Madison FHA Loan Rates, Closing Costs & Stats

MADISON, WI

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 69 lenders originated 415 FHA loans during 2024. The total origination value was $127,385,000, with an average FHA loan value of $306,952.

Madison FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Madison averaged 0.26% for the week of 2025-06-20, compared to the national average (all FHA variants) of 0% for the same period.

Madison's average FHA mortgage closing costs are $8,043.

The average rate for the prior week (2025-06-13) was 6.64% and one month ago for the week of 2025-05-16, the average rate was 6.4%.

The average rate one year ago was 6.56%.

For refis of the same type during the week of 2025-06-20, the average rate was -0.4%.

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 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
QUICKEN LOANS, LLC 39 6.26% $12,836
THOMPSON KANE & COMPANY, LLC 33 6.80% $11,784
GUILD MORTGAGE COMPANY 31 6.58% $12,202
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 23 6.72% $10,487
PENNYMAC LOAN SERVICES, LLC 15 5.81% $11,509
Bell Bank 13 6.36% $12,131
Barrington Bank & Trust Company, N.A. 13 6.49% $14,277
FREEDOM MORTGAGE CORPORATION 13 6.33% $12,082
NEWREZ LLC 13 6.46% $10,066
UNITED WHOLESALE MORTGAGE, LLC 12 6.15% $12,844
CROSSCOUNTRY MORTGAGE, LLC 12 6.58% $13,054
Prosperity Home Mortgage, LLC 10 6.16% $10,391
BROKER SOLUTIONS, INC. 8 6.75% $13,757
Nations Lending Corporation 6 6.98% $10,345
Carrington Mortgage Services, LLC 5 5.58% $13,961
Ixonia Bank 5 7.03% $12,380
LOANDEPOT.COM, LLC 5 6.35% $10,955
Mortgage Research Center, LLC 5 6.88% $7,514
MUTUAL OF OMAHA MORTGAGE, INC. 5 6.83% $13,207
CARDINAL FINANCIAL 5 7.23% $20,470
CMG MORTGAGE, INC. 5 7.15% $15,064
Paramount Residential Mortgage Group, Inc. 4 6.37% $11,953
U.S. Bank 4 6.75% $8,799
PLANET HOME LENDING, LLC 4 6.19% $8,097
Old National Bank 4 6.06% $7,955
FIRST COLONY MORTGAGE CORPORATION 3 6.08% $8,127
Flagstar Bank, FSB 3 6.37% $8,569
MOVEMENT MORTGAGE, LLC 3 6.50% $10,501
GUARANTEED RATE, INC. 3 6.42% $12,836
University of Wisconsin Credit Union 3 5.79% $8,880
Bank of England 3 6.67% $11,243
ARK-LA-TEX FINANCIAL SERVICES, LLC. 3 6.21% $10,345
American Mortgage & Equity Consultants, Inc. 3 6.04% $17,374
Equity Prime Mortgage LLC 3 6.46% $12,825
Mr. Cooper ( Nationstar Mortgage ) 2 6.69% $10,239
AMERICAN PACIFIC MORTGAGE CORPORATION 2 6.94% $9,715
AMERISAVE MORTGAGE CORPORATION 2 5.69% $19,184
Bank Five Nine 2 6.19% $8,212
BMO Harris Bank 2 6.75% $8,677
Century Mortgage Company DBA Century Lending Company 2 7.13% $12,473
DAS Acquisition Company, LLC 2 6.81% $6,214
EAGLE HOME MORTGAGE, LLC 2 4.93% $12,239
EMM LOANS LLC 2 5.87% $17,874
ENDEAVOR CAPITAL, LLC. 2 6.50% $10,270
ENVOY MORTGAGE, LTD 2 7.13% $7,028
HOMEBRIDGE FINANCIAL SERVICES, INC. 2 6.69% $7,615
HOMESIDE FINANCIAL, LLC 2 6.50% $13,478
Plains Commerce Bank 2 5.88% $13,269
TOWNE MORTGAGE COMPANY 2 6.81% $11,050
OCMBC, INC. 1 5.63% $9,073
M&T Bank 1 6.75% $9,199
Alerus Financial 1 5.63% $7,091
Loan Simple, Inc. 1 6.13% $20,124
AMERICAN FINANCIAL NETWORK, INC. 1 6.25% $15,483
LAKEVIEW LOAN SERVICING, LLC 1 6.13% $14,248
PRIMELENDING, A PLAINSCAPITAL COMPANY 1 6.13% $15,583
PROPER RATE, LLC 1 7.13% $9,887
JPMorgan Chase Bank 1 7.75% $5,712
AXIA FINANCIAL, LLC 1 7.75% $11,353
Servion, Inc. 1 7.13% $7,509
SUN WEST MORTGAGE COMPANY, INC. 1 5.88% $19,545
The Huntington National Bank 1 6.25% $10,604
Ameris Bank 1 6.25% $6,718
TOP FLITE FINANCIAL, INC. 1 7.13% $22,675
ZILLOW HOME LOANS, LLC 1 5.75% $8,561
AmeriHome Mortgage Company, LLC 1 6.50% $5,017
AMERICAN FINANCING CORPORATION 1 5.25% $21,847
NBKC BANK 1 5.99% $9,258
NATIONS RELIABLE LENDING, LLC 1 7.50% $8,513

The top Madison FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 39 FHA loans originated. Their average total fees are $12,836, which is $1,052 higher than the next largest lender, THOMPSON KANE & COMPANY, LLC.

The lowest fee Madison FHA lenders (with over 10 loans originated) are NEWREZ LLC ($10,066), Prosperity Home Mortgage, LLC ($10,391), FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($10,487), PENNYMAC LOAN SERVICES, LLC ($11,509) and THOMPSON KANE & COMPANY, LLC ($11,784).

The lowest rate Madison FHA lenders (with over 10 loans originated) are PENNYMAC LOAN SERVICES, LLC (5.81%), UNITED WHOLESALE MORTGAGE, LLC (6.15%), Prosperity Home Mortgage, LLC (6.16%), QUICKEN LOANS, LLC (6.26%) and FREEDOM MORTGAGE CORPORATION (6.33%).

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
MADISON, WI COLUMBIA 2023 $472,030 $604,400 $730,525 $907,900
MADISON, WI DANE 2023 $472,030 $604,400 $730,525 $907,900
MADISON, WI GREEN 2023 $472,030 $604,400 $730,525 $907,900
MADISON, WI IOWA 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).