Sioux Falls has posted positive home-price appreciation every single year since 1992—even during 2008 and the 2020 shutdown—because demand is anchored by two recession-proof industries: healthcare and finance. Sanford Health’s 28,000 employees and the credit-card servicing campuses for Wells Fargo, Citi, and MetaBank create a steady influx of relocating professionals who need housing within 60 days.

Key numbers:

• Median sale price: $300,000 (up 5.1 % year-over-year)
• Average days on market: 38 city-wide, 14 in the Roosevelt HS corridor
• New construction permits: 1,847 in 2023, the highest since 2005
• Share of list price received: 99.4 %—sellers rarely negotiate

Because inventory stays tight, buyers who arrive with an NMHL Priority Pre-Approval—our fully underwritten credit approval—are treated like cash. Listing agents remember which lenders actually closed on time last spring, and NMHL’s local processor picks up the phone when they call for an update.

Downtown (57103): Historic lofts and walk-up condos from $180 k to $450 k. Special assessment taxes can add $100/month—factor that into your debt-to-income ratio. Great for weekend renters on Airbnb when Sanford conferences fill up downtown hotels.

McKennan Park (57105): Tree-lined streets, 1920s Craftsman homes, and the city’s best holiday light displays. Expect $250–$300 per square foot. Properties rarely last a weekend, so have your NMHL pre-approval letter uploaded with the offer.

Prairie Green / Southern 57108: Newer builds, golf-course lots, and top-rated elementary schools. Prices run $350 k–$550 k, but HOA dues are modest at $150–$200/year. Builders here still contribute 2 % toward closing costs if you use their preferred lender—NMHL will match those credits and beat the rate by .125 %.

Brandon (57005): Technically separate, but only 7 minutes east on I-90. Larger lots, brand-new middle school, and you can still get a 2,000-sq-ft ranch for $340 k. Property tax rate is 1.18 %, slightly lower than Sioux Falls proper.

North End (57104): Value play for investors—1900s fixer-uppers under $200 k. NMHL’s FHA 203(k) renovation loan rolls purchase and rehab into one 30-year fixed at today’s low rate.

Moving from Minnesota or Iowa? You’ll immediately feel the difference: no state income tax means a $75 k earner keeps an extra $3,200–$4,100 a year—enough to cover half your mortgage payment. South Dakota funds services through sales tax (4.5 % state + 2 % city) and property tax. In Sioux Falls, the mill levy is 18.92 on schools plus 5.87 on city/county, totaling an effective rate of 1.22 % of assessed value.

Assessment is 85 % of market value, and annual increases are capped at 3 % or the rate of inflation, whichever is lower. Translation: even if your Prairie Green home jumps 8 % in resale comps, your taxable value only rises 3 %, keeping monthly escrow predictable—something lenders love when qualifying you.

Finally, South Dakota offers two relief programs: the Assessment Freeze for seniors over 70 (income under $31,900) and the Disabled Veterans Property Tax Exemption, which wipes out the first $150 k of value—worth about $150/month on a $300 k home. NMHL loan officers walk every veteran applicant through the exemption paperwork before closing so the payment shock disappears.

Coming up with a 20 % down payment on a $300 k Sioux Falls home means $60 k cash—rare for first-time or credit-rebuilding buyers. The good news: our region still has generous assistance programs:

• SDHDA First-Time Homebuyer Grant: 3 % of purchase price (up to $8,000) forgiven after five years. Combine with NMHL 3 % conventional for only $1,500 out-of-pocket on a $300 k home.
• SDHDA Fixed-Rate Plus: 0 % second mortgage for down payment; no monthly payment, entire balance forgiven in year ten.
• City of Sioux Falls Workforce Program: $5,000 for police, teachers, nurses, and firefighters. Must buy within city limits and stay five years.
• NMHL Bridge-Grant: We’ll front up to $7,500 of your 3.5 % FHA down payment in exchange for a slightly higher rate—perfect if you’re waiting for equity from a relocating home sale.

If your credit score is 550–619, we pivot to our NMHL Second-Chance Path: 10 % down, but we gift 3 % so you only bring 7 % to the table. Most borrowers refinance into a conventional loan after 18 months of on-time payments and drop the rate by 1–1.5 %.

Big banks treat South Dakota as fly-over country—approvals come from Minneapolis algorithms that don’t understand seasonal ag income or the $18/hour starting wage at Smithfield. NMHL’s Sioux Falls branch underwrites locally, so we can approve loans the national call centers decline.

Bad Credit / Recent Life Events: Our Fresh-Start FHA allows 580 with 3.5 % down and 550 with 10 % down. We accept one year of on-time rent history in place of traditional credit, huge for first-generation buyers. If a medical collection dropped your score, we use the middle of three FICO models and ignore balances under $500.

Self-Employed / Gig Workers: Bank-statement loans use 12 or 24 months of personal or business statements, no tax returns. Qualify at 80 % of gross deposits; we average the last two years and can remove any large, one-time, non-recurring refunds. Perfect for wedding photographers, truck owner-operators, and Etsy sellers who dominate the Sioux Falls farmer’s market.

Veterans & Active Duty: VA zero-down to $766,550 in Minnehaha County even if you’re at 100 % disability. We waive the 1 % VA funding fee for Purple Heart recipients and can close in 20 days so you beat cash investors on northeast starter homes.

First-Time Buyers with Student Loans: Fannie Mae HomeReady allows a debt-to-income ratio of 50 % and uses IBR payments instead of 1 % of balance. Combine with SDHDA $8 k grant and you can carry $60 k in student debt and still qualify for a $300 k home.

Sioux Falls is forecast to add another 25,000 residents by 2030, but the city only issues about 2,000 single-family permits a year. Simple math says prices and rents will keep climbing. Locking a rate now with an NMHL 90-day Rate-Shield means you can shop confidently while other buyers scramble.

1. Complete the 10-minute online pre-approval—our system pulls soft credit, so your score won’t drop.
2. Upload income docs to our Sioux Falls portal; most borrowers receive an underwritten approval within 24 hours.
<3>Schedule a 15-minute call with our local loan officer to match you with SDHDA grants, employer relocation dollars, or VA exemptions.
3. House-hunt with a realtor who knows which neighborhoods still allow 3 % down offers to compete—our partner list includes agents who sold 1,200 homes here last year.
4. Close in as little as 21 days and get the keys, often with less than $5,000 total cash thanks to South Dakota’s stacked assistance programs.

Whether you’re recovering from a foreclosure, relocating from California, or finally ready to leave the rental loop on the east side, NMHL has the local expertise and flexible programs to make Sioux Falls homeownership happen this year.