Conventional Loans in Wisconsin 2025 — What You Must Know Before You Buy
If you're looking into conventional loans in Wisconsin in 2025, you've got good reason - these loans can offer strong flexibility, fewer restrictions than government-backed products, and long-term cost savings if your credit and savings align.
1. What credit score and down payment do I need for a conventional loan in Wisconsin?
One of the first questions home-buyers ask: "Can I get a conventional loan with less than 20 % down or less than perfect credit?" The short answer: yes, but it depends on your full financial picture. According to NerdWallet, conventional loans typically require a credit score of at least 620.
- Some programs allow as little as 3 % down.
- The more you put down (e.g., 20 %), the more you'll avoid costs like private mortgage insurance (PMI).
If you'd like to explore these options further: Conventional Mortgages - The Go-To Home Loan for Wisconsin Buyers
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Conventional Loan Requirements - NerdWallet
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2. How does private mortgage insurance (PMI) work with a conventional loan, and when can I get rid of it?
If you put less than 20 % down, PMI is typically required. According to Fannie Mae: PMI is required for borrowers with less than 20 % down.
You can request removal of PMI once your loan balance drops to about 80 % of the value of your home - and many lenders must automatically terminate it around 78 %.
What to Know About Private Mortgage Insurance (PMI) - Fannie Mae
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For more background on loan types: FHA Loans in Wisconsin 2025 - Your Smart Path to Home Ownership
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In Wisconsin markets like Milwaukee/Waukesha where home-value growth may be moderate, reaching 20 % equity might take extra planning.
3. Is a conventional loan a better option than government-backed loans (like FHA) and what are the benefits in Wisconsin?
Many buyers ask: "Should I go conventional or an FHA loan? Which fits me best?"
With strong credit, steady income and savings, a conventional loan often offers lower long-term costs and more flexibility.
If your credit is limited or you have smaller down payment, a government-backed loan may make more sense.
In Wisconsin, qualifying for conventional may put you in a stronger position - if you've planned for down payment, PMI, and your stay-in-home timeline.
✅ What Should You Do Next?
- Check your credit score and how much down payment you have.
- Talk with a lender about qualifying criteria in your county (Milwaukee/Waukesha vs other WI counties).
- If you're putting less than 20 % down, estimate how much PMI you'll pay and when you can remove it.
- Compare your scenario: conventional vs other mortgage types.
- Reach out and plan your next step - don't wait.
Ready to get started?
Adam Zeman | Union Home Mortgage | NMLS #870441
Phone: 414-975-2654
Email: azeman@uhm.com
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