Watertown FHA Loans

Watertown-Fort Atkinson, 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.

Watertown's 56 lenders originated 251 FHA loans during 2021. The total origination value was $50,065,000, with an average FHA loan value of $199,462.

Watertown FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Watertown averaged 5.21% 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 5.25% and one month ago for the week of 2022-07-01, the average rate was 5.64%.

The average rate one year ago was 3.04%.

For refis of the same type during the week of 2022-08-05, the average rate was 5.24%.

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

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
QUICKEN LOANS, LLC 30 2.68% $6,070
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 26 3.35% $8,666
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 21 3.33% $6,371
Mr. Cooper ( Nationstar Mortgage ) 12 3.39% $4,478
LAKEVIEW LOAN SERVICING, LLC 10 3.08% $3,859
LOANDEPOT.COM, LLC 8 3.20% $5,548
FREEDOM MORTGAGE CORPORATION 8 2.83% $4,149
INLANTA MORTGAGE, INC. 7 3.21% $6,711
PENNYMAC LOAN SERVICES, LLC 7 3.11% $4,536
GUILD MORTGAGE COMPANY 6 2.85% $9,273
CALIBER HOME LOANS, INC. 6 2.64% $5,427
WISCONSIN MORTGAGE CORPORATION 5 2.88% $5,317
Carrington Mortgage Services, LLC 4 3.09% $6,590
GUARANTEED RATE, INC. 4 2.78% $7,534
HOME POINT FINANCIAL CORPORATION 4 2.97% $5,921
ENVOY MORTGAGE, LTD 3 3.33% $7,356
NEWREZ LLC 3 3.21% $5,117
BROKER SOLUTIONS, INC. 3 3.33% $7,411
V.I.P. MORTGAGE, INC. 3 3.13% $7,492
PLANET HOME LENDING, LLC 2 2.75% $5,296
Barrington Bank & Trust Company, N.A. 2 3.25% $6,946
A + MORTGAGE SERVICES, INC. 2 2.69% $4,032
Paramount Residential Mortgage Group, Inc. 2 3.06% $7,856
Ixonia Bank 2 3.56% $10,013
GSF Mortgage Corporation 2 3.25% $6,685
Servion, Inc. 2 2.75% $7,718
THOMPSON KANE & COMPANY, LLC 2 3.56% $7,487
UNITED WHOLESALE MORTGAGE, LLC 2 2.51% $5,584
VILLAGE CAPITAL & INVESTMENT LLC 2 2.87% $1,474
AMERICAN PACIFIC MORTGAGE CORPORATION 2 3.13% $8,018
HOMESIDE FINANCIAL, LLC 1 3.63% $6,392
AMERICAN FINANCIAL NETWORK, INC. 1 2.75% $12,661
American Mortgage & Equity Consultants, Inc. 1 3.75% $7,247
Associated Bank 1 3.00% $4,944
Bank Five Nine 1 3.63% $7,034
Bank of England 1 3.13% $9,217
Bell Bank 1 3.13% $6,328
CHERRY CREEK MORTGAGE, LLC 1 4.25% $5,367
CORNERSTONE HOME LENDING, INC. 1 3.75% $5,457
CROSSCOUNTRY MORTGAGE, LLC 1 2.88% $8,726
DAS Acquisition Company, LLC 1 2.75% $6,253
DRAPER AND KRAMER MORTGAGE CORP. 1 3.38% $6,543
FINANCE OF AMERICA MORTGAGE LLC 1 2.88% $3,475
HOMEBRIDGE FINANCIAL SERVICES, INC. 1 2.25% $3,310
AMCAP MORTGAGE, LTD. 1 3.25% $5,226
JPMorgan Chase Bank 1 2.75% $8,319
LAND HOME FINANCIAL SERVICES, INC. 1 2.88% $6,151
LEADERONE FINANCIAL CORPORATION 1 3.13% $6,883
MID AMERICA MORTGAGE, INC. 1 2.75% $2,359
Mortgage Research Center, LLC 1 3.38% $6,649
MUTUAL OF OMAHA MORTGAGE, INC. 1 2.25% $6,680
NATIONS RELIABLE LENDING, LLC 1 2.75% $8,771
Neighborhood Loans, Inc. 1 3.25% $9,022
PNC Bank 1 3.00% $3,073
Prosperity Home Mortgage, LLC 1 3.00% $6,621
TOTAL MORTGAGE SERVICES, LLC 1 3.50% $6,745

The top Watertown FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 30 FHA loans originated. Their average total fees are $6,070, which is $2,596 lower than the next largest lender, CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP.

The lowest fee Watertown FHA lenders (with over 10 loans originated) are LAKEVIEW LOAN SERVICING, LLC ($3,859), Mr. Cooper ( Nationstar Mortgage ) ($4,478), QUICKEN LOANS, LLC ($6,070), FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($6,371) and CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP ($8,666).

The lowest rate Watertown FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (2.68%), LAKEVIEW LOAN SERVICING, LLC (3.08%), FAIRWAY INDEPENDENT MORTGAGE CORPORATION (3.33%), CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP (3.35%) and Mr. Cooper ( Nationstar Mortgage ) (3.39%).

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

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Watertown (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Price (YoY Change) Average Listing Price (YoY) MSA/US Median Price Ratio Active Listings
2018-01-01 $255,000 (8.5%) $317,325 (15.4%) 0.00 271
2018-02-01 $264,950 (12.8%) $331,822 (27.7%) 0.00 263
2018-03-01 $275,000 (19.6%) $350,885 (37.5%) 0.00 272
2018-04-01 $272,250 (11.1%) $343,672 (17.7%) 0.00 259
2018-05-01 $277,450 (12.1%) $370,517 (25.7%) 0.00 231
2018-06-01 $279,000 (11.6%) $362,146 (20.0%) 0.00 258
2018-07-01 $275,000 (7.8%) $349,632 (14.6%) 0.00 288
2018-08-01 $269,900 (4.8%) $342,737 (6.8%) 0.00 343
2018-09-01 $269,900 (2.9%) $332,950 (2.9%) 0.00 342
2018-10-01 $274,950 (5.8%) $339,884 (5.3%) 0.00 335
2018-11-01 $271,400 (8.6%) $331,641 (4.0%) 0.00 334
2018-12-01 $265,000 (3.9%) $319,764 (0.2%) 0.00 298
2019-01-01 $268,000 (5.1%) $329,171 (3.7%) 0.00 259
2019-02-01 $272,900 (3.0%) $341,071 (2.8%) 0.00 225
2019-03-01 $284,471 (3.4%) $354,106 (0.9%) 0.00 251
2019-04-01 $293,021 (7.6%) $364,918 (6.2%) 0.00 319
2019-05-01 $297,400 (7.2%) $376,879 (1.7%) 0.00 242
2019-06-01 $299,900 (7.5%) $391,960 (8.2%) 0.00 256
2019-07-01 $280,000 (1.8%) $376,125 (7.6%) 0.00 274
2019-08-01 $282,100 (4.5%) $375,630 (9.6%) 0.00 287
2019-09-01 $284,550 (5.4%) $373,889 (12.3%) 0.00 304
2019-10-01 $289,900 (5.4%) $376,698 (10.8%) 0.00 282
2019-11-01 $279,900 (3.1%) $359,639 (8.4%) 0.00 264
2019-12-01 $280,000 (5.7%) $357,140 (11.7%) 0.00 227
2020-01-01 $282,450 (5.4%) $364,719 (10.8%) 0.00 206
2020-02-01 $309,900 (13.6%) $373,495 (9.5%) 0.00 198
2020-03-01 $319,900 (12.5%) $386,925 (9.3%) 0.00 200
2020-04-01 $307,400 (4.9%) $369,184 (1.2%) 0.00 166
2020-05-01 $299,900 (0.8%) $357,319 (-5.2%) 0.00 159
2020-06-01 $314,450 (4.9%) $354,558 (-9.5%) 0.00 168
2020-07-01 $314,900 (12.5%) $372,220 (-1.0%) 0.00 173
2020-08-01 $310,000 (9.9%) $392,931 (4.6%) 0.00 172
2020-09-01 $282,500 (-0.7%) $384,692 (2.9%) 0.00 168
2020-10-01 $285,000 (-1.7%) $389,030 (3.3%) 0.00 152
2020-11-01 $307,400 (9.8%) $401,044 (11.5%) 0.00 144
2020-12-01 $289,900 (3.5%) $396,291 (11.0%) 0.00 119
2021-01-01 $314,900 (11.5%) $379,690 (4.1%) 0.00 82
2021-02-01 $327,400 (5.7%) $397,516 (6.4%) 0.00 66
2021-03-01 $335,000 (4.7%) $419,272 (8.4%) 0.00 68
2021-04-01 $349,900 (13.8%) $404,466 (9.6%) 0.00 76
2021-05-01 $350,000 (16.7%) $411,685 (15.2%) 0.00 86
2021-06-01 $349,950 (11.3%) $398,005 (12.3%) 0.00 99
2021-07-01 $341,900 (8.6%) $407,213 (9.4%) 0.00 120
2021-08-01 $312,200 (0.7%) $391,923 (-0.3%) 0.00 126
2021-09-01 $322,450 (14.1%) $396,087 (3.0%) 0.00 137
2021-10-01 $329,900 (15.8%) $417,479 (7.3%) 0.00 136
2021-11-01 $304,000 (-1.1%) $374,517 (-6.6%) 0.00 118
2021-12-01 $327,000 (12.8%) $391,313 (-1.3%) 0.00 98
2022-01-01 $379,500 (20.5%) $411,955 (8.5%) 0.00 86
2022-02-01 $387,400 (18.3%) $412,230 (3.7%) 0.00 71
2022-03-01 $389,900 (16.4%) $409,409 (-2.4%) 0.00 64
2022-04-01 $389,900 (11.4%) $413,230 (2.2%) 0.00 72
2022-05-01 $389,900 (11.4%) $428,711 (4.1%) 0.00 86
2022-06-01 $374,900 (7.1%) $452,955 (13.8%) 0.00 106
Watertown's median listing price for 2022-06-01 was $374,900, a difference of $24,950 (7.1%) versus the prior year and $-15,000 versus the prior month.

Watertown's median listing price comes in at 0% of the national average.

Watertown's average listing price for 2022-06-01 was $452,955, a difference of $54,950 (13.8%) versus the prior year and $24,244 versus the prior month.

For the 2022-06-01 period, Watertown had 106 MLS listings, a difference of 20 listings (23%) versus the prior month and 7 listings (7%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Watertown (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 0 days 1,804 sqft
2018-02-01 0 days 1,862 sqft
2018-03-01 0 days 1,992 sqft
2018-04-01 0 days 1,887 sqft
2018-05-01 0 days 1,992 sqft
2018-06-01 0 days 2,000 sqft
2018-07-01 0 days 1,907 sqft
2018-08-01 0 days 1,949 sqft
2018-09-01 0 days 1,832 sqft
2018-10-01 0 days 1,906 sqft
2018-11-01 0 days 1,916 sqft
2018-12-01 0 days 1,800 sqft
2019-01-01 0 days 1,802 sqft
2019-02-01 0 days 1,822 sqft
2019-03-01 0 days 1,974 sqft
2019-04-01 0 days 2,072 sqft
2019-05-01 0 days 2,052 sqft
2019-06-01 0 days 2,086 sqft
2019-07-01 0 days 2,054 sqft
2019-08-01 0 days 2,094 sqft
2019-09-01 0 days 2,149 sqft
2019-10-01 0 days 2,155 sqft
2019-11-01 0 days 2,000 sqft
2019-12-01 0 days 1,955 sqft
2020-01-01 0 days 1,957 sqft
2020-02-01 0 days 1,981 sqft
2020-03-01 0 days 1,981 sqft
2020-04-01 0 days 1,962 sqft
2020-05-01 0 days 1,943 sqft
2020-06-01 0 days 1,928 sqft
2020-07-01 0 days 1,948 sqft
2020-08-01 0 days 1,980 sqft
2020-09-01 0 days 1,945 sqft
2020-10-01 0 days 1,932 sqft
2020-11-01 0 days 2,081 sqft
2020-12-01 0 days 1,916 sqft
2021-01-01 0 days 1,900 sqft
2021-02-01 0 days 1,771 sqft
2021-03-01 0 days 1,902 sqft
2021-04-01 0 days 1,943 sqft
2021-05-01 0 days 1,996 sqft
2021-06-01 0 days 1,996 sqft
2021-07-01 0 days 1,996 sqft
2021-08-01 0 days 1,934 sqft
2021-09-01 0 days 1,978 sqft
2021-10-01 0 days 1,897 sqft
2021-11-01 0 days 1,931 sqft
2021-12-01 0 days 1,996 sqft
2022-01-01 0 days 1,996 sqft
2022-02-01 0 days 1,996 sqft
2022-03-01 0 days 1,977 sqft
2022-04-01 0 days 1,996 sqft
2022-05-01 0 days 1,982 sqft
2022-06-01 0 days 1,882 sqft
Watertown's median listing age (time on market) for 2022-06-01 was 0 days.

Watertown's median square footage for active listings during the 2022-06-01 period was 1,882 sqft. One year prior, the average listing was 1,996 sqft.

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).