USDA Loans

William Severson

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What You Should Know

Buying a home in Wisconsin with no down payment is still a reality thanks to the Wisconsin USDA Mortgage. The Rural Development section of the United States Department of Agriculture (USDA) offers a home loan program designed to strengthen the rural housing market. It is a great way for borrowers to purchase a home with no money down.


The Wisconsin USDA mortgage does require Mortgage Insurance if a buyer finances more than 80% of the property’s value. In these instances, the private mortgage insurance rates are calculated based on the following criteria:

  • If the borrower is buying a home then 2% of the loan amount is charged as PMI
  • If the borrower is refinancing an existing mortgage, 2% of the loan amount is charged as PMI
  • Each loan that is subject to PMI must also pay 0.40% of the remaining balance as an annual PMI

The PMI on a Wisconsin USDA home loan can be paid upfront or added to the existing loan amount.


A conventional loan allows the seller to pay closing costs up to 3% of the purchase price. Similarly, FHA will allow the seller to pay closing costs up to 6% of the purchase price. However, USDA has no limit on the amount that can be paid by the seller. This means it is possible to find a house and purchase it without paying a down payment or any closing costs.


In order to be considered for the Wisconsin USDA loan a home must be located in an area designated as rural by the USDA. However, would it surprise you to learn that of the 72 counties listed in Wisconsin, 50 of those counties are considered rural? And the remaining 22 counties have sections that are considered rural. This means that there are numerous homes that could be eligible for this type of loan.


There are also some limits on the person’s income. The USDA bases the limits on the total number of people that will occupy a home. For example, a family made up of a mom, dad, and three children under the age of 18 will be allowed more income than just a married couple. William Severson will do all of the research for you and will look up the limits for each county to let you know if you meet the guidelines.


The maximum amount allowed for a Wisconsin USDA loan is different for each county in Wisconsin. However, the limits are very liberal. Some counties, such as Ozaukee and Dane, will allow qualifying borrowers to get a loan up to $230,000.


Some people are under the impression that the USDA loan is only for Wisconsin borrowers looking for their first home. However, nothing could be further from the truth. People buying their first home or their fifth home can use the USDA loan. The only stipulation is that the property must be the borrower’s primary residence.

It has been mentioned in the news a lot in the past three years that mortgage rates are at an all-time low. When rates are so low it is only a matter of time before they start to rise.

Take the opportunity to speak with William Severson and find out if you can purchase a home using the Wisconsin USDA mortgage. To learn more, call today at (608) 216-7058 or just use the fast and easy Online Application!