Conventional Home Loans in Madison, WI
The most versatile mortgage product available — conventional loans offer flexible down payment options, competitive rates, and automatic PMI cancellation. If you have solid credit and a stable income, a conventional loan may be your most cost-effective path to homeownership.
What Is a Conventional Loan?
A conventional loan is a mortgage not insured or guaranteed by a federal government agency. These loans conform to guidelines set by Fannie Mae and Freddie Mac, making them the most common mortgage type in America. They offer a wide range of terms (10–30 years), fixed or adjustable rates, and down payment options from 3% to 100%. They can be used for primary residences, second homes, and investment properties.
At MadCity Home Loans, Rob Miller helps borrowers across Wisconsin — from first-time buyers in Madison to move-up buyers in Middleton, Sun Prairie, and Verona — find the conventional loan that best fits their situation.
Conventional Loan Benefits
PMI Cancels Automatically
Unlike FHA MIP, conventional PMI disappears once you hit 20% equity — you're not locked into it for the life of the loan.
Investment & Second Homes
Finance rental properties, vacation homes, and second homes — programs FHA and VA don't permit.
Higher Loan Limits
Borrow up to $832,750 in most Wisconsin counties with standard conforming terms.
Flexible Terms
Choose from 10, 15, 20, or 30-year fixed terms, or adjustable-rate mortgages (ARMs) for lower initial payments.
Low Down Payment Options
First-time buyers can put as little as 3% down through HomeReady and Home Possible programs.
Faster Appraisal Process
Conventional appraisals are often faster and less stringent than FHA or VA appraisals, speeding up closing.
Conventional Loan Requirements in Wisconsin
- Minimum credit score of 620 (best rates start at 740+)
- Debt-to-income ratio of 45% or less (up to 50% with strong compensating factors)
- Down payment of 3%–20% depending on loan program and property type
- 2 years of steady employment history
- Loan amount within conforming limits ($832,750 in most WI counties for 2026)
- PMI required if down payment is less than 20% — cancels automatically at 80% LTV
Conventional vs. FHA? Rob Miller can run a full side-by-side comparison — total monthly cost, break-even point, and long-term savings — so you can make the most informed decision.
Get a Side-by-Side Comparison