Conventional Loans in Wisconsin: 2025 Guide for Homebuyers
If you’re buying a home in Wisconsin and have decent credit, a conventional loan may be your best - and most affordable - option in 2025.
In this post, we'll cover what conventional loans are, who qualifies, and how they compare to FHA loans. Let's break it down.
What Is a Conventional Loan?
A conventional loan is a type of mortgage that's not insured by the federal government. Most conventional loans are "conforming," meaning they meet loan limits and guidelines set by Fannie Mae and Freddie Mac.
Conventional loans are offered by private lenders like banks, credit unions, and mortgage brokers (like us here at Union Home Mortgage).
Who Should Consider a Conventional Loan?
You may be a great fit for a conventional loan if:
- Your credit score is 680+
- You can put as little as 3% down (if eligible for HomeReady or Home Possible)
- You have stable income and a moderate debt-to-income ratio
- You want to avoid mortgage insurance long-term
2025 Conventional Loan Limits in Wisconsin
Loan limits have increased again in 2025:
- Standard limit: $766,550 (in most WI counties)
- High-cost areas: Up to $1,149,825 (if applicable)
Want to check the limit for your county? See current limits here
Key Benefits of Conventional Loans
- No upfront mortgage insurance premium (unlike FHA)
- Mortgage insurance can be removed once you reach 20% equity
- Lower long-term costs for strong borrowers
- Flexible terms (15, 20, 30-year fixed, ARMs available)
- Often lower rates with stronger financial profiles
FHA vs Conventional: Which Is Better?
Here's a quick comparison:
| Feature | FHA Loan | Conventional Loan |
|---|---|---|
| Min. Credit Score | 580 | 620 - 680+ |
| Down Payment | 3.5% | 3% - 20% |
| Mortgage Insurance | Required | May be removed |
| Upfront MIP | Yes | None |
| Best For | First-time or lower credit buyers | Stronger credit/income buyers |
Want a deeper breakdown? Read our FHA vs Conventional Loan Comparison
How to Get Started
- Get Pre-Approved
Schedule a call with Adam Zeman - Submit Docs Easily
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You’ll have a strong pre-approval letter in hand for offers.
Have Questions? Use Our AI Mortgage Assistant
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Contact Adam Zeman
Call or Text: (414) 975-2654
Email: azeman@uhm.com
Schedule a Mortgage Strategy Call: https://calendly.com/adam-zeman/30min