Watertown FHA Loan Rates, Closing Costs & Stats

Watertown-Fort Atkinson, 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.

    Watertown's 40 lenders originated 122 FHA loans during 2024. The total origination value was $33,780,000, with an average FHA loan value of $276,885.

    Watertown FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Watertown averaged 0.05% for the week of 2025-06-20, compared to the national average (all FHA variants) of 0% for the same period.

    Watertown's average FHA mortgage closing costs are $7,381.

    The average rate for the prior week (2025-06-13) was 7.03% and one month ago for the week of 2025-05-16, the average rate was 6.89%.

    The average rate one year ago was 6.94%.

    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.

    Watertown 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 Watertown level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    QUICKEN LOANS, LLC 13 6.15% $12,375
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 12 6.97% $9,040
    CARDINAL FINANCIAL 12 6.72% $12,591
    NEWREZ LLC 8 6.53% $8,346
    THOMPSON KANE & COMPANY, LLC 5 7.00% $10,865
    UNITED WHOLESALE MORTGAGE, LLC 4 5.78% $13,850
    FREEDOM MORTGAGE CORPORATION 4 6.50% $11,472
    FIRST COLONY MORTGAGE CORPORATION 4 6.81% $9,647
    AMERICAN FINANCIAL NETWORK, INC. 3 6.50% $18,423
    Barrington Bank & Trust Company, N.A. 3 6.58% $7,918
    GUILD MORTGAGE COMPANY 3 6.71% $11,251
    LOANDEPOT.COM, LLC 3 6.83% $10,196
    MOVEMENT MORTGAGE, LLC 3 6.96% $11,121
    PENNYMAC LOAN SERVICES, LLC 3 6.25% $7,097
    NEXERA HOLDING LLC 2 6.00% $10,537
    ZILLOW HOME LOANS, LLC 2 6.50% $10,274
    PLANET HOME LENDING, LLC 2 7.13% $7,070
    Prosperity Home Mortgage, LLC 2 6.69% $9,115
    Mr. Cooper ( Nationstar Mortgage ) 2 6.50% $10,200
    LAKEVIEW LOAN SERVICING, LLC 2 6.13% $10,129
    AmeriHome Mortgage Company, LLC 2 6.75% $6,368
    American Mortgage & Equity Consultants, Inc. 2 7.13% $12,596
    Century Mortgage Company DBA Century Lending Company 2 6.94% $9,298
    Bell Bank 2 5.69% $13,738
    CROSSCOUNTRY MORTGAGE, LLC 2 6.75% $9,071
    Carrington Mortgage Services, LLC 2 7.13% $15,317
    The Huntington National Bank 1 6.75% $6,260
    CMG MORTGAGE, INC. 1 7.75% $16,080
    ENDEAVOR CAPITAL, LLC. 1 6.88% $7,955
    BROKER SOLUTIONS, INC. 1 6.63% $5,632
    First Federal Bank 1 6.88% $6,880
    GUARANTEED RATE AFFINITY, LLC 1 6.15% $10,555
    GUARANTEED RATE, INC. 1 6.99% $6,874
    U.S. Bank 1 6.75% $7,304
    V.I.P. MORTGAGE, INC. 1 6.75% $13,200
    Loan Simple, Inc. 1 7.25% $11,235
    WISCONSIN MORTGAGE CORPORATION 1 6.25% $6,730
    NATIONS RELIABLE LENDING, LLC 1 6.63% $13,346
    Bank Five Nine 1 6.25% $8,857
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 6.13% $14,136

    The top Watertown FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 13 FHA loans originated. Their average total fees are $12,375, which is $3,335 higher than the next largest lender, FAIRWAY INDEPENDENT MORTGAGE CORPORATION.

    The lowest fee Watertown FHA lenders (with over 10 loans originated) are FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($9,040), QUICKEN LOANS, LLC ($12,375), CARDINAL FINANCIAL ($12,591), .

    The lowest rate Watertown FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (6.15%), CARDINAL FINANCIAL (6.72%), FAIRWAY INDEPENDENT MORTGAGE CORPORATION (6.97%), .

    Watertown FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    WATERTOWN-FORT ATKINSON, WI JEFFERSON 2022 $420,680 $538,650 $651,050 $809,150
    WATERTOWN-FORT ATKINSON, WI 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).