Wisconsin FHA Loans – Requirements and Loan Limits for 2025 – Wisconsin FHA Lenders
Wisconsin FHA loans require as little as 3.5% down (10% if credit score is below 580), accept credit scores as low as 500, allow a debt-to-income ratio up to 56%, and offer specialized options like 203(k) rehab and energy-efficient mortgages—while county-specific loan limits, such as the common $524,225 single-family limit, guide borrowing amounts
There are many FHA lenders in Wisconsin who offer FHA loans, but not all of them participate in all of the FHA loan options available.
We have been in business for over two decades helping thousands in the state of Wisconsin to purchase or refinance their homes (licensing info below). We will take you through the Wisconsin FHA loan requirements, detail what is needed to qualify, then help you to get pre-qualified. If you already know that an FHA loan is right for you, then help you to get pre-approved whether you live in Milwaukee, Madison, Green Bay, Kenosha, Racine, or anywhere else.
Contact us here to speak with a loan officer
Types of FHA Loans in Wisconsin
There are various types of FHA loans available in the state of Wisconsin for both purchases and also refinances. Each of these are for a specific situation that a home buyer or current homeowner may encounter. Although these programs are available, not every lender offers them and the ones who do may have their own unique requirements.
- Standard FHA Purchase Mortgage
- Standard Refinance
- FHA 203k Rehab (when buying or refinancing)
- FHA Streamline Refinance
- FHA One Time Close Construction Loan
- FHA Cash Out Refinance
- FHA Energy Efficient Mortgage
We will review some of these programs below and will provide additional information.
Key Features of FHA Loans in Wisconsin
| FHA Loan Feature | Wisconsin FHA Details |
| Minimum Credit Score | 500 (with 10% down), 580 (with 3.5% down) |
| Down Payment | 3.5% (580+), 10% (500–579) |
| Debt-to-Income (DTI) Ratio | Standard 43%, exceptions up to 56% |
| Loan Limits | Up to $524,225 for single-family homes |
| FHA Programs Available | 203(k), One-Time Close, Streamline Refi, Energy EEM |
Wisconsin FHA Down Payment Requirements
The down payment requirements for an FHA loan is the same in every state. The minimum requirement for an FHA loan is 3.5% of the purchase price. However, if your credit score is below 580, then the down payment requirement will be 10%. Per FHA guidelines, we are not permitted to deviate from this FHA down payment requirement.
If you do not have the down payment needed, you can also use gift funds from a relative.
Wisconsin FHA Down Payment Assistance
There are various down payment assistance programs in every state. Below is a list of just a few down payment assistance programs that may be available to you in Wisconsin. Home buyers will need to contact, and arrange for these programs independently. We will accept the funds from these programs for your down payment but they will not arrange for the down payment assistance.
Wisconsin Down Payment Grant Info
Wisconsin FHA Loan Requirements for 2025
These are the basic FHA loan requirements for this year. All of these must be met to be approved for an FHA loan. If you are not positive on whether you meet these standards or have questions, we can help.
- Down payment of 3.5% or 10% if your credit score is below 580
- 2-year employment history with some exceptions allowed
- Fully document your income for the past two years
- Minimum FICO score requirement of 500 – down payment will vary
- Mortgage Insurance Premium (MIP) is required for every FHA loan
- Maximum debt to income ratio of 43% with exceptions up to 56%
- The home must be your primary residence
- No bankruptcies or foreclosures in the past two years
We are able to get exceptions for some of these requirements. While we are unable to go below a 500 credit score, we can help if you do not have a 2 year work history, or have a recent bankruptcy. When we are granted an exception on your behalf, we are still falling within the HUD FHA guidelines.
Contact us to speak with a loan officer who can answer all of your questions.
Wisconsin FHA Loan Benefits
These are the benefits of an FHA loan versus a conventional loan:
- Lower credit scores permitted
- Lower down payment requirement
- FHA interest rates are lower than conventional rates
- Gift funds allowed
- Seller closing cost contributions are allowed
- FHA loans are assumable
- Co-signers allowed
- Higher debt to income ratios permitted
Wisconsin FHA Loan Limits
Every county in the United States has specific maximum loan limits that are set for single family homes, as well as 2-4 unit properties. The limits are set based upon the average home sales value in that county. The base FHA loan limit for single family residences in Wisconsin for most counties is $524,225.
There are higher loan limits available in what is considered to be high cost counties. In both Pierce and St Croix counties, the FHA loan limits are higher than the rest of the counties in Wisconsin which means if you qualify, you may borrow more to purchase or refinance your home.
Use this FHA loan limit lookup tool to see what the FHA loan limits are in your county.
Wisconsin FHA Loan Pre-Approval Process
If you are looking for an FHA loan, there is an optimal process you should follow to get pre-approved.
- The first step is to make sure you have the minimum down payment needed to qualify
- check your credit and try to cleanup anything that is pulling down your scores
- Get a copy of your tax returns for the past two years
- Get copies of your pay stubs for the past month
- Get copies of your last two months’ bank statements
- Speak to one of our loan officers about your loan scenario
Speak to us early in the process because they can identify opportunities to help with your FHA approval. This should be done months before you start looking for a home. Read more about how to get pre-approved for an FHA loan.
FHA 203k Loans in Wisconsin
FHA 203k loans are a great program which will allow you to borrow the money needed to purchase the home plus additional funds needed to rehabilitate or remodel the home. This program is also available in your state and we help you to get approved for this program whether you are purchasing a home, or would like to remodel a home that you already live in.
If you would like to fully understand how this program works, we suggest reading our article on FHA 203k loans.
FHA Streamline Refinance in Wisconsin
The FHA streamline refinance program is available to existing homeowners who would like to refinance for a lower rate while eliminating some of the refinance costs such as an appraisal. You may also get a discount on the mortgage insurance premium which is another advantage.
One of the main benefits of this program is that you do not have an income verification or an appraisal. You can refinance into a new FHA loan from an existing FHA loan if you do not have any late mortgage payments over the past 12 months.
For more information, please read our article on the FHA streamline refinance.
FHA One Time Close Construction Loan
The FHA construction loan is an amazing program which allows Wisconsin residents to purchase land and also build their dream home all with one easy mortgage.
The basic requirements to qualify for this mortgage are the same including the low down payment of 3.5%. The loan will cover all costs to build the home including architects, your builder, and cost of permits.
Home buyers must actively be involved in the process especially when it comes to finding a builder. Keep in mind that the builder will also need to be approved too. To learn more about this program, read our article on the FHA One Time Close Construction Loan.
What to Look for in an FHA Lender
You should take a few things into consideration when looking at which lender to work with. Some of these also may be, or should be very important to you as you continue shopping for an FHA loan.
A good FHA lender will:
- Allow for credit scores as low as 500
- Provide FHA 203k loans
- Offer competitive rates and fees
- Have a great processing and underwriting team
- Work closely with you throughout the loan process
- Communicate well and will provide you with updates along the way
We are able to help with everything referenced above. Click to speak with one of our loan officers.
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Suggested Wisconsin Home Buying Education
We believe that it is extremely important to fully understand the costs related to home ownership. Not just the the closing costs to the purchase of the home, but also what you will encounter as a first time home buyer post closing.
It is recommended for you to educate yourself on the following:
- Current status of your credit situation and how payment habits and credit card balances impact your credit scores.
- Evaluate your employment and income and determine whether you believe it to be stable. If you sense uncertainty in your future employment, it may not make sense to buy at this time.
- Get an idea of what your buying power could be either by using this home affordability calculator.
- Take a Wisconsin first time home buyer course to learn more about being a homeowner.
- Find out what it costs to transfer power and water into your name locally.
- Shop for homeowner’s insurance well in advance to help with your budgeting process. It is easier to find the lowest annual payment when you have time to do it.
- Put a budget together of what you may need inside of your new home from furniture to initial updates like painting and carpeting.
- Put a budget together of what you may need to maintain your home such as a lawn mower, basic tools, and more.
- Learn how to make basic home repairs yourself to save money. Suggest this youtube channel for all first time home buyer repair related videos.
Benefits of Living in Wisconsin
Wisconsin is a great place to live and raise a family. You will find down to earth people who love life and enjoy the outdoors. Here are just a few of the benefits of living in Wisconsin.
- Outdoor Activities – Wisconsin is a hunting and fishing paradise
- Food – If you love beer, cheese and bratwurst then this is the place for you
- Cost of Living – Homes in Wisconsin cost less than most states in the US. You can find a reasonably priced home here.
- Community – There are many community activities and people are generally friendly
If you have your mind made up and will be purchasing a home in Wisconsin, then let us help you with your mortgage.
Frequently Asked FHA Questions
Can I get an FHA loan with a bankruptcy?
In general, you will need to wait two years before applying for an FHA loan after a bankruptcy. However, there are some exceptions which may allow you to apply sooner. Read our article on the bankruptcy waiting period.
What are the FHA loan requirements in Wisconsin?
In Wisconsin, FHA loans require a minimum credit score of 580 with a 3.5% down payment, or 500 with 10% down, along with steady income, a manageable debt-to-income ratio, and the home being your primary residence
Can first-time homebuyers in Wisconsin qualify for FHA loans?
Yes. FHA loans are designed to help first-time buyers in Wisconsin with flexible credit requirements and low down payment options.
Are all FHA lenders the same?
Not all lenders who offer FHA loans are the same. They all do not offer all of the FHA programs and their rates and fees may also vary. Most importantly, the individuals who help to process and underwrite your loan will have a huge impact on your FHA loan experience.
Are there down payment assistance programs in Wisconsin for FHA loans?
Yes. Wisconsin offers state and local down payment assistance programs that can be combined with FHA loans to reduce upfront costs.
Can I use gift funds for an FHA loan?
FHA loans do allow for gift funds to cover your down payment as well as your closing costs. The gift funds must come from a relative or a close friend as approved by the lender. You will need to provide the lender with a gift letter that is signed by the donor.
Do I need an appraisal for an FHA loan?
The FHA does require an appraisal and inspection before your loan can be approved. The FHA inspection has clear guidelines on what needs to be repaired before your loan can close. They want to make sure home buyers are moving into a home that is safe and operational.
How do FHA appraisals work in Wisconsin?
An FHA-approved appraiser must inspect the property to ensure it meets HUD’s minimum property standards for safety, security, and livability.
Can I refinance an FHA loan in Wisconsin?
Yes. FHA offers streamlined refinancing options with less paperwork and no appraisal in some cases, making it easier to lower your rate or payment.
Do FHA loans in Wisconsin require mortgage insurance?
Yes. FHA loans require an upfront mortgage insurance premium (UFMIP) and annual mortgage insurance (MIP), which is added to your monthly payment.
What is the minimum down payment for an FHA loan in Wisconsin?
The minimum down payment is 3.5% if your credit score is 580 or higher. Borrowers with scores between 500–579 must put down at least 10%.
Can I use an FHA loan to buy a duplex in Wisconsin?
Yes. FHA loans allow you to purchase multifamily homes up to four units, as long as you live in one of the units as your primary residence.
Can I get an FHA loan for an investment property?
FHA loans are for primary residences only and if your goal is to purchase an investment property, you cannot use FHA insured financing for that purchase. However, if you are currently living in a home that is financed with an FHA loan, you can move to a new home and keep the current home as an investment.
How do I find FHA-approved lenders in Wisconsin?
You can work with banks, credit unions, or mortgage brokers that are FHA-approved. Comparing multiple lenders can help you find the best rate and terms.
Wisconsin Home Buying Statistics
If you are thinking about buying a home in Wisconsin, these home buying statistics may be interesting and relevant to you.
Population = 5,892,000
Number of Housing Units = 2,770,000
Percent of Housing Units that are Owner Occupied = 67.4%
Average Home Value = $245,400
Average Mortgage Payment = $1,691
Average commute time to work = 22.2 minutes
Top Wisconsin Cities by Population
Milwaukee – 563,305
Madison – 272,903
Green Bay – 106,095
Kenosha – 98,484
Racine – 67,462
*References (US Census – Wisconsin Demographics)
Licensing – Department of Financial Institutions, Mortgage Banker License #1330BA / Mortgage Broker License #1330BR
