bank & Trust (6.00%).

    Sioux Falls FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    SIOUX FALLS, SD LINCOLN 2022 $420,680 $538,650 $651,050 $809,150
    SIOUX FALLS, SD MCCOOK 2022 $420,680 $538,650 $651,050 $809,150
    SIOUX FALLS, SD MINNEHAHA 2022 $420,680 $538,650 $651,050 $809,150
    SIOUX FALLS, SD TURNER 2022 $420,680 $538,650 $651,050 $809,150
    SIOUX FALLS, SD LINCOLN 2023 $472,030 $604,400 $730,525 $907,900
    SIOUX FALLS, SD MCCOOK 2023 $472,030 $604,400 $730,525 $907,900
    SIOUX FALLS, SD MINNEHAHA 2023 $472,030 $604,400 $730,525 $907,900
    SIOUX FALLS, SD TURNER 2023 $472,030 $604,400 $730,525 $907,900

    FHA Loan Requirements

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money may be gifted by a family member. (Traditional mortgages do not permit gifted down payments)
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers’ debt to income ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent.
  • Bborrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit.
  • The purchased property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).