FHA Approved Lenders in Wisconsin
FHA loans are a good option for a variety of borrowers. This includes those who want to place a low down payment, as well as those that struggle with some credit issues. Some think of FHA loans as subprime mortgages, but they technically are not. However, they do serve borrowers that can not qualify for a prime mortgage or conventional loan.
If you are buying a home in Wisconsin, we will provide you with everything you need to know about Wisconsin FHA loans and how to qualify to purchase your dream home.
Best FHA lenders in Wisconsin
Below are our top picks for the best FHA lenders in Wisconsin. However, we suggest completing this short form so we can match you with the lender that is best suited for your scenario.
1.) Quicken Loans Contact
3.) Providence Home Lending Contact
5.) Easy Mortgage Company Contact
6.) Smart Financial Services Contact
7.) Madison Mortgage Guys Contact
2024 Wisconsin FHA Loan Requirements
You may view the primary FHA loan requirements for Wisconsin below. Each individual FHA approved lender may have some of their own loan requirements in addition to these.
Credit – Most Wisconsin FHA lenders will require that you have at least a 620 credit score. However, we work with lenders that will go down to a 500 credit score.
If your credit scores are under 580, the down payment will be 10%. You could search for down payment assistance to help with both the down payment and closing costs.
Down Payment – The standard down payment requirements for a FHA loan is 3.5% of the purchase price. So on a $200,000 loan, the down payment would need to be $7,000. If your credit score is below a 580, you may need to place as much as 10% down in order to qualify.
FHA Loan Limits – The FHA loan limits are the maximum loan amount available in a particular county. You can view the 2024 FHA loan limits for Wisconsin, on this page.
Employment – FHA loans require that you prove 2 years of consistent employment. You will need to provide at 2 years tax returns, and most lenders want to see your 2 most recent bank statements as well.
Property – The FHA has property requirements, which includes what are known as “minimum property standards”. The home you want to purchase must undergo an appraisal and meet these guidelines, which relate to the condition of the home. The appraisal must also verify the value of the property.
These are the standard requirements for a FHA loan. When you apply, if you are approved, you will be provided a checklist of requirements known as “loan conditions”, which will outline what you must provide in order for the loan to close.
Wisconsin FHA 203k Rehab Loan
In Wisconsin, you can purchase a home with just 3.5% down and also borrow the money needed to rehab or update the home. This program is called the FHA 203k rehab loan.
Here are the basic requirements for the 203k loan:
- 3.5% down payment
- Maximum debt to income ratio of 56.9%
- Minimum credit score of 500
- The home must be your primary residence
- No recent bankruptcies or foreclosures
In addition to the basic requirements above, the home must be your primary residence for at least the first year. You will have 6 months to get all of the rehab done and the lender may require you to use a contractor versus do the work yourself.
It would be helpful to hire an FHA 203k consultant to help with the process. The consultant will help to manage the contractors and the reimbursements from the bank for the rehab costs.
Wisconsin FHA Cash Out Refinance
There are many homeowners who want to access the equity in their home for rehab, investments, pay for college, etc. The FHA cash out refinance is available to anyone who have more than 20% equity in the home. This is because the maximum loan to value ratio for the FHA cash out refinance in Wisconsin is 80%.
Some FHA lenders have minimum credit score requirements for the cash out refinance. If you are having a difficult time finding a lender who is willing to provide you with an approval, then contact us here and we can help you.
Wisconsin FHA Streamline Refinance
If you currently have an FHA loan and you want to refinance without cashing out, then the FHA streamline refinance may be the best loan program for you.
In Wisconsin, you can get an FHA streamline refinance without providing income documentation and there is no need for an appraisal. The lender also will not rely on your credit scores to make a determination of eligibility. The scores may only be used to help determine your interest rate. The lender will also pull credit to be sure you have been making on time payments on your current FHA loan.
Frequently Asked Questions
What is the maximum FHA loan amount in Wisconsin?
There are maximum FHA loan limits set in each county in Wisconsin. Each year, HUD increases the amount to keep up with cost of living increases. To see what the maximum FHA loan amount is in your area of Wisconsin, follow this link to the FHA loan limits page.
Are FHA loans only for first time home buyers?
No, FHA loans are not restricted to first time home buyers. If you have owned a home before, you may still get a FHA loan. However, you may only have one FHA loan, and they are only available for primary residences.
Is down payment assistance available on FHA loans?
Yes, if you qualify for down payment assistance, it can be used with an FHA loan. There are many programs available that provide funds to use for down payment assistance. We can help you find out if you qualify for any of them.
How long after a bankruptcy can you get an FHA loan?
The FHA rules state that you must wait at least 2 years after filing a chapter 7 bankruptcy. For a chapter 13, you only need to wait until you have successfully made 12 months of payments. Additionally, you will need to provide the court trustee’s written approval. Also, keep in mind that the clock doesn’t start upon filing, but rather once the bankruptcy has been discharged.
How long after a foreclosure can you get an FHA loan?
The FHA rules state that you must wait at least 3 years before you are eligible for a FHA loan. However, there is an exception to this rule if there were “extenuating circumstances”, such as a job loss. You would also have to show some improvements to your credit since the foreclosure. In the event that the circumstances and credit improvements are satisfactory, you would only have to wait until after 1 year before you can apply for a FHA loan.
