How Much Cash Do You Need to Buy in Sioux Falls?

How much cash do you need to buy a house in Sioux Falls in 2026?

For a $335,000 Sioux Falls home — right around the June 2026 median — plan on roughly $20,000 to $30,000 in total cash to close with a low-down-payment loan. That breaks down to about $10,000 to $17,000 for a 3–5% down payment plus $11,000 to $14,000 in closing costs. Put 20% down and you’re closer to $79,000, but you skip PMI. Zero-down VA and USDA loans, seller concessions, and South Dakota down payment assistance can all shrink the number you actually bring to the table.

By Tyce Ortman | July 29, 2026

The down payment gets all the attention, but it’s only part of what you need in the bank to buy a home in Sioux Falls. Ask “how much cash do I really need?” and the honest answer is: down payment, plus closing costs, plus a little cushion — minus anything the seller or an assistance program kicks in. This is one of the most common questions I hear from first-time buyers across the Sioux Falls area, and the number surprises people in both directions.

Let’s build it from the ground up using a real Sioux Falls example. The median home here sold for about $335,000 in June 2026, so I’ll use that as our working number.

The four cash pieces you actually need

Your total “cash to close” is made of four things. Two are big, one is refundable-into-the-deal, and one just needs to sit in your account.

1. The down payment. This is the chunk everyone knows about, and it swings the most depending on your loan:

Conventional 97 (3% down): about $10,050 on a $335,000 home. Needs roughly a 620 credit score and comes with PMI until you hit 20% equity.
FHA (3.5% down): about $11,725, plus an upfront mortgage insurance premium that’s usually financed into the loan rather than paid in cash.
VA or USDA (0% down): $0 for eligible veterans, or for qualifying properties in the smaller towns and rural edges around the metro — think Hartford, Colman, or acreage outside the city limits.
Conventional 20% down: $67,000. Big number, but it eliminates PMI entirely and gives you a smaller payment.

There’s no prize for the biggest down payment. The right one depends on how much cash you want to keep in reserve, whether you’re trying to avoid PMI, and how the monthly payment pencils out for you.

2. Closing costs. These are the fees to originate your loan and transfer the home, and for buyers in Sioux Falls they typically run 2% to 5% of the purchase price — averaging around 3.7%. On a $335,000 home, that’s roughly $11,000 to $14,000 in a typical scenario. Here’s where that money goes:

Loan origination and underwriting: often around 1% of the loan amount
Appraisal: $350–$600
Home inspection: $300–$500 (optional, but do it)
Lender’s title insurance: $300–$1,500, handled through your title company — First Dakota Title here in Sioux Falls, or Abstract Title if you’re buying out toward Madison
Escrow, recording, and settlement fees in Minnehaha or Lincoln County
Prepaids: prorated property taxes, a full year of homeowners insurance up front, and prepaid mortgage interest — often the largest slice of the closing-cost pie

One local advantage worth knowing: South Dakota has no statewide buyer transfer tax. The only transfer charge is the state real estate transfer fee of $0.50 per $500 of price — about $335 on our example home — and that’s customarily the seller’s cost, not yours.

3. Earnest money — which isn’t really “extra.” When your offer is accepted, you’ll put down earnest money, usually 1–3% of the price in this market, so somewhere around $3,350 to $10,050 on a $335,000 home. Here’s the part people miss: that deposit gets credited toward your down payment and closing costs at the table. You’re not paying it on top — you’re paying part of your cash-to-close early. It just leaves your account weeks before closing day.

4. Cash reserves. Many lenders want to see savings left over after closing — commonly about two months of your full mortgage payment (principal, interest, taxes, and insurance). It’s not always a hard requirement, but it strengthens your file, and honestly, you don’t want to close on a house with an empty bank account. Budget a cushion beyond the down payment and closing costs.

Putting it together on a $335,000 home

Here’s what the total cash to close actually looks like across the common paths, before any seller help:

3% down conventional: ~$10,050 down + ~$12,000 closing = roughly $22,000
3.5% down FHA: ~$11,725 down + ~$12,000 closing = roughly $23,700 (upfront MIP financed)
5% down conventional: ~$16,750 down + ~$12,000 closing = roughly $28,750
20% down conventional: ~$67,000 down + ~$12,000 closing = roughly $79,000, no PMI
0% down VA/USDA: closing costs only, roughly $12,000 — and even that can often be gifted, seller-paid, or partly rolled in

Remember, your earnest money is already inside those totals, not added to them. And these are pre-negotiation numbers. The real figure at your closing can land lower.

How to bring the cash number down

The sticker figures above are the starting point, not the finish line. A few levers move it in your favor:

Seller concessions. In Sioux Falls’ 2026 market — inventory down about 30% to 892 homes, but the average listing still taking 84 days to sell — buyers often have room to ask a seller to cover part of the closing costs. On a slower-moving listing, a seller credit of a few thousand dollars toward your closing is a very real possibility, and it comes straight off your cash to close. You can also finance some of those costs into the loan; I break that down in my post on rolling closing costs into your loan.

Down payment assistance. South Dakota Housing offers down payment and closing-cost assistance of 3% or 5% of the loan amount as a 0%-interest second loan, layered onto their Fixed Rate Plus first mortgage. The current first-time-buyer purchase-price cap is $410,000, which covers the large majority of Sioux Falls homes. There’s also a Mortgage Credit Certificate that turns part of your annual mortgage interest into a federal tax credit. You apply through a participating lender — worth a conversation before you assume you need every dollar up front.

Gift funds. Most loan programs let you use a documented gift from family toward your down payment and closing costs. If a parent is helping, that money can do a lot of the heavy lifting.

One more thing to plan for: some of this cash comes out of pocket before closing day. Your earnest money, appraisal fee, and inspection are paid during the process, not at the table. So even though they count toward your total, you’ll want that money accessible early — not locked up where you can’t reach it. It’s also why understanding how your escrow account works matters, since part of your closing cash goes toward funding it.

Your actual number depends on your loan type, your credit, the specific home, and what we can negotiate with the seller. That last piece is exactly where having someone who knows this market pays for itself — the difference between the textbook figure and your real closing number is often several thousand dollars, and a lot of it is negotiable. Before you talk yourself out of buying because the cash feels out of reach, it’s worth running your real numbers. Many Sioux Falls buyers need less than they think.

Frequently asked questions

How much cash do I really need to buy a $335,000 home in Sioux Falls?

Plan on roughly $20,000 to $30,000 in total cash to close with a low-down-payment loan — about $10,000 to $17,000 for a 3–5% down payment plus $11,000 to $14,000 in closing costs. A 20% down payment pushes the total closer to $79,000 but eliminates PMI. Seller concessions or down payment assistance can lower the number.

Is earnest money extra, on top of my down payment and closing costs?

No. Earnest money is a deposit you pay up front — usually 1–3% of the price in the Sioux Falls area — that gets credited toward your down payment and closing costs at the table. It’s money you pay early, not money you pay twice. A $5,000 earnest deposit reduces the check you bring to closing by $5,000.

Can I buy a house in Sioux Falls with no money down?

Yes, in some cases. VA loans for eligible veterans and USDA loans for qualifying properties around the Sioux Falls area both allow zero down. First-time buyers can also stack South Dakota Housing assistance — 3% or 5% of the loan as a 0%-interest second loan — onto a low-down loan. You’ll still need cash for closing costs and earnest money unless a seller credit or gift covers them.

What are cash reserves and do Sioux Falls lenders require them?

Reserves are savings a lender wants to see left over after closing — often two months of your full mortgage payment, meaning principal, interest, taxes, and insurance. Not every loan requires them, but a couple of months of payments in the bank strengthens your file and protects you from an empty account on move-in day. Ask your lender what your specific program requires.

Does South Dakota charge buyers a transfer tax at closing?

No. South Dakota has no statewide buyer transfer tax. The only transfer charge is the state real estate transfer fee of $0.50 per $500 of sale price, and that’s customarily paid by the seller. On a $335,000 home that fee is about $335 — and it’s not part of your buyer cash to close.

Ready to run your real numbers?

The cash you need to buy in Sioux Falls comes down to your loan, your down payment, and what we can negotiate — and the honest figure is often lower than the one keeping you on the sidelines. If you’re buying or selling in Sioux Falls or the surrounding area, I’m happy to walk you through this. Reach out anytime: tyceortman@gmail.com

About Tyce Ortman — Tyce Ortman is a real estate agent with eXp Realty serving the greater Sioux Falls, South Dakota area and the Madison community. He specializes in helping first-time home buyers and sellers, with a focus on pricing properties right and finding each client the perfect home. Connect with Tyce at tyceortman@gmail.com.