Wisconsin FHA Mortgage Home Loans
What is the FHA mortgage loan about?
The Wisconsin FHA mortgage loans are government-backed loans to help you purchase or refinance your Wisconsin home. This loan program has been helping most people become homeowners since 1934. More so, the Federal Housing Administration (FHA), which is part of HUD, fully insures the Wisconsin FHA mortgage.
What does FHA loans offer?
FHA loans allow people who have had past credit issue the opportunity to purchase or refinance their Wisconsin home. Underwriting guidelines for FHA mortgage loans are not as restricted as conventional mortgage guidelines. This allows FHA the flexibility to lend to individuals with lower credit scores and for those individuals with less money to put down.
Underwriting guidelines for Wisconsin FHA home loans
Some of the underwriting guidelines for your Wisconsin FHA mortgage are:
- 3.5% down payment and can be gifted from a relative
- 97.75% LTV on R/T refinance
- 85% LTV on cashout refinance
- Closing costs can be paid by the seller
- No bankruptcy discharged in the last 2 years
- No foreclosure or short sale in the last 3 years
- Collections do not have to be paid off.
Effective with FHA Case Numbers assigned on or after January 1, 2018, new FHA loan limits have increased to $294,515.
Documents needed for an FHA home loan
Every loan is unique, but here are some of the most common items needed
- Paystubs last 30 days
- W2's last 2 years
- Taxes last 2 years
- Bank Statement last 2 months
- Divorce Decree, Marital Seperation Agreement, & Child Support order
- Bankruptcy papers including discharge letter