The Basics

Why Madison buyers choose FHA

FHA loans are backed by the Federal Housing Administration, which lets lenders say yes to buyers who might not qualify for conventional financing yet. If your credit is still building or your savings are thin, FHA is often the most realistic path into a home in Madison, Sun Prairie, or the surrounding Dane County communities.

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3.5% down

Buy with just 3.5% down at a 580 credit score, from savings or eligible gift funds.

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Flexible credit

More forgiving credit and debt-to-income guidelines than conventional.

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Assumable

FHA loans can be assumable, which can be a selling point down the road.

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First-timer friendly

A go-to for first-time buyers, though open to repeat buyers too.

The 2026 Numbers

What FHA looks like on a Dane County home

The Dane County median sale price was $495,000 in June 2026 (SCWMLS). Here is the minimum down payment by loan type on that home, so you can see where FHA sits next to the other options.

Minimum down payment on a $495,000 Dane County home

FHA asks a bit more down than conventional, but qualifies more buyers.

$0 VA / USDA $14,850 Conventional $17,325 FHA

Example based on the June 2026 Dane County median of $495,000 (SCWMLS). VA and USDA have their own eligibility rules.

The 2026 FHA limit in Dane County is $541,287 for a one-unit home. Most Madison-area homes at or near the local median fall well inside it.

Who Qualifies

Credit and down payment tiers

FHA meets you where your credit is. The down payment you need depends on your score.

If your credit score is 580 or higher

  • ✓Down payment as low as 3.5%
  • ✓Widely available through local lenders
  • ✓Gift funds allowed for the down payment
  • ✓Flexible on debt-to-income within program limits

If your credit score is 500 to 579

  • ✓Down payment of 10% is generally required
  • ✓Still an option when conventional is out of reach
  • ✓A good stepping stone while you build credit
  • ✓John can connect you with lenders who specialize in it
How FHA Insurance Works

Plan for mortgage insurance

This is the one place FHA and conventional differ the most, and it is worth understanding before you choose.

FHA mortgage insurance

  • ✓An upfront premium is added to your loan at closing
  • ✓An annual premium is paid monthly as part of your payment
  • ✓With less than 10% down it generally stays for the life of the loan
  • ✓Many buyers refinance to conventional later to remove it

Why it still works

  • ✓The low 3.5% down gets you buying years sooner
  • ✓You build equity while Dane County values rise
  • ✓Refinancing to conventional later can drop the insurance
  • ✓John helps you map the plan from FHA today to conventional later
Homes Are Moving Fast

Dane County homes sell in a
median of 8 days. Get ready with FHA.

A real FHA pre-approval before you shop makes your offer credible in a market with about 2.1 months of supply. That is often the difference between winning the home and missing it.

8-day median on market
3.5% down with 580+ credit
$541,287 Dane County FHA limit
Call or text 608-669-4226 Search Dane County homes
FHA vs Conventional

Which one fits you?

There is no universal winner. FHA is usually the better fit for credit in the 580 to 640 range or a higher debt-to-income. Conventional tends to win once your credit is strong because its PMI cancels and there is no upfront insurance. Comparing them side by side before you write an offer is exactly the kind of thing to sort out early.

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Lean FHA if

Your credit is still building, your savings are limited, or your debt-to-income is tight.

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Lean conventional if

Your credit is strong and you want mortgage insurance that eventually disappears.

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Not sure?

John and a trusted local lender run both side by side so you see the real monthly difference.

The Process

From pre-approval to keys

1

Check your credit and budget

Know your score and a comfortable payment. FHA is forgiving, but a stronger file still earns a better rate.

2

Get pre-approved

A real FHA pre-approval sets your price range and makes your offer credible in a fast market.

3

Find the right home

Tour homes across Madison, Sun Prairie, Middleton, Verona, Waunakee, and DeForest.

4

Write a competitive offer

With inventory tight, offer strategy matters. John structures yours to win without overpaying.

5

Appraisal and underwriting

FHA has its own appraisal and property standards. John helps you choose homes that will pass cleanly.

6

Close and move in

Sign, fund, and get your keys, then plan ahead for a possible refinance to conventional later.

Your Local Realtor

How John helps you use it

Local, hands-on, and lender-agnostic

John Reuter has helped hundreds of Dane County families buy, including many first-time buyers using FHA. He is not tied to any single lender, so he can point you to the ones who price FHA well and close on time, then help you weigh FHA today against a plan to refinance into conventional once you have equity. When you find the home, he builds an offer that wins in a low-inventory market across Madison, Sun Prairie, Waunakee, DeForest, Verona, and Middleton. New to buying? Start with the First-Time Homebuyer Guide.

More Options

Explore other loan programs

Conventional

Conventional Loans

As little as 3% down for buyers with solid credit.

VA

VA Loans

$0 down and no PMI for eligible veterans and spouses.

USDA

USDA Loans

$0 down for eligible rural and suburban areas near Madison.

WHEDA

WHEDA

Wisconsin first-time buyer loans plus down payment help.

DPP Grant

Downpayment Plus

Up to $10,000 forgivable toward down payment and costs.

Compare

All Programs

See every buyer loan program side by side.

Questions

Frequently asked questions

What credit score do I need for an FHA loan in Wisconsin?
You can qualify with 3.5% down at a credit score of 580 or higher. Scores from 500 to 579 may still qualify with 10% down. Stronger credit helps your rate, and John can point you to Dane County lenders who work well with FHA.
What is the 2026 FHA loan limit in Dane County?
For 2026 the FHA loan limit for a one-unit home in Dane County is $541,287. That covers a large share of Madison-area homes, including many at or below the local median.
How much is the down payment on an FHA loan?
The minimum is 3.5% for buyers with a 580 or higher credit score. On the $495,000 Dane County median home, 3.5% is about $17,325.
Does FHA mortgage insurance ever go away?
FHA charges an upfront premium plus an annual mortgage insurance premium. With less than 10% down it generally stays for the life of the loan, so many buyers later refinance into a conventional loan to drop it once they have equity. That trade-off is worth planning for up front.
Is FHA or conventional better in Madison?
FHA is often the better door in for lower credit scores or tighter debt-to-income. Conventional usually wins on long-term cost once your credit is strong because its PMI cancels. John and a local lender compare both for your numbers.
Can I use an FHA loan as a first-time buyer?
Yes. FHA is one of the most popular first-time buyer loans because of the low 3.5% down payment and flexible credit. It is not limited to first-time buyers, but it fits them well.
Ready When You Are

Let's get you
into an FHA loan

Whether your credit is strong or still building, the first step is the same: a quick conversation about your budget and a real pre-approval. Then we go win you a home.

Call or text 608-669-4226Search homes for saleCompare all loans