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🏛️ FHA Home Loans in Wisconsin (2026)
FHA loans are government-backed mortgages that can help buyers in Madison and Dane County get into a home with modest savings and average credit. The common headline number: 3.5% down with a 580+ credit score.
Quick Answer
In 2026, FHA loans in Wisconsin often allow 3.5% down with a 580+ credit score, with a $541,287 one-unit FHA loan limit statewide (multi-unit limits are higher for owner-occupied 2–4 unit homes).
Understanding FHA Loans
What FHA Loans Are (in plain English)
FHA loans are insured by the Federal Housing Administration. That insurance reduces lender risk, which is why FHA can be more flexible on down payment and credit compared to many conventional loans.
As Low as 3.5% Down
- $240,000 home = $8,400 down (3.5%)
- $300,000 home = $10,500 down (3.5%)
- Down payment can sometimes come from eligible gift funds
- Some buyers may qualify for down payment assistance (program rules vary)
Credit Score Options
- 580+ often aligns with 3.5% down
- 500–579 may require 10% down (and stronger compensating factors)
- Lender overlays can be stricter than FHA minimums
- Manual underwriting may be possible in some cases
Who Can Qualify for FHA Loans?
Common Borrower Requirements
- Credit score often 580+ for 3.5% down (or 500+ with more down)
- Stable income and employment history (commonly 2 years preferred)
- Debt-to-income ratio varies by lender and file strength
- Primary residence (owner-occupied)
- Move in shortly after closing (commonly within 60 days)
Common Property Requirements
- Must meet FHA property standards (health/safety/security)
- FHA appraisal is required
- Within FHA loan limits for the property type
- Condos must be FHA-approved (project approval rules apply)
Key Benefits of FHA Loans
Why Buyers Choose FHA
Often 3.5% with 580+
Eligible gifts may be allowed
Sellers may pay closing costs (limits apply)
More forgiving than many conventional loans
SFH, some condos/townhomes
Streamline refinancing may be available
Down Payment Examples
$240,000 purchase → 3.5% down = $8,400
$350,000 purchase → 3.5% down = $12,250
Note: Total cash-to-close also includes closing costs and prepaid items. Ask your lender for an exact estimate.
Mortgage Insurance (MIP) - What to Know
Upfront MIP: commonly 1.75% of the base loan amount (often financed into the loan)
Annual MIP: paid monthly; the exact rate depends on down payment, term, and loan amount
Important: rules vary based on the specific loan scenario. Your lender will confirm the current MIP factors for your file.
How to Get an FHA Loan (Simple Steps)
Check Credit & Budget
Know your range and plan for down payment + closing costs.
Get Pre-Approved
Work with an FHA-approved lender for a written pre-approval.
Shop for Homes
Tour homes that fit your needs and FHA eligibility.
Offer & Inspection
Use inspection to understand condition and plan negotiations.
FHA Appraisal
Confirms value and flags basic safety/condition items.
Underwriting & Closing
Clear conditions, finalize paperwork, and get the keys.
FHA Loan Limits in Wisconsin (2026)
Statewide 2026 FHA Limits (No County Callouts)
You said it best: the limit you provided is used statewide for Wisconsin. Here are the 2026 limits you provided:
| Property Type | 2026 FHA Loan Limit (Wisconsin) |
|---|---|
| One-Family (1-unit) | $541,287 |
| Two-Family (2-unit) | $693,050 |
| Three-Family (3-unit) | $837,700 |
| Four-Family (4-unit) | $1,041,125 |
Dane County Note (for local context)
If you're buying in the Madison area, it helps to compare your budget to local pricing and trends. Here’s your Dane County market report page: View Dane County Market Report.
Spoken FAQs (Voice Search Ready)
These are written to sound natural out loud (the way people actually ask questions).
What is an FHA loan in Wisconsin?
An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. It can be easier to qualify for than some conventional loans because it’s designed to help more buyers get into a home.
How much do I need down for an FHA loan in 2026?
If your credit score is 580 or higher, FHA often allows 3.5% down. If your score is between 500 and 579, lenders may require 10% down plus stronger compensating factors.
What credit score do I need for an FHA loan?
Many buyers target 580+ to qualify for 3.5% down. Some lenders may approve lower scores, but lender overlays vary and your full file matters.
What is the FHA loan limit in Wisconsin for 2026?
The 2026 FHA loan limit for a one-unit home in Wisconsin is $541,287. Limits are higher for 2–4 unit owner-occupied properties.
Does FHA require mortgage insurance?
Yes. FHA typically includes an upfront mortgage insurance premium and an annual premium paid monthly. The exact cost depends on your down payment, term, and loan amount.
Can I use FHA for a condo in Wisconsin?
Yes, but the condo project usually needs to be FHA-approved. Your lender can confirm if a specific condo association is eligible.
What does the FHA appraisal check?
It checks value and basic safety/condition issues. If something is a health or safety concern, repairs may be required before closing.
How long does it take to close an FHA loan?
It depends on the lender, appraisal timing, and how clean the file is, but many FHA loans close in a similar timeframe to conventional loans when documentation is ready.
Want help picking the best loan option?
FHA is one tool in the toolbox. If you’re not sure what fits best, we can help you compare FHA vs. VA vs. USDA vs. conventional based on your goals.
Contact us here or browse homes: Search listings.
Explore Other Loan Options
FHA is popular, but depending on your situation, another program could be a better fit.