Conventional Loan Requirements in Wisconsin 2025 – Credit, Down Payment & Income Explained
Buying a home in Wisconsin in 2025? Chances are you'll be using a conventional loan - the most common mortgage type for buyers across the state. Conventional mortgages are flexible, competitive, and a great option for well-qualified borrowers. But what exactly do you need to qualify? Let's break it down.
Credit Score Requirements
Most lenders want to see a minimum credit score of 620 for conventional loans. That said, stronger credit (740+) often means better interest rates and lower monthly payments.
✅ 620 = baseline approval
✅ 680 - 720 = solid borrower profile
✅ 740+ = best rates & pricing
The good news? My team and I follow Fannie Mae and Freddie Mac automated underwriting findings closely. If the system approves your loan, we won't ask for extra documentation beyond what's required. That means no unnecessary hassle - just a smoother path to closing.
Down Payment Requirements
Conventional loans give you flexibility with your down payment:
- 3% down - available for qualified first-time buyers
- 5% down - common for repeat buyers
- 20% down - avoids private mortgage insurance (PMI)
Even if you can't put 20% down, PMI is often temporary. Once you build enough equity, you can request to have PMI removed - unlike FHA loans, which usually require mortgage insurance for the life of the loan. If you're weighing your options, check out my guide on refinancing in Wisconsin in 2025 for future planning.
Income & Debt-to-Income (DTI) Ratio
To qualify for a conventional mortgage, lenders evaluate your income against your debts.
- Most buyers need a DTI below 45%
- Strong borrowers may qualify up to 50% with AUS approval
One advantage we provide is up-front income underwriting. Instead of waiting until late in the process, my team reviews income early so you know exactly where you stand before house-hunting.
Property Types Eligible
Conventional loans cover more than just single-family homes:
- Primary residences
- Second homes (lake cabins, vacation properties)
- 1 - 4 unit investment properties
This makes conventional loans a versatile choice if you're building a portfolio or buying a second home in Wisconsin.
Why Work With My Team?
- ✅ Minimal documentation - we only collect what Fannie/Freddie require
- ✅ Fast approvals - we underwrite income early
- ✅ Competitive rates - strong credit means lower costs
- ✅ Experience - I've guided hundreds of Wisconsin families through conventional financing
Whether you're buying your first home in Milwaukee or moving up in Waukesha, conventional financing could be your smartest move.
Next Steps
If you're considering a conventional loan in 2025, now is the time to get pre-approved. That way, you'll know your budget and can make stronger offers in Wisconsin's competitive housing market.
📲 Schedule a call
💬 Chat with my 24/7 mortgage assistant
🖥️ Apply online
Let's Connect
Have questions about qualifying for a conventional loan in Wisconsin? I'm here to help.
📞 Call/Text: 414-976-2654
📧 Email: azeman@uhm.com
🌐 Website: www.mkemortgage.com
👤 Adam Zeman - NMLS #870441 | Union Home Mortgage