The Ultimate Career Guide for Loan Officers in Sioux Falls, SD

As a career analyst who’s watched the financial landscape of Sioux Falls for over a decade, I can tell you this city operates on a different rhythm than the coastal hubs. We don’t have Wall Street’s frenzy, but we have a rock-solid, community-focused financial sector that’s as reliable as the Big Sioux River. For a Loan Officer, this means stability, a manageable cost of living, and a market where relationships matter more than flash. This guide isn’t about selling you on the city; it’s about giving you the unvarnished data and local insights to decide if your career can take root here.

The Salary Picture: Where Sioux Falls Stands

Let’s start with the numbers that matter. The financial sector in Sioux Falls is robust, anchored by a mix of national banks, regional credit unions, and a thriving insurance and mortgage industry. According to national data and local market analysis, the financial landscape here is competitive but not cutthroat.

The median salary for a Loan Officer in Sioux Falls is $73,982/year. This breaks down to an hourly rate of $35.57/hour. It’s important to note this is the median, meaning half of all Loan Officers earn more, and half earn less. This figure sits slightly below the national average for the role, which is $76,200/year, but the lower cost of living more than compensates for that gap. The metro area supports approximately 412 jobs for Loan Officers, with a projected 10-year job growth of 3%. This isn't explosive growth, but it indicates a stable, demand-driven market rather than a volatile one.

Experience-Level Breakdown

Your earning potential will scale directly with your experience and specialization. Here’s how salaries typically break down within the Sioux Falls metro area:

Experience Level	Typical Salary Range	Key Responsibilities & Notes
Entry-Level (0-2 years)	$50,000 - $62,000	Focus on consumer loans (auto, personal), learning origination software, building initial client books. Often starts in a bank branch.
Mid-Level (3-7 years)	$65,000 - $85,000	Manages a portfolio of residential mortgages and small business loans. Proficiency in underwriting guidelines and local housing trends is key.
Senior-Level (8-15 years)	$80,000 - $110,000+	Handles complex commercial loans, jumbo mortgages, and high-net-worth clients. May lead a team or manage a dedicated book of business.
Expert/Portfolio Manager (15+ years)	$110,000 - $140,000+	Focus on strategic lending, managing large commercial portfolios, and business development. Often works for a major bank or credit union.

Comparison to Other SD Cities

To put Sioux Falls in perspective, it’s the financial hub of South Dakota. Here’s how it stacks up against other major cities in the state:

City	Median Salary	Cost of Living Index (US Avg = 100)	Market Vibe
Sioux Falls (Falls)	$73,982	90.3	Largest market, most diverse opportunities, competitive but stable.
Rapid City	$70,100	92.1	Tourism and energy sector-driven lending; smaller, more tight-knit community.
Aberdeen	$65,500	88.5	Agricultural and small business lending focus; smaller job market (fewer than 50 Loan Officer roles).
Watertown	$68,200	89.0	Mixed agribusiness and retail lending; growing but limited senior roles.

Sioux Falls is the undisputed leader in both salary and career opportunity. Rapid City is a solid second but lacks the corporate headquarters and volume that Sioux Falls enjoys.

The Real Take-Home: After Taxes and Rent

A salary number is meaningless without understanding your actual purchasing power. Let’s break down a monthly budget for a Loan Officer earning the median salary of $73,982.

Assumptions: Filing as a single filer, using standard deductions for 2024. Federal, State (SD has a progressive tax, max 4.5%), and FICA (7.65%) taxes applied.

• Gross Monthly Income: $73,982 / 12 = $6,165
• Estimated Monthly Taxes (Fed, State, FICA): ~$1,450 (Approx. 23.5% effective rate)
• Net Monthly Income: ~$4,715

Now, let’s layer in the core expense: rent. The average rent for a 1-bedroom apartment in Sioux Falls is $884/month.

Monthly Budget Breakdown (Median Salary)

Category	Estimated Monthly Cost	Notes
Net Income	$4,715	Post-tax take-home
Rent (1BR Average)	$884	Varies by neighborhood (see below)
Utilities (Gas, Electric, Internet)	$220	Sioux Falls has affordable utilities; winter heating is the main variable.
Car Payment & Insurance	$500	Essential in a car-dependent city. Insurance rates are lower than national average.
Groceries & Household	$450	Sioux Falls has competitive grocery prices (Hy-Vee, Fareway, Aldi).
Health Insurance (Employer Plan)	$350	If not fully covered by employer.
Debt/Student Loans	$300	Varies widely; included as a placeholder.
Retirement Savings (401k - 10%)	$617	Recommended for long-term stability.
Discretionary Spending	$994	Covers dining out, entertainment, hobbies, travel.
Remaining Buffer	$0	This is a tight, realistic budget.

Can they afford to buy a home? Absolutely. With a $4,715 net income and $884 rent, your debt-to-income ratio is low. The median home price in Sioux Falls hovers around $285,000. A 20% down payment ($57,000) is a stretch on a $73,982 salary without significant savings, but it's achievable over 3-5 years. More commonly, Loan Officers here, who understand mortgage products, often use FHA (3.5% down) or conventional loans with 5-10% down. Your monthly mortgage payment (including taxes and insurance) for a $285,000 home with 10% down would be roughly $1,800-$1,900. This is manageable on a $6,165 gross income, especially if you have a working partner or a higher-than-median salary.

The Real Take-Home: After Taxes and Rent

A salary number is meaningless without understanding your actual purchasing power. Let’s break down a monthly budget for a Loan Officer earning the median salary of $73,982.

Assumptions: Filing as a single filer, using standard deductions for 2024. Federal, State (SD has a progressive tax, max 4.5%), and FICA (7.65%) taxes applied.

• Gross Monthly Income: $73,982 / 12 = $6,165
• Estimated Monthly Taxes (Fed, State, FICA): ~$1,450 (Approx. 23.5% effective rate)
• Net Monthly Income: ~$4,715

Now, let’s layer in the core expense: rent. The average rent for a 1-bedroom apartment in Sioux Falls is $884/month.

Monthly Budget Breakdown (Median Salary)

Category	Estimated Monthly Cost	Notes
Net Income	$4,715	Post-tax take-home
Rent (1BR Average)	$884	Varies by neighborhood (see below)
Utilities (Gas, Electric, Internet)	$220	Sioux Falls has affordable utilities; winter heating is the main variable.
Car Payment & Insurance	$500	Essential in a car-dependent city. Insurance rates are lower than national average.
Groceries & Household	$450	Sioux Falls has competitive grocery prices (Hy-Vee, Fareway, Aldi).
Health Insurance (Employer Plan)	$350	If not fully covered by employer.
Debt/Student Loans	$300	Varies widely; included as a placeholder.
Retirement Savings (401k - 10%)	$617	Recommended for long-term stability.
Discretionary Spending	$994	Covers dining out, entertainment, hobbies, travel.
Remaining Buffer	$0	This is a tight, realistic budget.

Can they afford to buy a home? Absolutely. With a $4,715 net income and $884 rent, your debt-to-income ratio is low. The median home price in Sioux Falls hovers around $285,000. A 20% down payment ($57,000) is a stretch on a $73,982 salary without significant savings, but it's achievable over 3-5 years. More commonly, Loan Officers here, who understand mortgage products, often use FHA (3.5% down) or conventional loans with 5-10% down. Your monthly mortgage payment (including taxes and insurance) for a $285,000 home with 10% down would be roughly $1,800-$1,900. This is manageable on a $6,165 gross income, especially if you have a working partner or a higher-than-median salary.

Where the Jobs Are: Sioux Falls's Major Employers

The job market for Loan Officers is concentrated, with a few key players dominating the landscape. Here are the major employers you should target:

1. Sanford Health: While primarily a healthcare giant, Sanford has a massive financial services arm. They offer internal financing for patients and have a robust commercial lending division focused on medical equipment and facility expansion. They’re a huge employer and value internal mobility.
2. Avera Health: Similar to Sanford, Avera is a major regional health system with its own financial services. They have opportunities for loan officers specializing in healthcare-related financing and internal patient lending programs.
3. The Home Loan Center (Part of the Federal Home Loan Bank of Des Moines): A major player in mortgage origination. They are a frequent employer of licensed loan officers and offer a structured, corporate environment. Hiring trends are steady, with a focus on experienced, licensed professionals.
4. First National Bank of Omaha (FNBO): Headquartered in Omaha but with a significant presence in Sioux Falls. FNBO is a major originator of commercial loans and has a strong retail banking division. They’re known for promoting from within and offer clear advancement paths.
5. Sioux Falls Federal Credit Union: One of the largest credit unions in the area. They focus heavily on member relationships, making it an ideal environment for Loan Officers who excel at community banking. They often hire for both consumer and mortgage loans.
6. Premier Bank (and other local/regional banks): Premier Bank, along with others like Western Bank, are community-focused institutions. They are excellent for Loan Officers who want to build a book of business quickly in a smaller, more agile environment.
7. Mortgage Companies (e.g., Guild Mortgage, Fairway Independent Mortgage): These non-bank lenders are active in the Sioux Falls housing market. They often have more flexibility in products and can be a great place for a Loan Officer with a strong referral network from real estate agents.

Insider Tip: The hiring trend in Sioux Falls is less about mass layoffs and more about strategic growth. The 3% job growth is real but slow. The best opportunities arise from retirements (a large portion of the local financial workforce is nearing retirement) and internal promotions. Networking here is critical—attend the South Dakota Mortgage Bankers Association events. It’s a small, tight-knit community where who you know can open doors faster than a cold application.

Getting Licensed in SD

South Dakota has a clear, regulated process for licensing Loan Officers. You cannot legally originate loans without the proper licenses, which are overseen by the South Dakota Division of Banking.

Required Licenses:

1. NMLS (Nationwide Multistate Licensing System) Account: You must create a free NMLS account. All your licenses and continuing education (CE) will be recorded here.
2. South Dakota State License: You will apply for a mortgage loan originator (MLO) license through the NMLS. This requires:
   • Pre-Licensing Education (PE): 20 hours of approved courses (must include 3 hours on ethics, 2 on nontraditional mortgage products, and 1 on South Dakota law).
   • National & State Exam: You must pass the NMLS National Mortgage Licensure System (MLO) exam (75% passing score) and a separate South Dakota state exam (90% passing score). The state exam is less common; most states have folded into the national exam, but SD maintains its requirement.
   • Credit Report & Background Check: You must authorize a nationwide background check through NMLS.
   • Fees: Expect to pay approximately $600 for initial licensing fees (NMLS, state, credit report, background check). This is a one-time upfront cost.
   • Surety Bond: Most employers will require you to be covered under their corporate surety bond, but as an independent contractor, you might need your own. This is typically not a cost borne by the employee if you join a firm.

Timeline to Get Started:

• Weeks 1-2: Complete 20 hours of pre-licensing education online.
• Weeks 3-5: Study intensively for the national and state exams. Schedule the exams for the same week.
• Week 6: Take and pass the exams. Submit your NMLS application for the South Dakota license.
• Weeks 7-8: Approval and processing. Once you have your NMLS number, you can legally originate loans under a sponsoring broker or bank.

Insider Tip: Many local banks (like FNBO or Sioux Falls FCU) will sponsor your license and cover the costs if you are hired. It’s a common practice. If you are moving and looking for a job, state in your cover letter that you are willing to obtain your SD license immediately.

Best Neighborhoods for Loan Officers

Where you live in Sioux Falls impacts your commute, lifestyle, and social network. The city is divided into several distinct areas, each with its own character.

Neighborhood	Vibe & Commute	Rent (1BR Estimate)	Why It Fits a Loan Officer
Downtown	Urban, walkable, historic. 5-10 min drive to most offices.	$950 - $1,200	Close to the financial district (First National Bank, local banks). Great for networking at happy hours. Younger, professional crowd.
The Empire	Mid-century charm, mature trees, centrally located. 10-15 min commute.	$850 - $1,000	Established, professional neighborhood. Quiet, family-friendly. Easy access to all major employers. Good for building a stable home base.
Southwest Sioux Falls	Newer developments, suburban sprawl, shopping centers. 15-25 min commute to downtown.	$800 - $950	More modern apartments, often with amenities (pools, gyms). Popular with young professionals and new families. Commute is easy but car-dependent.
Northwest Sioux Falls	Rapidly growing, mix of new and older homes. 20-30 min commute.	$750 - $900	Offers larger living spaces for the money. Attracts those who work at the airport, Sanford Health, or want a quieter, suburban feel.
East Sioux Falls	Older, more affordable, close to the Big Sioux River. 15-20 min commute.	$700 - $850	Budget-friendly option. Less trendy but offers a great value. Good for saving for a down payment.

Insider Tip: If you’re a Loan Officer looking to build a client base quickly, living in Downtown or The Empire puts you in the path of the most active real estate markets and community events. It’s where you’ll run into realtors, attorneys, and other professionals at the coffee shop or grocery store.

The Long Game: Career Growth

Sioux Falls offers a clear, if not exponentially fast, path for career growth. The 10-year job growth of 3% suggests stability, not rapid expansion. Your growth will be driven by specialization and reputation.

Specialty Premiums:

• Commercial Real Estate (CRE) Lending: This is where the highest earnings are. Specializing in financing for apartment complexes, retail centers, or agricultural land can push your salary well past the median, potentially into the $100,000+ range. Sanford Health and Avera are constantly expanding, creating perpetual demand for CRE loan officers.
• **USDA and FHA Loans