Madison FHA Loans

MADISON, WI

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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 85 lenders originated 904 FHA loans during 2021. The total origination value was $228,340,000, with an average FHA loan value of $252,588.

    Madison FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Madison averaged 5.31% for the week of 2022-08-05, compared to the national average (all FHA variants) of 5.305% for the same period.

    The average rate for the prior week (2022-07-29) was 5.35% and one month ago for the week of 2022-07-01, the average rate was 5.34%.

    The average rate one year ago was 3.15%.

    For refis of the same type during the week of 2022-08-05, the average rate was 4.77%.

    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 and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Madison level.

    Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
    QUICKEN LOANS, LLC 93 2.62% $6,471
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 78 3.20% $7,436
    GUILD MORTGAGE COMPANY 50 3.06% $10,559
    THOMPSON KANE & COMPANY, LLC 48 2.91% $7,669
    FREEDOM MORTGAGE CORPORATION 45 2.76% $5,000
    CALIBER HOME LOANS, INC. 36 2.60% $5,266
    Barrington Bank & Trust Company, N.A. 32 3.25% $8,142
    NEWREZ LLC 22 3.03% $6,371
    Prosperity Home Mortgage, LLC 22 3.14% $7,346
    Mr. Cooper ( Nationstar Mortgage ) 20 3.44% $4,256
    DAS Acquisition Company, LLC 18 3.58% $7,554
    Paramount Residential Mortgage Group, Inc. 17 3.40% $7,367
    LAKEVIEW LOAN SERVICING, LLC 17 2.94% $4,610
    PENNYMAC LOAN SERVICES, LLC 17 3.09% $5,000
    CORNERSTONE HOME LENDING, INC. 16 3.29% $8,015
    GUARANTEED RATE, INC. 15 2.92% $7,927
    INLANTA MORTGAGE, INC. 14 3.29% $7,025
    UNITED WHOLESALE MORTGAGE, LLC 13 2.72% $6,231
    CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 11 3.41% $8,540
    First Guaranty Mortgage Corporation 11 2.72% $5,878
    BROKER SOLUTIONS, INC. 10 3.01% $8,525
    HOMEBRIDGE FINANCIAL SERVICES, INC. 9 2.56% $6,327
    HOME POINT FINANCIAL CORPORATION 9 2.90% $5,789
    Old National Bank 8 3.09% $7,023
    Carrington Mortgage Services, LLC 7 3.09% $5,761
    LOANDEPOT.COM, LLC 6 3.02% $6,331
    Bank Five Nine 6 3.00% $6,769
    PLANET HOME LENDING, LLC 6 2.79% $5,801
    AMERISAVE MORTGAGE CORPORATION 6 3.31% $5,972
    NATIONS RELIABLE LENDING, LLC 5 3.43% $8,049
    PRIMARY RESIDENTIAL MORTGAGE, INC. 5 4.00% $9,858
    V.I.P. MORTGAGE, INC. 5 3.30% $9,560
    LAND HOME FINANCIAL SERVICES, INC. 4 3.28% $8,996
    VILLAGE CAPITAL & INVESTMENT LLC 4 3.06% $2,170
    MUTUAL OF OMAHA MORTGAGE, INC. 4 2.91% $9,618
    U.S. Bank 4 3.44% $8,400
    The Federal Savings Bank 4 3.13% $8,326
    AMERICAN FINANCIAL NETWORK, INC. 4 2.91% $11,148
    SUN WEST MORTGAGE COMPANY, INC. 4 2.59% $5,010
    Associated Bank 4 2.75% $6,127
    Flagstar Bank, FSB 3 3.21% $6,176
    AMERIFIRST FINANCIAL CORPORATION 3 3.54% $10,057
    ENVOY MORTGAGE, LTD 3 4.08% $8,892
    CROSSCOUNTRY MORTGAGE, LLC 3 2.66% $10,416
    WISCONSIN MORTGAGE CORPORATION 2 2.50% $4,538
    American Mortgage & Equity Consultants, Inc. 2 3.31% $7,727
    AMERICAN PACIFIC MORTGAGE CORPORATION 2 3.06% $6,815
    A + MORTGAGE SERVICES, INC. 2 3.38% $7,711
    Bank of England 2 3.25% $7,249
    CMG MORTGAGE, INC. 2 3.94% $6,518
    EVERETT FINANCIAL, INC. 2 3.69% $6,934
    First Bank & Trust 2 3.19% $6,802
    First Federal Bank 2 3.63% $10,166
    JPMorgan Chase Bank 2 2.88% $7,363
    Key Mortgage Services, Inc. 2 2.94% $5,556
    LIBERTY HOME MORTGAGE CORPORATION 2 3.19% $8,373
    MID AMERICA MORTGAGE, INC. 2 2.81% $2,436
    Mortgage Research Center, LLC 2 3.06% $3,858
    TOTAL MORTGAGE SERVICES, LLC 2 2.94% $7,423
    TOWNE MORTGAGE COMPANY 2 3.06% $12,806
    PARKSIDE LENDING, LLC 1 2.38% $6,180
    NATIONS DIRECT MORTGAGE, LLC 1 2.75% $6,865
    PHH Mortgage Corporation 1 3.75% $8,160
    MORIA DEVELOPMENT, INC. 1 3.25% $6,210
    Manufacturers and Traders Trust Company 1 4.50% $5,643
    PRIMELENDING, A PLAINSCAPITAL COMPANY 1 3.38% $5,039
    Lend Smart Mortgage, LLC 1 3.63% $6,593
    FINANCE OF AMERICA MORTGAGE LLC 1 3.75% $5,155
    ROYAL UNITED MORTGAGE LLC 1 2.63% $9,462
    Servion, Inc. 1 2.75% $5,986
    SIRVA MORTGAGE, INC. 1 3.25% $8,262
    STEARNS LENDING, LLC 1 3.13% $6,519
    FBC MORTGAGE, LLC 1 3.13% $6,283
    EMBRACE HOME LOANS, INC. 1 3.00% $8,206
    The Union Bank Company 1 2.63% $9,387
    Citizens Bank 1 2.50% $10,600
    Wells Fargo Bank 1 3.00% $3,968
    AMERICAN FINANCING CORPORATION 1 3.25% $6,692
    CHURCHILL MORTGAGE CORPORATION 1 3.75% $5,643
    CELEBRITY HOME LOANS, LLC 1 2.63% $8,578
    VERITAS FUNDING, LLC 1 3.75% $11,688
    BNC National Bank 1 2.63% $9,409
    AXIA FINANCIAL, LLC 1 3.00% $5,034
    North American Savings Bank, F.S.B. 1 3.13% $7,595
    NATIONWIDE MORTGAGE BANKERS, INC. 1 3.25% $8,089

    The top Madison FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 93 FHA loans originated. Their average total fees are $6,471, which is $965 lower than the next largest lender, FAIRWAY INDEPENDENT MORTGAGE CORPORATION.

    The lowest fee Madison FHA lenders (with over 10 loans originated) are Mr. Cooper ( Nationstar Mortgage ) ($4,256), LAKEVIEW LOAN SERVICING, LLC ($4,610), FREEDOM MORTGAGE CORPORATION ($5,000), PENNYMAC LOAN SERVICES, LLC ($5,000) and CALIBER HOME LOANS, INC. ($5,266).

    The lowest rate Madison FHA lenders (with over 10 loans originated) are CALIBER HOME LOANS, INC. (2.60%), QUICKEN LOANS, LLC (2.62%), UNITED WHOLESALE MORTGAGE, LLC (2.72%), First Guaranty Mortgage Corporation (2.72%) and FREEDOM MORTGAGE CORPORATION (2.76%).

    Madison FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    MADISON, WI COLUMBIA 2022 $420,680 $538,650 $651,050 $809,150
    MADISON, WI DANE 2022 $420,680 $538,650 $651,050 $809,150
    MADISON, WI GREEN 2022 $420,680 $538,650 $651,050 $809,150
    MADISON, WI IOWA 2022 $420,680 $538,650 $651,050 $809,150

    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).