Trying to decide between FHA, VA, and conventional loans for a home in Madill? You are not alone. With local home prices and several zero or low down payment paths, your best choice depends on your credit, cash on hand, and eligibility. In this guide, you will compare costs, requirements, appraisals, and local programs so you can match the right loan to your goals. Let’s dive in.
Madill prices and loan limits
Typical Madill single-family home values sit around $160k to $170k, which keeps most purchases well within standard loan limits. You can see the latest index for Madill in the Zillow Home Value Index for context. Typical Madill home values
- FHA 2025 loan limit in Marshall County for a 1-unit home: $524,225. FHA Marshall County limit
- Conforming 2025 baseline limit: $806,500. Conforming loan limits
- VA buyers with full entitlement have no county loan cap for zero down. VA entitlement and loan limits
Local takeaway: at Madill price points, loan limits rarely stand in your way. Your choice comes down to eligibility, credit, and budget.
FHA vs VA vs conventional at a glance
- FHA: 3.5% down with common minimum credit scores around 580, upfront mortgage insurance premium (UFMIP) and annual mortgage insurance. Often best if your credit is more limited or savings are tight. FHA cost basics
- VA: For eligible veterans, active-duty service members, and some surviving spouses. Zero down is common, no monthly PMI, and a one-time funding fee unless exempt. VA entitlement and loan limits
- Conventional: As low as 3% down for qualified buyers. PMI applies under 20% down but can be canceled as you build equity. Often best for stronger credit and those targeting long-term cost control. Conforming loan limits
Who each loan fits best
FHA borrowers
You may prefer FHA if your credit score is on the lower side or you need only 3.5% down. Common lender thresholds include 580 for 3.5% down, with 500 to 579 sometimes possible at 10% down. Lenders can set their own overlays. FHA credit and standards
VA-eligible buyers
If you have VA eligibility, VA typically offers the lowest upfront cash need, no monthly PMI, and flexible underwriting. With full entitlement, there is no VA-imposed county cap for zero down, subject to lender approval and appraisal.
Conventional-ready buyers
If your credit is solid and you can put 20% down, you can avoid PMI and often secure lower long-run costs. If you prefer a smaller down payment, conventional programs around 3% to 5% down are available with PMI that can be removed later.
What you pay: upfront and monthly
FHA costs
- Down payment: 3.5% with common lender minimum scores around 580.
- Upfront MIP: typically 1.75% of the base loan amount; it can be financed. FHA cost basics
- Annual MIP: often about 0.50% to 0.60% of the loan amount per year depending on loan-to-value and term. FHA MIP usually lasts many years unless you refinance into a conventional loan once you have sufficient equity.
VA costs
- Down payment: often 0% with full entitlement.
- Funding fee: a one-time fee that varies by first or subsequent use and down payment size. Many first-time users at 0% down see about 2.15%. Exemptions apply for qualifying disabilities. The fee can be financed. VA entitlement and loan limits
- Monthly PMI: none.
Conventional costs
- Down payment: as low as 3% for some buyers; 5% is common.
- PMI: required under 20% down. Pricing varies by credit and down payment, often about 0.3% to 1.5% of the loan annually. PMI can be removed as you reach about 20% equity, which reduces your monthly cost. PMI cost ranges
Example numbers: a $160,000 Madill purchase
These simple figures show how upfront cash and financed fees can differ. Actual payments depend on your interest rate, taxes, insurance, and lender fees.
FHA at 3.5% down
- Down payment: $5,600
- Base loan: $154,400
- Upfront MIP at 1.75%: $2,702 (often financed)
- Total with financed UFMIP: about $157,102
- Annual MIP: often about 0.50% to 0.60% of the loan per year
VA with full entitlement, first use, 0% down
- Down payment: $0
- Base loan: $160,000
- Funding fee example at 2.15%: $3,440 (can be financed)
- Total with financed fee: about $163,440
- Monthly PMI: none
Conventional at 5% down
- Down payment: $8,000
- Base loan: $152,000
- PMI: applies until about 20% equity; cost varies by credit profile and down payment
Appraisals and repairs in Madill
FHA and VA appraisals include minimum property standards. That can lead to required repairs before closing. In a market with older homes, plan ahead for items like peeling paint, exposed wiring, roof leaks, and unsafe porches or steps. This preparation can prevent delays compared with conventional appraisals, which are typically less prescriptive. FHA property standards overview
Zero down and local programs
OHFA down payment assistance
Oklahoma Housing Finance Agency programs can help with down payment and closing costs on FHA, VA, USDA, and conventional loans if you meet income and purchase price limits. Work with an OHFA-approved lender to review eligibility. OHFA homebuyer assistance
USDA Rural Development
Many addresses in Marshall County, including areas around Madill, are commonly shown as eligible for USDA loans that offer 100% financing, subject to property and income limits. Confirm eligibility for the exact address with the official lookup or your lender. USDA eligibility overview for Marshall County
Property tax context
Marshall County’s effective property tax rates are commonly reported around 0.5% to 0.6%, which can help keep monthly housing costs manageable, though you should verify current millage with the county. Local offices are in Madill. Marshall County Assessor
How to choose your best loan
- Confirm eligibility. If you have VA entitlement, start there. If not, check USDA address eligibility and income limits, and review OHFA options.
- Assess credit and cash. If your score is limited or savings are tight, compare FHA and low-down conventional side by side.
- Compare total cost. Look at upfront fees, monthly PMI or MIP, and when insurance can drop off.
- Consider the property. For homes that may need repairs, discuss appraisal standards with your agent and lender early.
- Get quotes. Talk to at least two local lenders experienced with FHA, VA, conventional, and OHFA to see real numbers for your situation.
Buying in Madill should feel exciting, not overwhelming. If you want a clear plan tailored to your budget, property type, and timeline, reach out to Makenzie Mcelroy for local guidance from start to finish.
FAQs
Which loan usually needs the least cash at closing in Madill?
- VA and USDA can offer zero down for eligible buyers. FHA starts at 3.5% down, and conventional can be as low as 3% for qualified borrowers, with PMI under 20% down.
How do FHA and VA appraisals affect older homes in Madill?
- FHA and VA include minimum property standards that may require repairs before closing, which can extend timelines compared with conventional appraisals.
What credit score works for FHA vs conventional loans?
- Many lenders accept about 580 for FHA at 3.5% down. Conventional low-down programs typically need stronger credit, and the best pricing favors higher scores.
Does VA really have no loan limit for zero down?
- If you have full VA entitlement, the VA does not impose a county loan cap for zero down. With partial entitlement, county conforming limits factor into what you can borrow without a down payment.
Can I remove mortgage insurance later?
- Conventional PMI can be canceled after you reach about 20% equity, which lowers monthly costs. FHA’s annual MIP usually lasts many years unless you refinance into a conventional loan once you have enough equity.
