Madison FHA Loans

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 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).