FHA Loans in Wisconsin: Requirements and Limits

Are you looking to buy a home in Wisconsin with a low down payment?

An FHA loan might be the answer for accessible homeownership in Wisconsin. At Society Mortgage, our FHA loan Wisconsin professionals specialize in making FHA loans reachable, whether you are interested in a cozy home in Madison or a family house in Milwaukee. Our team of experienced mortgage lending professionals has helped thousands of Wisconsin families achieve their dreams of homeownership through FHA mortgage payment.

What Are FHA Loans?

FHA loans are government-backed mortgages designed to help homebuyers, especially first-timers, achieve their real estate dreams.

An FHA mortgage loan is insured by the Federal Housing Administration, which allows us to offer more flexible qualifying credit requirements and lower large down payment compared to conventional loans or Jumbo loans. This federal insurance gives lenders like Society Mortgage the confidence to offer more favorable conditions and terms and greater benefits to borrowers who might not qualify for conventional mortgages.

FHA home loans have been helping first-time home buyer residents become homeowners since 1934, making it one of the most trusted and reliable mortgage loan paths to homeownership in Wisconsin. Society Mortgage is at the forefront of finding ways to help prospective homeowners buy their homes in the Badger State. 

FHA Loan Limits in Wisconsin

Because of their favorable interest rates, FHA loans come with certain limits and mortgage insurance requirements. Once you have understood how mortgage rates work, you will be able to see the options available, whether you qualify, and what are the pros and cons of such a mortgage.

For example, the Federal Housing Administration adjusts the loan limit annually to reflect changes in the housing loan programs. For 2024, most Wisconsin counties have a single-family home loan limit of $498,257. There are some provisions for more expensive areas: in higher-cost areas like Pierce County, the limit increases to $515,200 to account for high property values.

These limits are based on mortgage calculators on median home prices in each area and aim to make the program accessible to Wisconsin residents regardless of their location.

For multi-family properties, the limits increase substantially. This makes FHA loans a promising option for those interested in purchasing duplexes or other multi-unit properties. Keep in mind that these FHA guidelines don’t dictate the purchase price of the home — they only determine the maximum amount the FHA will insure. You can always purchase a more expensive FHA home loan if your line of credit allows a larger down payment to cover the difference.

FHA Loan Requirements in Wisconsin 

Getting approved for an FHA loan in Wisconsin is more accessible than many prospective homeowners realize.

Credit score Requirements

Credit scores are designed to support your current application: Borrowers with scores of 580 or higher can qualify for a minimum down payment of just 3.5%. Even if your credit score is less than perfect and falls between 500 and 579, homeownership may still be within reach with a 10% down payment.

At Society Mortgage, we are committed to providing access to your entire bank statement loan picture, considering factors beyond your credit score, such as annual mortgage insurance, upfront mortgage insurance, debt service coverage, service coverage ratio, cash out refinance, investment property loans etc, to find the best possible FHA streamline refinance solution for your situation.

Employment and income

Employment and income and cash flow stability are important to any loan, including an FHA loan approval.

At Society Mortgage, we look for a steady employment history of at least two years, though this doesn’t necessarily mean you need to have been at the same job. What matters to us is demonstrating that you have a reliable income source that can support your monthly mortgage payments.

Debt-to-income ratio

Your debt-to-income ratio is another important consideration. Most borrowers must keep their total monthly debt payments below 43% of their gross monthly income. Still, we understand that everyone’s financial situation is different, and will work toward finding the right option for you.

Down payment

The down payment requirements for FHA loans are more affordable than conventional mortgages.

With a qualifying credit score, you could secure your Wisconsin home with just 3.5% down. For many of our clients, this reduces the time needed to save for a home purchase. A first-time homebuyer often struggles to save a decent loan amount of down payment, so they find an FHA loan particularly helpful with this.

We also work closely with various down payment assistance programs available to Wisconsin residents and can accept gift funds from family members to help you pay stubs, cover your down payment and closing costs. Our team can help you through the documentation needed to record and verify these gift funds properly.

Property requirements

Property requirements under the FHA program are meant for your own safety.

The property must be your primary residence — not an investment property or vacation home.

FHA safety standards require a thorough inspection by an FHA-approved inspector to verify the home’s condition. This inspection protects your investment by spotting potential issues that need to be fixed before purchase.

The Society Mortgage FHA Advantage

If you feel that an FHA loan can support your journey toward homeownership, then you have come to the right place.

Our Wisconsin FHA specialists bring years of experience and local property market knowledge to every transaction. We know the whole Wisconsin property market, from the suburbs of Milwaukee to the rural communities of northern Wisconsin. Thanks to this local expertise, we can anticipate potential challenges and work on them proactively.

Our streamlined number of services sets us apart from other lenders in Wisconsin. We’ve invested in technology that makes document submission and tracking simple and secure while we still maintain the personal touch that complex financial transactions require. Our hybrid approach combines the convenience of digital tools with the irreplaceable value of face-to-face consultation. Whether you prefer to handle things electronically or sit down for an in-person discussion, we adapt to your preferences.

FHA Mortgage Lender in La Crosse, Wisconsin

The path to homeownership through an FHA loan doesn’t have to be complicated or overwhelming. At Society Mortgage, we’ve refined our process to make it as straightforward as possible. We are your mortgage lender in La Crosse, WI, is ready to guide you through every step of your bank statement loans, from initial application to closing day.

We understand that choosing a mortgage lender for your Wisconsin FHA loan is a significant decision. That’s why we offer free, no-obligation consultations to help you understand your options and determine if the FHA loan terms and conditions FHA are the right choice for your situation.

We communicate constantly with our customers, so you’ll never be left wondering about the status of your loan or what’s next in the process.

Contact Society Mortgage today to schedule your consultation with one of our FHA Loan Officers. Apply now so we can make your homeownership a reality! 

Frequently Asked Questions

Do you have to live in an FHA home?

Yes, to get an FHA loan, the potential home needs to be your primary residence for a specific length of time, during which you may not use it as a rental or vacation property. 

How can I get an FHA loan?

FHA loans are directed to those who meet some basic requirements, such as a steady income, a minimum credit score, and a down payment as low as 3.5%. From there, Society Mortgage will help you complete the application and navigate each step until you close on your new home.

FHA vs VA loans

FHA loans are geared toward first time homebuyers who require a small down payment (3.5%) and mortgage insurance. VA loans are elligible only for active-duty service members, and their families. They typically require no down payment or mortgage insurance and offer better terms.