Conventional Loans in Wisconsin: Everything You Need to Know in 2025
If you’re a Wisconsin homebuyer with solid credit and steady income, a conventional mortgage might be your best option in 2025. These loans offer flexible terms, competitive rates, and fewer restrictions than government-backed programs.
Let's break down how conventional loans work, who they're for, and why more buyers in Milwaukee, Waukesha, Dane County, and beyond are choosing them.
What Is a Conventional Mortgage?
A conventional loan is any mortgage not backed by the government. Instead, it follows guidelines set by Fannie Mae and Freddie Mac - the two major players in the secondary mortgage market.
Learn more about what a conventional mortgage is from NerdWallet.
These loans are ideal for:
- Buyers with good credit
- Steady, verifiable income
- At least 3% to 20% down
Benefits of Conventional Loans in 2025
- Low down payment options (as low as 3% for first-time buyers)
- No upfront mortgage insurance (unlike FHA)
- Private Mortgage Insurance (PMI) can be removed
- Loan limits up to $766,550 in most WI counties
- Competitive fixed or adjustable interest rates
Here's how the CFPB defines conventional mortgage loans.
Who Qualifies for a Conventional Loan in Wisconsin?
Here’s what you typically need:
- Credit Score: 620+ (but 740+ scores get the best rates)
- Down Payment: As low as 3%
- DTI Ratio: Ideally below 45% (can go higher with strong compensating factors)
- Income: Must be documented through W-2s, pay stubs, or tax returns
- Appraisal: Required for purchase or refinance unless waived by DU/LPA
Investopedia explains how conventional loans work and when they make sense.
Conventional vs FHA: Which Is Better?
| Feature | FHA Loan | Conventional Loan |
|---|---|---|
| Down Payment | 3.5% | 3 - 20% |
| Mortgage Insurance | Required for life of loan | Removable at 80% LTV |
| Credit Flexibility | More forgiving | Stricter, better rates with 700+ |
| Upfront Costs | Includes 1.75% MIP | No upfront PMI |
If you have strong credit and some savings, conventional may save you thousands over the life of the loan.
Related Blog:
How Much House Can I Afford in Wisconsin Right Now?
Loan Types You Can Use with Conventional Financing
- Fixed-Rate Mortgages (15, 20, 30 years)
- Adjustable-Rate Mortgages (ARMs)
- Refinance Loans
- Cash-Out Refinance
- Investment Property Loans
- Second Homes & Vacation Homes
Thinking About a Conventional Loan?
My team and I specialize in Fannie Mae/Freddie Mac underwriting and can show you if conventional financing will save you more vs FHA or other programs.
We only collect what's required by the AUS - making it one of the fastest, most efficient processes in the state.
✅ Apply for a conventional loan:
👉 Start your application now
📅 Book a quick call:
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💬 Ask my 24/7 mortgage assistant:
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