Your 2025 Guide to Conventional Mortgage Loans in Wisconsin
verything Milwaukee & Waukesha Buyers Should Know Before Applying
If you’re house hunting in Milwaukee, Waukesha, or anywhere in Southeast Wisconsin, understanding how conventional home loans work could save you time, money, and stress.
Conventional loans remain the most popular mortgage option - and for good reason. They’re flexible, competitive, and a great fit for qualified borrowers.
In this guide, we'll break down:
- ✅ Who qualifies for a conventional loan
- ✅ How it compares to FHA and VA options
- ✅ What buyers in Wisconsin should expect in 2025
✅ What Is a Conventional Mortgage?
A conventional mortgage is a home loan not backed by a government agency like the FHA or VA. Instead, it’s typically offered through private lenders and follows guidelines set by Fannie Mae and Freddie Mac.
These loans are ideal for borrowers with:
- Good to excellent credit
- Stable income and employment
- The ability to put at least 3% down (sometimes more)
You can use a conventional loan to buy a primary residence, second home, or investment property.
🔗 Learn more about Fannie Mae's Conventional Loan Standards
💸 Benefits of Conventional Loans
Conventional loans come with several advantages for the right borrower:
- Low interest rates - especially for buyers with strong credit
- Flexible down payment options - as low as 3% with Fannie Mae's HomeReady®
- No upfront mortgage insurance fee (unlike FHA loans)
- PMI (Private Mortgage Insurance) can be removed once equity hits 20%
These factors make conventional loans a smart long-term move for many Wisconsin homebuyers.
🔗 Compare with FHA vs. Conventional Loan Programs
🏠 How to Qualify for a Conventional Loan in Wisconsin
Here's what lenders (like us at Union Home Mortgage) typically look for:
- A credit score of 620+ (but better rates start around 740+)
- A debt-to-income ratio below 43%
- A steady income and job history
- Proof of assets for down payment and closing costs
In today's market, being prepared can give you the edge. That's why we offer pre-approvals within 24 hours - and help you understand exactly what you qualify for before you shop.
📍 Local Insight: What Milwaukee & Waukesha Buyers Should Know in 2025
Inventory is rising, and rates are expected to stabilize. That means buyers with strong credit in Southeast Wisconsin may benefit from locking in a conventional loan - especially while sellers are more flexible on price or concessions.
Not sure if you’re ready? Let's talk.
🔗 Check Wisconsin-specific resources via the Wisconsin Housing and Economic Development Authority (WHEDA)
✅ Ready to Explore Your Loan Options?
Whether you’re comparing loan types or just getting started, I'm here to simplify the process and help you buy with confidence.
📞 Schedule a no-pressure consult
👉 https://calendly.com/adam-zeman/30min
📩 Or email me directly: azeman@uhm.com
Let's find the loan that fits you - and get you home faster.