Conventional Loan Requirements in Wisconsin (2025 Guide)

If you're buying a home in Wisconsin in 2025, there's a good chance you're considering a conventional mortgage. These loans remain the most popular option for buyers in Milwaukee, Waukesha, and across the state because they combine competitive interest rates, flexible terms, and the ability to cancel private mortgage insurance (PMI) once you hit enough equity.

But what exactly do you need to qualify? Let's break down the current conventional loan requirements in Wisconsin so you can see if this option is right for you.

Minimum Credit Score for Conventional Loans in Wisconsin

The baseline credit score requirement for a conventional mortgage is 620. However, your score plays a big role in the rate you're offered:

620 - 679: Eligible, but pricing adjustments can increase costs.
680 - 699: Better rates and fees.
700+: Strong borrower tier with competitive pricing.
740+: Best available rates and lowest risk tier.

Bottom line: The higher your score, the lower your monthly payment. Investopedia explains how credit tiers impact rates.

Down Payment Requirements

Conventional loans are known for flexibility with down payments:

3% down - available for certain first-time buyers.
5% down - common option for most buyers.
20% down - avoids PMI altogether.

If you put less than 20% down, you'll need PMI. The good news? Unlike FHA's lifetime mortgage insurance, PMI on conventional loans can be removed once you reach 80% loan-to-value (LTV) through payments or a new appraisal.

2025 Wisconsin Conventional Loan Limits

Each year, the Federal Housing Finance Agency (FHFA) sets new loan limits for conforming mortgages. For 2025, the standard conforming loan limit in Wisconsin is $806,500 for a single-family home.

That means homes priced above this threshold fall into jumbo loan territory, which comes with stricter requirements. Milwaukee, Waukesha, and Dane counties are all under the baseline $806,500 limit.

See the full FHFA conforming loan limit chart for 2025.

Conventional vs. FHA Loans in Wisconsin

Many buyers compare conventional loans vs. FHA loans. Here's what you should know:

FHA allows lower credit scores (580+), but comes with lifetime mortgage insurance.
Conventional loans require a stronger score (620+), but PMI can be removed, making them cheaper long term.

For buyers in Milwaukee and Waukesha, conventional often makes more sense if your credit is at least 680+ and you can put 5% or more down.

Key Takeaways for Wisconsin Homebuyers

Credit score: 620+ required, 700+ recommended.
Down payment: As low as 3%, 20% avoids PMI.
PMI: Drops off at 80% LTV.
Loan limits (2025): $806,500 statewide for 1-unit homes.
Best fit: Buyers with solid credit who want long-term savings over FHA.

Ready to Explore Your Options?

I specialize in helping Wisconsin buyers navigate the mortgage process quickly and with as little paperwork as possible. If you're considering a conventional loan, I'll help you compare options, explain PMI removal strategies, and guide you from pre-approval to closing.

Contact Adam Zeman - Wisconsin Mortgage Expert

Phone: 414-975-2654
Email: azeman@uhm.com
Website: www.mkemortgage.com
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