Madison FHA Loan Rates, Closing Costs & Stats

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 61 lenders originated 380 FHA loans during 2023. The total origination value was $117,820,000, with an average FHA loan value of $310,053.

    Madison FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Madison averaged 6.38% for the week of 2024-07-19, compared to the national average (all FHA variants) of 6.59% for the same period.

    Madison's average FHA mortgage closing costs are $7,644.

    The average rate for the prior week (2024-07-12) was 6.63% and one month ago for the week of 2024-06-14, the average rate was 6.29%.

    The average rate one year ago was 6.37%.

    For refis of the same type during the week of 2024-07-19, the average rate was 3.9%.

    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
    THOMPSON KANE & COMPANY, LLC 44 6.92% $10,591
    QUICKEN LOANS, LLC 36 6.11% $12,506
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 33 6.81% $9,615
    GUILD MORTGAGE COMPANY 22 6.78% $11,716
    UNITED WHOLESALE MORTGAGE, LLC 21 6.12% $13,946
    Barrington Bank & Trust Company, N.A. 19 6.33% $14,082
    CORNERSTONE HOME LENDING, INC. 15 6.43% $13,456
    Nations Lending Corporation 11 6.98% $10,582
    Prosperity Home Mortgage, LLC 10 6.89% $10,014
    Bell Bank 10 6.63% $12,476
    LOANDEPOT.COM, LLC 7 6.19% $12,499
    NEWREZ LLC 7 6.59% $11,123
    FREEDOM MORTGAGE CORPORATION 7 6.82% $14,934
    ENDEAVOR CAPITAL, LLC. 7 6.66% $11,558
    CROSSCOUNTRY MORTGAGE, LLC 6 6.74% $11,596
    Mortgage Research Center, LLC 5 7.23% $8,684
    Paramount Residential Mortgage Group, Inc. 5 6.93% $10,119
    Flagstar Bank, FSB 5 7.11% $6,430
    PENNYMAC LOAN SERVICES, LLC 4 6.16% $8,534
    NATIONS RELIABLE LENDING, LLC 4 7.09% $8,991
    AMERICAN PACIFIC MORTGAGE CORPORATION 4 7.31% $8,751
    MUTUAL OF OMAHA MORTGAGE, INC. 4 6.88% $14,611
    Bank of England 4 6.59% $10,322
    MOVEMENT MORTGAGE, LLC 3 6.54% $9,481
    PLANET HOME LENDING, LLC 3 6.75% $8,084
    AMERISAVE MORTGAGE CORPORATION 3 6.33% $10,629
    UNION HOME MORTGAGE CORP. 3 7.17% $9,045
    University of Wisconsin Credit Union 3 6.63% $9,513
    CARDINAL FINANCIAL 3 6.42% $15,746
    HOMESIDE FINANCIAL, LLC 2 7.37% $11,548
    The Huntington National Bank 2 5.88% $13,244
    First Federal Bank 2 5.75% $13,729
    Starion Bank 2 6.50% $9,593
    PRIMARY RESIDENTIAL MORTGAGE, INC. 2 7.13% $10,196
    ZILLOW HOME LOANS, LLC 1 5.75% $9,012
    AmeriHome Mortgage Company, LLC 1 5.00% $18,769
    A + MORTGAGE SERVICES, INC. 1 6.75% $12,809
    Bank Five Nine 1 7.63% $8,872
    BAY EQUITY LLC 1 7.25% $13,922
    BROKER SOLUTIONS, INC. 1 6.75% $9,774
    Cambria Financial Group, LLC 1 7.12% $12,709
    CANOPY MORTGAGE, LLC 1 6.63% $14,260
    Carrington Mortgage Services, LLC 1 7.50% $12,179
    DAS Acquisition Company, LLC 1 7.75% $9,013
    EAGLE HOME MORTGAGE, LLC 1 4.99% $11,195
    ENVOY MORTGAGE, LTD 1 7.25% $19,229
    GENEVA FINANCIAL, LLC 1 5.63% $10,083
    Ixonia Bank 1 6.63% $5,926
    LAKEVIEW LOAN SERVICING, LLC 1 6.75% $10,910
    LAND HOME FINANCIAL SERVICES, INC. 1 6.75% $6,609
    Old National Bank 1 6.00% $8,708
    Plains Commerce Bank 1 7.13% $7,990
    ROYAL UNITED MORTGAGE LLC 1 6.00% $13,791
    SIRVA MORTGAGE, INC. 1 7.25% $7,538
    SUCCESS MORTGAGE PARTNERS, INC. 1 7.13% $15,655
    SUMMIT FUNDING, INC. 1 5.75% $25,746
    The Central Trust Bank 1 5.75% $14,037
    The Federal Savings Bank 1 6.75% $15,310
    U.S. Bank 1 6.99% $8,209
    WISCONSIN MORTGAGE CORPORATION 1 6.75% $10,172
    AMERICAN FINANCIAL RESOURCES, INC. 1 7.13% $8,676

    The top Madison FHA lender as defined by loan originations is THOMPSON KANE & COMPANY, LLC, with 44 FHA loans originated. Their average total fees are $10,591, which is $1,915 lower than the next largest lender, QUICKEN LOANS, LLC.

    The lowest fee Madison FHA lenders (with over 10 loans originated) are FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($9,615), Prosperity Home Mortgage, LLC ($10,014), Nations Lending Corporation ($10,582), THOMPSON KANE & COMPANY, LLC ($10,591) and GUILD MORTGAGE COMPANY ($11,716).

    The lowest rate Madison FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (6.11%), UNITED WHOLESALE MORTGAGE, LLC (6.12%), Barrington Bank & Trust Company, N.A. (6.33%), CORNERSTONE HOME LENDING, INC. (6.43%) and Bell Bank (6.63%).

    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).