Wisconsin Mortgage Overview
Wisconsin has a population of 5.8 million
people and an average home price of $180,000. It's an affordable area to live
in and is a great place for first-time homebuyers to find their first home.
If you're thinking of living in WI, here
are your top loan options.
Wisconsin conventional loans
When you think of
a mortgage, you likely think of the conventional loan with a 20 percent down
payment. Today, 20 percent isn't necessary. You can get a loan with 3 percent
down for first-time buyers and 5 percent if you've owned a home before. You
need a 660 credit score and a 36 percent debt to income ratio to qualify. Borrowers
pay PMI for down payments lower than 20 percent down, but you can cancel it
once you owe less than 80 percent of the home's value.
Wisconsin FHA loans
FHA loans are for
borrowers with less than perfect credit. FHA loans require just a 3.5 percent
down payment if you have a 580 credit score. You can also get a loan with a 500
- 579 credit score but with a 10 percent down payment. Mortgage insurance lasts
for the loan's entire term.
Wisconsin VA loans
VA loans are for those who
served our country. VA loans provide 100 percent financing. but you only need a
620 credit score. VA loans have flexible underwriting guidelines making it easy
for veterans to secure a home. VA loans don't charge mortgage insurance, but
you will pay an upfront fee.
Wisconsin USDA loans
USDA loans are for low to
moderate-income borrowers in a rural area. If you can't get any other loan, you
may be eligible. USDA loans require a 640 credit score. Borrowers may also have
a max 41 percent debt ratio. You must live within the USDA boundaries, but you
may be surprised to see how many areas are rural.
Programs in Wisconsin
WHEDA Advantage Conventional
With a 620
credit score or higher, and proof you'll live in the home, you may get a low
interest 30-year fixed loan. You can use down payment assistance, there's no
requirement to use your own funds.
WHEDA Advantage FHA
With a 640 credit score or
higher, and a minimum 3.5 percent of your own funds, you may get the WHEDA
Advantage FHA which is a low interest rate 30-year fixed loan. If you qualify
for down payment assistance, it may satisfy your 3.5 percent funds requirement.
WHEDA Easy Close DPA
You may receive up to 6
percent of the sales price in down payment assistance when you take out a WHEDA
first mortgage loan too. The loan is a 10-year fixed rate loan with the same
interest rate as the first mortgage.
WHEDA Capital Access DPA
You may receive the
greater of 3% of the sales price or $3,050. This 30-year fixed rate mortgage
has 0% and has no required monthly payments.