Madison FHA Loan Rates, Closing Costs & Stats

Madison, IN

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    • FHA loans are mortgages created in the 1930's to help insulate lenders from credit risks and help promote home ownership. The Federal Housing Administration (hence, FHA) allows for lower downpayments and credit scores-- making these loans much more accessible than traditional mortgages.

    FHA loans typically need just a 3.5% downpayment with credit scores of 580 or better. For credit scores between 500-579, the downpayment needs to be at least 10%.

    While FHA loans make home ownership much more accessible to first-time homebuyers, they do require PMI (purchase money insurance)-- an additional insurance premium that is paid to the FHA to help cover defaults.

    For additional requirements as defined by the FHA, click here.

    Madison's 28 lenders originated 92 FHA loans during 2023. The total origination value was $16,570,000, with an average FHA loan value of $180,109.

    Madison FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Madison averaged 6.48% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

    Madison's average FHA mortgage closing costs are $5,950.

    The average rate for the prior week (2024-11-01) was 6.66% and one month ago for the week of 2024-10-04, the average rate was 6.28%.

    The average rate one year ago was 7.32%.

    For refis of the same type during the week of 2024-11-08, the average rate was 6.63%.

    Click on whitespace and scroll within the chart to zoom in/out. Larger bubbles equate with more originations.

    Madison FHA Loan Lenders by Rates & Fees

    The below table looks at the average fees/closing costs and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Madison level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    RUOFF MORTGAGE COMPANY, INC. 15 7.13% $5,174
    GENEVA FINANCIAL, LLC 15 6.79% $8,794
    QUICKEN LOANS, LLC 9 6.44% $7,653
    UNITED WHOLESALE MORTGAGE, LLC 6 6.45% $8,618
    FREEDOM MORTGAGE CORPORATION 5 6.80% $8,644
    BROKER SOLUTIONS, INC. 4 6.72% $8,117
    Wells Fargo Bank 2 6.63% $10,431
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 2 6.75% $5,069
    Equity Prime Mortgage LLC 2 6.56% $8,683
    LOANDEPOT.COM, LLC 2 6.69% $11,890
    Carrington Mortgage Services, LLC 2 5.81% $9,028
    Mortgage Research Center, LLC 2 7.88% $3,905
    First Financial Bank 2 6.38% $6,853
    PENNYMAC LOAN SERVICES, LLC 2 6.69% $11,450
    Willamette Valley Bank 1 6.25% $10,229
    AMERISAVE MORTGAGE CORPORATION 1 5.25% $11,629
    CARDINAL FINANCIAL 1 7.63% $6,921
    Century Mortgage Company DBA Century Lending Company 1 6.25% $7,752
    FAIR WAY LENDING LLC 1 6.99% $7,051
    German American Bank 1 7.00% $6,114
    GVC MORTGAGE, INC. 1 7.63% $7,756
    HOMESIDE FINANCIAL, LLC 1 6.75% $11,359
    LOANPAL, LLC 1 6.25% $2,910
    MUTUAL OF OMAHA MORTGAGE, INC. 1 7.25% $6,914
    NEWREZ LLC 1 7.25% $9,930
    PLANET HOME LENDING, LLC 1 6.38% $8,746
    Prosperity Home Mortgage, LLC 1 6.12% $7,166
    AMERICAN FINANCING CORPORATION 1 6.75% $5,857

    The top Madison FHA lender as defined by loan originations is RUOFF MORTGAGE COMPANY, INC., with 15 FHA loans originated. Their average total fees are $5,174, which is $3,620 lower than the next largest lender, GENEVA FINANCIAL, LLC.

    The lowest fee Madison FHA lenders (with over 10 loans originated) are RUOFF MORTGAGE COMPANY, INC. ($5,174), GENEVA FINANCIAL, LLC ($8,794), .

    The lowest rate Madison FHA lenders (with over 10 loans originated) are GENEVA FINANCIAL, LLC (6.79%), RUOFF MORTGAGE COMPANY, INC. (7.13%), .

    Madison FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    MADISON, IN JEFFERSON 2022 $420,680 $538,650 $651,050 $809,150
    MADISON, IN JEFFERSON 2023 $472,030 $604,400 $730,525 $907,900

    FHA Loan Requirements

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money may be gifted by a family member. (Traditional mortgages do not permit gifted down payments)
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers’ debt to income ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent.
  • Bborrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit.
  • The purchased property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).