Conventional Loans Explained: How They Work for Wisconsin Homebuyers
If you’re a first-time homebuyer in Wisconsin, you’ve probably come across the term "conventional loan" more than once. But what does it really mean - and is it the right fit for you? Let's break it down in simple terms so you can make a confident move toward homeownership.
✅ What Is a Conventional Loan?
A conventional loan is a type of mortgage that isn't insured or guaranteed by the federal government. Unlike FHA, VA, or USDA loans, conventional loans are backed by private lenders - and they often offer some serious advantages if you qualify.
🏡 Why Wisconsin Buyers Like Conventional Loans
Conventional loans are popular in Wisconsin for a few key reasons:
- Flexible down payment options - As low as 3% down for qualified buyers
- Fewer long-term fees - You can often remove PMI (Private Mortgage Insurance) once you build 20% equity
- Strong refinancing opportunities - Great for rate and term refinances when rates drop
- Broad property eligibility - Can be used for primary residences, second homes, or even investment properties
🎯 Who Qualifies for a Conventional Loan?
You may be eligible if you:
- Have a credit score of 620 or higher
- Can verify stable income
- Have manageable debt compared to your income
- Have 3% - 20% for a down payment (depending on the program)
You don't need perfect credit, but it helps to work with a loan officer who can guide you through pre-approval and match you with the best option.
💡 Want help figuring it out? Check out how I helped a local buyer secure a mortgage with just 3% down and a $2,000 grant:
👉 How I Helped a Wisconsin Buyer Get into a Home with 3% Down + $2,000 Grant »
📘 Grant Programs and Additional Support
Even if you’re eyeing a conventional loan, you might be able to pair it with down payment assistance or a grant.
Learn more about our local program designed to help buyers build their future:
👉 Build Your Future with the UHM Grant Program »
💬 Still Have Questions?
You can also explore mortgage and real estate options 24/7 with my AI-powered assistant. Get answers on loans, real estate in Wisconsin, even property listings - all in one place:
👉 Get Answers Instantly
📞 Ready to Get Pre-Approved?
Whether you're just exploring options or ready to make your move, I'm here to help. Let's talk about your goals and find the best loan for you - without the guesswork.
Adam Zeman
Mortgage Loan Officer, Union Home Mortgage
📍 Wauwatosa, Wisconsin
📞 Call/Text: 414-975-2654
🌐 www.mkemortgage.com
Want to book time to chat? Get on my calendar now and let’s find the right path to homeownership - on your terms.