An FHA loan (Federal Housing Administration) provides government-insured loans that are ideal for homebuyers and homeowners with less-than-perfect credit. FHA loans are not restricted to first-time buyers. There are no income limits, but there are loan amount limits** that vary by county:
- $339,250 max loan for single-family homes in SE Wisconsin*
- $333,500 max loan for single-family homes in Madison/Dane County, Wisconsin
- $368,000 max loan for single-family homes in the Chicago area
- $382,950 max loan for single-family in the Minneapolis/St. Paul area
- Limits can vary by county and are higher for 2-unit, 3-unit and 4-unit homes.
- Click here to look up a specific county’s FHA loan limit
*In Kenosha, the limit is $368,000
**FHA loan limits for 2020 have not been announced.
FHA loans require a 3.5% down payment requirement, but the 3.5% down payment can be gifted to the homebuyer by a family member. Rates are slightly lower than conventional fixed rate loans but there is an upfront government insurance premium that is added to the loan balance and relatively expensive monthly insurance as well, as well.
Refinances – You can also use an FHA loan to take cash out up to 80% of the appraised value of your home. If you already have an FHA loan, you may be eligible for a streamlined refinance with no appraisal required.
Your licensed Accunet Loan Consultant can provide you with a side-by-side comparison of an FHA loan to other options. Click here to get started.