Inside Rapid City, few rentals justify a loan over $1.5 million. In the hills around it, the picture changes: large lodge-style homes that sleep big groups near Mount Rushmore, Sheridan Lake and Hill City can carry jumbo balances if the bookings are real and the use is allowed.
In short: LendingStreet offers jumbo DSCR loans of about $1.5M to $5M+ on high-value 1-8 unit rentals, including large Black Hills vacation homes and Rapid City portfolios. Loans qualify on rent or, on some programs, short-term rental income, with no W-2s or tax returns. Larger balances get more review and max LTV can be lower; it varies by program.
Be realistic about the Rapid City market. Most in-town rentals sell well below jumbo size. Jumbo loans in this area usually come from one of these sources.
None of these paths is unusual for experienced investors in the area. Owners who have collected several in-town rentals or built up a vacation rental business often reach jumbo scale across their holdings even if no single property is that large.
| Source | Typical property | Income used |
|---|---|---|
| Large vacation home | Lodge-style home in the hills sleeping large groups | Short-term rental income on some programs |
| Portfolio of rentals | Several Rapid City houses and small buildings | Combined long-term rent |
| High-end in-town home | Newer luxury home on the west side | Long-term lease, limited comparables |
Big homes near Mount Rushmore, Keystone, Hill City and Sheridan Lake attract family reunions, hunting groups and rally visitors. They can earn strong summer income, but the season is short, and winter bookings drop. Programs that use short-term rental income look at annual figures or a projection, so the loan is sized on the full year, not peak weeks.
These homes also need to be legally operating: a South Dakota lodging license, sales and tourism tax filings, and local zoning approval. Some areas and associations do not allow nightly rentals at all.
Large homes also cost more to run: cleaning crews for big turnovers, hot tub and grounds maintenance, snow removal on long driveways and higher utility bills. The DSCR uses the housing payment, but these costs decide whether the property actually makes money, so build a full operating budget.
This example is illustrative and not a quote. An investor buys a large lodge-style home in the Black Hills for $2,400,000. The program uses qualifying short-term rental income of $16,500 a month based on a revenue projection. Taxes are $2,600 a month and insurance, including wildfire coverage, is $950.
At 65% LTV the loan is $1,560,000, estimated principal and interest is about $10,642, the payment is about $14,192 and the DSCR is about 1.16x. At 62% LTV the loan is $1,488,000, the payment is about $13,701 and the ratio improves to about 1.20x. On a balance this size, lower leverage is common.
Your numbers will depend on the real revenue projection, the tax bill on that parcel and the insurance quote. If the projection looks high compared with similar licensed homes nearby, expect the program to size the loan conservatively.
| Item | 65% LTV | 62% LTV |
|---|---|---|
| Loan amount | $1,560,000 | $1,488,000 |
| Estimated principal and interest | $10,642 | $10,151 |
| Taxes and insurance | $3,550 | $3,550 |
| Total payment | $14,192 | $13,701 |
| DSCR at $16,500 qualifying income | 1.16x | 1.20x |
Large homes in forested areas face wildfire underwriting from insurers, and premiums can be significant. Steep or private roads, long driveways and distance from a fire station all matter. Get a quote early and use the full premium in your numbers.
Before you buy, ask your insurer whether the home can be covered at all, and at what cost. A premium that doubles after a nearby fire season changes the payment, and on a large balance that can move the ratio below the program minimum. Defensible space, metal roofing and good road access usually help.
Distance to the nearest fire station and the quality of the road in winter matter for guests as well as insurers.
Large Black Hills homes often have few direct comparable sales. Acreage, outbuildings, wells and private roads add complexity. Property-type and acreage limits vary by program, and some lenders require more review on large balances. Bring booking history, recent sales of similar homes and details on improvements.
Expect the appraiser to look at sales of large homes across a wide area, sometimes in different towns. Detailed notes on construction quality, recent improvements and guest capacity help support the value.
If you own several Rapid City rentals, combining them under a blanket portfolio loan can reach jumbo scale with long-term lease income that is steadier than nightly bookings. Five or more properties can share one loan with release provisions for future sales.
Blanket loans include release provisions that set how much must be paid down to remove one property when you sell it. Read them before you sign, especially if you plan to sell or trade any of the properties in the next few years.
Larger loans get a closer look at reserves, experience and the property's income history. Pricing is set case by case. Investors with a track record of operating vacation rentals or managing several properties usually have the smoothest path.
A track record matters most here. Show past booking performance on other rentals, how you manage guests and cleaning, and how you handle the slow season.
Investors new to large vacation homes can still qualify, but expect more questions about management plans and reserves.
Send the property details, income history and your plan through the form below or call (877) 298-1001. Our investor loans are business-purpose loans on non-owner-occupied property. See our South Dakota jumbo page for statewide notes.
Tell us whether the home already operates as a licensed rental or will be new to the market, and include any booking history you have. We will show how the loan size changes at a few leverage levels.
Yes, on some programs that use short-term rental income, if the home is licensed and the nightly use is allowed.
Larger loans carry more review and often lower maximum LTV. It varies by program.
It can. Programs look at annual income or projections, so winter months count as much as summer.
Not for single homes. In town, jumbo balances usually come from portfolios of several rentals.
No. Jumbo DSCR loans still qualify on property income, with credit and reserves reviewed.
Yes. Purchase, rate-and-term and cash-out are available, with leverage that varies by program.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
On some blanket programs, mixed portfolios are possible. Ask about the specific properties and how each would be qualified.
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.