FHA loans
An FHA loan is a mortgage insured by the Federal Housing Administration, built for buyers with smaller savings or credit that is still rebuilding. In 2026 the one-unit limit is $541,287 in Milwaukee County and most of Wisconsin.
An FHA loan is made by a private lender like Fairway and insured by FHA, part of HUD, which lets lenders accept credit profiles and debt levels that conventional guidelines might not.
FHA insures one- to four-unit homes you'll live in as your principal residence. In my experience it fits best for buyers who:
For FHA case numbers assigned on or after January 1, 2026, the one-unit limit is $541,287 in 70 of Wisconsin's 72 counties, including Milwaukee, Waukesha, Ozaukee, Washington, Racine, Kenosha and Dane.
| Units | 2026 FHA limit (Milwaukee County and the Wisconsin floor) |
|---|---|
| 1 | $541,287 |
| 2 | $693,050 |
| 3 | $837,700 |
| 4 | $1,041,125 |
The two exceptions are Pierce and St. Croix counties, part of the Minneapolis-St. Paul metro, where HUD sets the one-unit limit at $552,000. Those multi-unit limits are why FHA is popular for buying a duplex in Wisconsin.
FHA charges two mortgage insurance premiums: an upfront premium, which can be financed into the loan, and an annual premium, which is divided into your monthly payment.
The catch is how long the annual premium lasts. With a smaller down payment it generally stays for the life of the loan; with a larger down payment it drops off after a set number of years. Most people remove it by refinancing into a conventional loan once they have enough equity. That's the key difference from conventional PMI, which you can cancel. My conventional vs. FHA breakdown shows when each one costs less, and the conventional loan page explains PMI removal.
Want a straight answer for your situation?
Yes, through FHA's 203(k) program, which rolls the purchase and the cost of repairs into one loan.
That's useful for Milwaukee-area housing stock: older bungalows, Polish flats and duplexes that need a new roof, updated electrical or a kitchen before they're livable. A 203(k) adds steps around the repair plan and the contractors doing the work, so expect a longer timeline than a standard purchase. My post on FHA 203(k) renovation loans in Wisconsin covers how the draw process works.
FHA usually isn't the right fit when your credit is strong enough that conventional mortgage insurance would cost less and come off sooner.
It also doesn't work for a second home or a rental you won't live in, and it can be a tough sell on a house with repair issues the seller won't fix before closing, unless we plan for a 203(k) from the start. If you've served in the military, compare it against my VA loan page first; if you're buying outside the metro core, check the USDA loan page too.
An FHA purchase looks like any other mortgage, with one extra focus: the appraiser also checks that the home meets HUD's minimum property standards for safety and soundness.
Peeling paint on an older home, a missing handrail or a broken window can become a required repair before closing, so I flag those early with your agent. Sellers can also contribute toward your costs; see how much a seller can pay toward closing costs. Appraisals often come back in as little as three to four business days, and my team can close in as few as 9 to 18 days. To compare FHA with every other option, start at the loan programs hub.
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