FHA Loans in Madison, WI
Government-backed financing with as little as 3.5% down. FHA loans are one of the most flexible mortgage programs available — ideal for first-time buyers, those with lower credit scores, and anyone who wants a path to homeownership with less upfront cash.
What Is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration (FHA), a division of the U.S. Department of Housing and Urban Development (HUD). Because the federal government backs these loans, lenders like MadCity Home Loans can offer them with more flexible qualification standards than conventional mortgages — including lower credit score requirements and smaller down payments.
FHA loans have been helping American families achieve homeownership since 1934. In Wisconsin, they remain one of the most popular mortgage products for first-time buyers, move-up buyers, and anyone who has experienced credit challenges in the past.
At MadCity Home Loans, Rob Miller works with borrowers across the full credit spectrum to find FHA loan terms that fit their budget and long-term goals. Whether you're buying in Madison, Middleton, Sun Prairie, Janesville, or anywhere in Wisconsin, we can help you get pre-approved quickly.
FHA Loan Benefits
Low Down Payment
Just 3.5% down with a 580+ credit score. On a $300K home, that's only $10,500 upfront.
Flexible Credit Standards
Scores as low as 500 may qualify. We work with you to maximize your approval options.
Gift Funds Allowed
Your entire down payment can come from a gift from a family member — no personal savings required.
Streamline Refinance
Existing FHA borrowers can refinance with reduced documentation and no appraisal required.
Multi-Unit Properties
FHA allows 2-4 unit properties when you'll live in one unit as your primary residence.
Competitive Rates
FHA interest rates are typically lower than conventional rates for borrowers with similar credit.
FHA Loan Requirements in Wisconsin
To qualify for an FHA loan with MadCity Home Loans, you'll generally need to meet the following criteria:
- Minimum credit score of 580 (for 3.5% down) or 500 (for 10% down)
- Debt-to-income ratio typically no more than 43-57% depending on compensating factors
- Stable employment history — typically 2 years with the same employer or in the same field
- The property must be your primary residence (not a vacation home or investment property)
- Property must meet FHA appraisal and safety standards
- Loan amount must be within the FHA county loan limit ($541,287 in most WI counties for 2026)
Understanding FHA Mortgage Insurance
FHA loans require two forms of mortgage insurance:
Upfront MIP (UFMIP): 1.75% of your loan amount, paid at closing (or rolled into your loan). On a $300,000 loan, this equals $5,250.
Annual MIP: Ranges from 0.15% to 0.75% of your loan balance per year, paid monthly. For most Wisconsin buyers with a 30-year loan and less than 10% down, the annual MIP is 0.55% — about $137/month on a $300,000 loan.
For loans with 10% or more down, annual MIP cancels after 11 years. For loans with less than 10% down, MIP remains for the life of the loan — which is one reason many FHA borrowers refinance into a conventional loan once they've built 20% equity.
FHA vs. Conventional? Not sure which is right for you? Rob Miller can run both scenarios side by side and show you the real monthly payment difference.
Get a Side-by-Side Comparison