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Multifamily & Apartment Financing in South Dakota

Commercial Loan Direct (CLD) provides apartment loans in South Dakota. Current apartment loan rates in South Dakota range from 4.93% to 12.95%, depending on the loan program.

South Dakota Apartment Loan Rates

Loan Types Rates LTV Loan Amount
Fannie Mae 5.66% - 6.46% 80% $700,000+
Freddie Mac 5.96% - 9.43% 80% $1,000,000+
FHA 4.84% - 6.19% 83.3% $5,000,000+
Conduit / CMBS 5.81% - 7.74% 75% $2,000,000+
Insurance 5.31% - 8.59% 75% $5,000,000+
USDA 6.2% - 8.95% 85% $1,000,000+
Bridge 5.95% - 12.95% 80% $1,500,000+
Construction 5.7% - 8.95% 83.3% $1,000,000+
Conventional 4.93% - 8.95% 80.0% $1,000,000+

For more in-depth multifamily interest rates, please visit our Apartment Loan Rates page.

Note: The commercial mortgage rates displayed in this website should be used as a guideline and do not represent a commitment to lend. Commercial Loan Direct and CLD Financial, LLC are not liable for any commercial mortgage interest rate or data entry errors that might affect the displayed commercial loan rates. Commercial loan rates may change at any time and without notice.

Additional Multifamily Types

Additional Multifamily Mortgages

Locations Served in South Dakota

We are proud to be serving the state of South Dakota. Here are our commercial loan statistics for this state.

South Dakota Cities and Towns Served

14

Multifamily Commercial Loans in South Dakota (Summary)

Multifamily financing in South Dakota is available for residential properties with five or more units and is primarily underwritten based on the property’s net operating income (NOI) and financial stability. Lenders focus on debt service coverage ratio (DSCR), occupancy history, rent performance, borrower experience, and the economic strength of the local market.

Common Multifamily Loan Options

  • Agency loans (Fannie Mae and Freddie Mac): Best suited for stabilized properties with strong occupancy and consistent operating history. These loans often provide long terms, competitive rates, and higher leverage for qualified assets.
  • Local and regional bank financing: Community and regional lenders play a significant role in South Dakota, often offering relationship-based lending and flexible structures for smaller properties.
  • Bridge loans: Short-term financing designed for value-add projects, lease-up situations, or property repositioning, with the goal of refinancing into permanent debt once stabilized.
  • CMBS or debt fund loans: Typically used for larger loan amounts or more complex scenarios, offering flexible underwriting but sometimes including stricter prepayment terms.
  • Construction and rehabilitation financing: Used for new development or significant renovations, generally requiring borrower experience, strong liquidity, and a clear exit strategy.

Key Underwriting Factors

  • Cash flow and DSCR: Reliable income sufficient to support debt payments is essential.
  • Occupancy and collections: Stable tenant demand and consistent rent collections are closely evaluated.
  • Borrower strength: Net worth, liquidity, and multifamily ownership or management experience influence loan approval and structure.
  • Property condition: Deferred maintenance or capital improvement needs may impact loan proceeds or require repair reserves.
  • Market stability: Population trends, employment drivers, and local economic diversity are important considerations.

Typical Uses for Multifamily Financing

  • Acquisition: Purchase stabilized or transitional apartment properties.
  • Refinance: Replace existing debt, improve loan terms, or access equity through cash-out.
  • Value-add improvements: Fund unit renovations, operational upgrades, or repositioning strategies.
  • New construction: Finance ground-up development with a plan to refinance after lease-up and stabilization.

Market-Specific Considerations in South Dakota

South Dakota’s multifamily market is centered around key population areas such as Sioux Falls and Rapid City, where steady job growth and regional economic activity support rental demand. Because many markets are smaller, lenders often take a conservative approach, placing strong emphasis on occupancy history, realistic rent projections, and the long-term stability of local employers and population trends.

How to Improve Loan Approval and Terms

  • Provide complete financial documentation: Current rent roll, trailing 12-month operating statements, and a capital improvement plan if applicable.
  • Support projections with local data: Use market comparables to justify rent and occupancy assumptions.
  • Maintain adequate liquidity: Post-closing reserves and operating capital strengthen lender confidence.
  • Match financing to the strategy: Bridge loans for transitional properties, long-term agency or bank financing for stabilized assets.

Lending Cities

Commercial loan direct provides services in the following South Dakota cities. Please note we may be able to provide services in other cities as well by request. Rates are dependent on the market in your locale, feel free to use the provided South Dakota economic reports to get a better understanding of your market.

  • Aberdeen
  • Alexandria
  • Armour
  • Aurora County
  • Baltic
  • Beadle County
  • Belle Fourche
  • Bennett County
  • Beresford
  • Bison
  • Blackhawk
  • Bon Homme County
  • Box Elder
  • Brandon
  • Britton
  • Brookings
  • Brookings County
  • Brown County
  • Brule County
  • Buffalo
  • Buffalo County
  • Burke
  • Butte County
  • Campbell County
  • Canton
  • Chamberlain
  • Charles Mix County
  • Clark
  • Clark County
  • Clay County
  • Clear Lake
  • Codington County
  • Colonial Pine Hills
  • Corson County
  • Crooks
  • Custer
  • Custer County
  • Dakota Dunes
  • Davison County
  • Day County
  • De Smet
  • Deadwood
  • Dell Rapids
  • Deuel County
  • Dewey County
  • Douglas County
  • Dupree
  • Eagle Butte
  • Edmunds County
  • Elk Point
  • Fall River County
  • Faulk County
  • Faulkton
  • Flandreau
  • Fort Pierre
  • Fort Thompson
  • Freeman
  • Garretson
  • Gettysburg
  • Grant County
  • Gregory
  • Gregory County
  • Groton
  • Haakon County
  • Hamlin County
  • Hand County
  • Hanson County
  • Harding County
  • Harrisburg
  • Hartford
  • Hayti
  • Highmore
  • Hot Springs
  • Howard
  • Hughes County
  • Huron
  • Hutchinson County
  • Hyde County
  • Ipswich
  • Jackson County
  • Jerauld County
  • Jones County
  • Kadoka
  • Kennebec
  • Kingsbury County
  • Lake Andes
  • Lake County
  • Lawrence County
  • Lead
  • Lemmon
  • Lennox
  • Leola
  • Lincoln County
  • Lyman County
  • Madison
  • Marshall County
  • Martin
  • McCook County
  • McIntosh
  • McPherson County
  • Meade County
  • Mellette County
  • Milbank
  • Miller
  • Miner County
  • Minnehaha County
  • Mission
  • Mitchell
  • Mobridge
  • Moody County
  • Mound City
  • Murdo
  • North Eagle Butte
  • North Sioux City
  • North Spearfish
  • Oglala
  • Oglala Lakota County
  • Olivet
  • Onida
  • Parker
  • Parkston
  • Pennington County
  • Perkins County
  • Philip
  • Pierre
  • Pine Ridge
  • Plankinton
  • Platte
  • Porcupine
  • Potter County
  • Rapid City
  • Rapid Valley
  • Redfield
  • Roberts County
  • Rosebud
  • Salem
  • Sanborn County
  • Selby
  • Sioux Falls
  • Sisseton
  • Spearfish
  • Spink County
  • Springfield
  • Stanley County
  • Sturgis
  • Sully County
  • Summerset
  • Tea
  • Timber Lake
  • Todd County
  • Tripp County
  • Turner County
  • Tyndall
  • Union County
  • Vermillion
  • Volga
  • Wagner
  • Walworth County
  • Watertown
  • Webster
  • Wessington Springs
  • White River
  • Winner
  • Woonsocket
  • Yankton
  • Yankton County
  • Ziebach County

Commercial Loan FAQs in South Dakota

Multifamily interest rates in South Dakota vary based on loan type, property type, loan-to-value, debt service coverage ratio, borrower strength, and market conditions. They range from approximately 4.93% to 12.95%.

Borrowers in South Dakota can access Conventional, CMBS/Conduit, Insurance, FHA/HUD, USDA, Bridge, Construction, and SBA financing based on property type, leverage, and occupancy.

Multifamily loan rates in South Dakota depend on loan type, property cash flow, debt service coverage ratio, loan-to-value, borrower strength, and market conditions.

Yes. Owner-occupied financing is available in South Dakota, including Conventional, Insurance, SBA, USDA, and selected agency programs when eligibility requirements are met.

Yes. Refinance options in South Dakota include rate-and-term and cash-out structures, subject to underwriting, property performance, and lender program guidelines.

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Fernando and Leanne are Amazing

Fernando and Leanne are amazing. I had many small businesses that need refinancing over the years. I have met many Brokers and there is always a catch. ALWAYS!… Use them! Once you do you will work with them forever

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If you searching for a great experience Commercial Loan Direct is the place. Leanne took care of me and honestly had the greatest experience. She handled all of my needs in a smooth and timely manner listened and addressed any concerns I had about the process and was very patient. I can be quite a handful at times and Leanne was so professional and kind hearted. I'd 100% recommend this company. Thank you again.

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We were in unfamiliar territory when it came to refinancing. Commercial Loan Direct streamlined the whole process for us. Leann connected us with lenders that were the right fit for us. The money and time we saved was so worth it. I highly recommend them

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