How to Qualify for an FHA Loan in Wisconsin (2025 Guide)
If you’re thinking about buying a home in Wisconsin and worried about credit scores or down payments - you’re not alone. FHA loans make homeownership possible even when traditional lenders say no.
This guide breaks down how to qualify for an FHA loan in Wisconsin in 2025, step by step, so you can start planning with confidence.
What Is an FHA Loan?
An FHA loan is backed by the Federal Housing Administration and is designed to help buyers who may not qualify for conventional loans. It’s especially popular among first-time homebuyers, buyers with lower credit, and anyone who needs a low down payment option.
FHA Loan Qualification Checklist (Wisconsin 2025)
Here's what you'll need to qualify for an FHA loan in Wisconsin:
1. Minimum Credit Score
- 580 or higher = just 3.5% down
- 500 - 579 = 10% down required
- Scores under 500 typically don’t qualify
2. Steady Employment & Income
- Must show consistent income over the last 2 years
- Pay stubs, W-2s, or tax returns may be required (unless waived by AUS)
3. Reasonable Debt-to-Income Ratio (DTI)
- Ideally below 43 - 50%
- Some approvals go up to 56% with strong compensating factors
4. Down Payment Funds
- As little as 3.5% down
- Can be a gift from family or approved source
5. Primary Residence
- FHA loans are not for investment properties
- You must live in the home as your primary residence
FHA Appraisal & Property Requirements
The home must:
- Meet FHA safety and condition standards
- Pass an FHA-approved appraisal
- Be within county-specific loan limits
Can You Get Approved with a Bankruptcy or Foreclosure?
Yes - you can still qualify for an FHA loan even if you've had credit issues in the past.
- Chapter 7 Bankruptcy: Eligible after 2 years
- Chapter 13 Bankruptcy: Eligible with 12 months of on-time payments
- Foreclosure: Typically requires a 3-year waiting period
Related Blog:
How Much House Can I Afford in Wisconsin Right Now?
Why Work With Me?
✅ I follow Fannie Mae and Freddie Mac AUS findings to collect the least amount of documentation required
✅ I use upfront income underwriting to avoid surprises
✅ My team and I make the process fast, simple, and local
Ready to Get Pre-Approved?
Don't let outdated info or online rumors stop you from buying a home.
✅ Get started now:
👉 Apply here
📅 Book a call:
👉 Schedule a time with Adam
💬 Ask me anything, 24/7:
👉 Chat with your WI Mortgage Assistant