South Dakota DSCR Loans: No Tax Returns, 1.2 DSCR Min, Rates from 6.25%
Rental property financing for South Dakota investors qualified on property cash flow — not personal income, W-2s, or tax returns. Serving Sioux Falls, Rapid City and the rest of South Dakota. If the property cash-flows at 1.2× the mortgage, you may qualify.
- 1.2 DSCR minimum
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- 680+ FICO
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- Refi from 6.25%
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- 21–30 day close
Can I get a DSCR rental loan in South Dakota?
Yes. DSCR loans in South Dakota qualify investors based on property cash flow with a 1.2 DSCR minimum, 680+ FICO, and 20–25% down. No tax returns, W-2s, or DTI calculation required. 1–4 unit residential and 5+ unit multifamily eligible. Refi rates start at 6.25%.
Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated May 2026.
South Dakota Rental Market Snapshot
State-level data DSCR underwriters use to size South Dakota rental deals.
South Dakota is a small but stable DSCR market. Sioux Falls anchors the deeper financial-services LTR base; Rapid City serves Black Hills tourism and Ellsworth AFB military demand. No state income tax draws investors from neighboring NE/IA/MN.
Major South Dakota Markets We Fund
Active DSCR deal flow across South Dakota's core rental markets. Same requirements — 1.2 DSCR, 680+ FICO, 20–25% down — apply statewide.
| Metro | Median Price | Gross Yield | DSCR Investor Notes |
|---|---|---|---|
| Sioux Falls | $325K | 6.0–7.5% | Largest SD market — financial-services employment, growing in-migration |
| Rapid City | $295K | 6.5–8.0% | Black Hills tourism + Ellsworth AFB military, seasonal STR opportunity |
South Dakota Eviction Timeline & Landlord Posture
How South Dakota courts handle non-payment evictions — material to DSCR loss-severity assumptions.
South Dakota requires a 3-day notice for non-payment. Magistrate court forcible-entry actions typically resolve within 14 days of filing — among the fastest in the country.
South Dakota Rate Adjustment vs National Baseline
Sub-jumbo loan sizes and rapid eviction process keep loss severity below national average.
Final pricing depends on FICO, LTV, DSCR, property type, and program. Baseline national DSCR refi rates start at 6.25% as of May 2026.
DSCR Lenders Active in South Dakota
The non-bank DSCR programs we see most frequently funding South Dakota rental deals. PeerSense matches your scenario across this lender set rather than locking you into one.
- Kiavi
- Visio Lending
- Lima One
- RCN Capital
PeerSense is independent — not a lender. Lenders listed are programs we have funded South Dakota deals through; specific terms vary by file.
South Dakota DSCR Loan Requirements
| Requirement | Minimum | Notes |
|---|---|---|
| DSCR | 1.20 | 1.00+ allowed with 740 FICO or 30% down |
| Credit Score | 680 FICO | 640–679 by exception, lower LTV |
| Down Payment | 20–25% | 25% if <1.2 DSCR or <700 FICO |
| Property Type | 1–4 units or multifamily | Condos, townhomes, STRs OK where legal |
| Income Docs | None | No tax returns, W-2s, DTI check |
| Reserves | 6 months PITIA | Checking, savings, stocks qualify |
| Close Time | 21–30 days | Cash-out refi: 14–21 days |
Not a commitment to lend. Rates and terms subject to underwriting. See our full DSCR loan guide for the complete program.
Get South Dakota DSCR Loan Terms
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Related DSCR Resources
- DSCR Loans Hub — Programs & Rates
- DSCR Rental Loans — Full Program Guide
- DSCR for Airbnb / Short-Term Rentals
- DSCR Cash-Out Refinance
- DSCR Jumbo Loans ($1M+)
- DSCR for LLCs / Entity Title
- Best DSCR Lenders 2026
- DSCR Loans — Complete Guide
- DSCR Calculator — Test Your Property
- Fix & Flip Loans — Bridge to DSCR Exit
- Bridge Loans — Short-Term Rental Acquisition
- DSCR vs Conventional Mortgage