South Dakota mortgage lending data
Midwest region · HMDA 2023 reporting year
In South Dakota, the 2023 mortgage denial rate was 12.6% — among the lowest denial rates in the country (-7.0 points vs the 19.6% national rate), ranking it #48 of 51. Lenders originated about 12,402 home-purchase and refinance loans (rank #45). The home-purchase denial rate was 9.3% and refinance 21.3%. By loan type, conventional loans were 78.6%, FHA 11.7%, VA 8.0% and USDA/RHS 1.6%. Informational data, not lending advice.
Source: HMDA Data Browser (FFIEC / CFPB). Data as of June 2026.
South Dakota mortgage lending at a glance
| Indicator | South Dakota |
|---|---|
| Total originations (purchase + refinance, 2023) | 12,402 |
| Denied applications | 1,792 |
| Mortgage denial rate | 12.6% |
| Denial-rate rank (1 = highest of 51) | #48 |
| Home-purchase denial rate | 9.3% |
| Refinance denial rate | 21.3% |
| Volume rank (1 = most loans of 51) | #45 |
Source: HMDA Data Browser (FFIEC / CFPB) (2023 reporting year). Data as of June 2026.
Source: HMDA Data Browser (2023), public domain. Denial rate = denied ÷ (originated + denied). Informational only — verify before relying on it.
What the denial rate means
South Dakota's mortgage denial rate of 12.6% means that for every 100 applications that were either approved-and-originated or denied, about 13 were turned down. That is much lower compared with the national figure of 19.6%. Denial rates are driven by applicant credit scores, debt-to-income ratios, the loan type and local home prices — not only by how strict lenders are. Refinance applications are often denied at a different rate than purchase loans: in South Dakota the purchase denial rate was 9.3% versus 21.3% for refinances.
South Dakota loan-type mix
How South Dakota's 12,402 originations break down by loan program. A higher FHA or VA share usually points to more first-time buyers, lower down payments, or a large veteran population.
| Loan type | Originations | Share |
|---|---|---|
| Conventional | 11,797 | 78.6% |
| FHA | 1,759 | 11.7% |
| VA | 1,208 | 8.0% |
| USDA / RHS | 246 | 1.6% |
Source: HMDA Data Browser (FFIEC / CFPB) (2023). Data as of June 2026.
See FHA vs VA vs conventional for what each program is. Shares are over loans with a reported type and may not sum to exactly 100% due to rounding.
States with a similar denial rate to South Dakota
| State | Denial rate | Originations | FHA share | VA share |
|---|---|---|---|---|
| South Dakota (this state) | 12.6% | 12,402 | 11.7% | 8.0% |
| Iowa | 12.7% | 50,783 | 8.3% | 4.1% |
| Minnesota | 12.2% | 81,211 | 8.4% | 3.6% |
| Nebraska | 12.1% | 28,741 | 10.4% | 6.8% |
| Alaska | 13.5% | 8,342 | 12.2% | 23.2% |
| North Dakota | 11.5% | 9,647 | 12.3% | 7.5% |
Frequently asked questions
What was the mortgage denial rate in South Dakota in 2023?
In 2023, the mortgage denial rate in South Dakota was about 12.6% — that is, 1,792 applications were denied out of 14,194 that were either originated or denied. That is -7.0 points versus the national rate of 19.6%, and ranks South Dakota #48 of 51 from highest to lowest. Figures are from HMDA; verify before relying on them.
How many mortgages were originated in South Dakota?
Lenders originated about 12,402 home-purchase and refinance loans in South Dakota in 2023 (HMDA reporting year), ranking it #45 of 51 by volume. Of those, the home-purchase denial rate was 9.3% and the refinance denial rate was 21.3%.
What share of South Dakota mortgages are FHA or VA loans?
In South Dakota, FHA loans made up about 11.7% of originations and VA loans about 8.0%, with conventional loans the largest share at 78.6% and USDA/RHS loans 1.6%. Higher government-backed shares often reflect more first-time and lower-down-payment buyers.
Is it harder to get a mortgage in South Dakota than elsewhere?
South Dakota's denial rate of 12.6% is among the lowest denial rates in the country. Denial rates reflect applicant credit, income and debt, loan type and local home prices as much as lender behavior, so a higher rate does not by itself mean stricter lenders. States with the most similar denial rates to South Dakota are Iowa, Minnesota, Nebraska.
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Sources & accuracy
All counts are from the HMDA Data Browser (FFIEC / CFPB, 2023 reporting year, public domain). Denial rate, loan-type shares and ranks are transparent calculations over those counts (see methodology). This page is informational and is not financial or lending advice — verify with a licensed lender before making a decision.
Last updated: 2026-06-20