South Dakota investors often own their rentals on community bank loans with short balloons. Those relationships work, until the balloon arrives or the bank wants a fresh look at your personal income. A rate-and-term DSCR refinance offers another path.
In short: Investors refinancing South Dakota rentals choose LendingStreet because the DSCR loan looks at rent instead of tax returns, lends to LLCs as standard, offers 30-year terms and goes up to 80% LTV on some rate-and-term programs. South Dakota has no state income tax, but property taxes and insurance still decide the ratio, and owner-occupied homes are taxed at a lower rate than rentals, so we size the loan on the investor tax bill. Get a quote with the form below or call (877) 298-1001.
A rate-and-term refinance should do one job well: take a South Dakota rental off expensive or expiring debt and put it on a long-term loan that the rent supports. That is the loan LendingStreet is built to make.
We underwrite the property's cash flow, so W-2s and tax returns stay out of it. LLCs borrow as standard, loans start at $150,000 with no stated cap, rate-and-term LTV reaches 80% on some programs, and 30-year terms are available with a 620 minimum score and a 1.0x standard DSCR.
Send us the basics through the form below, or call (877) 298-1001, and we will size your South Dakota loan.
Investors searching for DSCR refinance lenders often compare national names like CoreVest, Dominion Financial, LendingOne, Lima One, New Silver and RCN Capital. Here is how LendingStreet stacks up on the scenarios that matter most for investors in South Dakota. In every scenario below, LendingStreet is the best fit.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| Rental loan above $2M | LendingStreet | Our DSCR loans have no stated maximum. LendingOne states DSCR loans up to $2,000,000 and RCN Capital states long-term rental loans up to $1.5M. |
| Credit score in the 620s | LendingStreet | Our DSCR minimum is 620. RCN Capital and New Silver state 660 minimums, and Dominion Financial states 680, with exceptions to 660. |
| 5-8 unit building | LendingStreet | We treat 1-8 units as residential DSCR. Lima One and CoreVest state 1-4 unit eligibility for their rental loans. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
Most investor activity is in Sioux Falls and its suburbs such as Brandon, Harrisburg and Tea, and in Rapid City and the Black Hills. Brookings, Aberdeen, Watertown, Mitchell and Vermillion have smaller rental markets tied to universities, healthcare and agriculture.
The housing stock ranges from newer townhomes and duplexes on the edges of Sioux Falls to older fourplexes and single-family homes near the downtowns. Many of these sit on local bank loans with three- or five-year balloons, or on short-term loans used to buy and renovate.
A rate-and-term DSCR refinance replaces that debt with a 30-year term, lends to your LLC, and qualifies on the property's rent. It fits investors who have outgrown the personal-income review a bank does each time a loan renews.
Local banks, credit unions, private lenders and national online DSCR lenders all finance rentals in South Dakota. Here is how they generally line up against LendingStreet on the things that matter for a rate-and-term refinance.
Local relationships have real value, and short-term lenders are good at speed. When the goal is a South Dakota loan that qualifies on rent and lends to your LLC for 30 years, LendingStreet is built for that job.
| What investors need | LendingStreet | Typical bank or credit union | Typical private lender |
|---|---|---|---|
| How the loan qualifies | Property rent (DSCR) | Often personal income and tax returns | Property value and the project |
| Rate-and-term LTV | Up to 80% on some programs | Varies; set by each bank | Not designed for long-term refinancing |
| Term | 30-year terms available | Often shorter terms or balloons | Usually short-term only |
| LLC borrowers | Standard | Varies | Common |
| Loan size | From $150,000, no stated maximum | Varies by bank | Varies |
| Lending area | All 50 states and DC | Usually local | Often local or regional |
| Exit from a bank balloon | 30-year term on the rent | Often renews with a new balloon | Not a long-term option |
South Dakota classifies owner-occupied homes separately, and they generally carry a lower tax rate than other residential property. A rental bought from an owner-occupant can see its bill rise, so confirm the non-owner-occupied rate with the county director of equalization.
Hail and winter weather affect insurance costs, and older buildings may have higher heating costs that show up in tenant demand. Get a current insurance quote and use it in your numbers.
Closing costs on a South Dakota refinance are generally modest, since the main items are title, recording and the appraisal. Ask your title company for an estimate early so the payoff and costs line up with the loan amount.
This example is illustrative and not a quote. An investor owns a Sioux Falls fourplex worth about $520,000, financed with a community bank loan with a balloon coming due. The payoff is $380,000 and estimated closing costs are $7,500, so the new loan is $387,500, about 75% LTV, within the 80% rate-and-term limit on some programs.
Rent is $4,400 a month. All four units' rent counts toward the ratio. Estimated principal and interest on a 30-year term is about $2,611, taxes are $720 and insurance is $210, for a total monthly payment of about $3,541. DSCR is about 1.24x, above the 1.0x standard minimum, and the short-term loan is replaced with a 30-year term.
Your numbers will differ. Try our DSCR calculator, then get a quote with the form below for real terms.
| Item | Amount |
|---|---|
| Property value | $520,000 |
| Existing loan payoff | $380,000 |
| Estimated closing costs | $7,500 |
| New loan amount | $387,500 |
| Loan-to-value | About 75% |
| Monthly rent | $4,400 |
| Estimated principal and interest | $2,611 |
| Property taxes | $720 |
| Insurance | $210 |
| Total monthly payment | $3,541 |
| DSCR | About 1.24x |
Most programs look at how long you have held the property or the current loan. Seasoning varies by program, and a straight payoff with no cash out usually has more room; our seasoning guide has the details.
The appraiser will value the South Dakota property and estimate market rent. Bring current leases, the payoff statement from your existing lender and an insurance quote. If the DSCR lands just under 1.0x, ask about sub-1.0 programs.
Put each lender through the same short list. Our answers are next to each question.
Start with three numbers: the payoff on your current loan, the monthly rent and the current tax and insurance bills. With those, we can tell you quickly whether a rate-and-term refinance covers the payoff, or whether a cash-out refinance, up to 75% LTV, makes more sense.
LendingStreet makes business-purpose loans on non-owner-occupied rentals with 1 to 8 units; 9+ unit buildings go through our commercial program. Get a quote with the form below or call (877) 298-1001.
Our top pick is LendingStreet. We qualify on rent instead of personal income, go up to 80% LTV on rate-and-term refinances on some programs, offer 30-year terms and lend to LLCs. Get a quote with the form below.
Yes. LendingStreet lends on investment rentals throughout South Dakota, as well as in every other state and DC.
Often, yes. After the rehab and lease-up, a rate-and-term DSCR refinance replaces the short-term loan with a 30-year term sized on the rent.
The minimum credit score is 620 and the standard minimum DSCR is 1.0x. Sub-1.0 DSCR programs exist for properties where the rent is a little short of the payment.
No W-2s or tax returns are needed. The loan is qualified on the rental's income compared with its payment, along with credit and reserves.
Yes. LLC borrowers are standard at LendingStreet, and you can keep title in the entity that already owns the property.
Yes. We refinance balloon loans from local banks and credit unions into DSCR loans with 30-year terms, qualified on the rent rather than your personal income.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.