We had two wells on our property - one produced 1 1/2 gallons per minute and the other 1/2 gallon per minute. It was barely enough for our family in the winter, but in the summer production dropped markedly. What saved us was a 1500 gallon storage tank so that our wells were always being emptied, and when it got too low we had a tank of water delivered and filled up our storage.
Well if you need a loan to buy a home, they typically want a minimum of 5 gallons a minute. I've never heard of anything that low before. If the well is pumping that low, you really need a well company to come out and see if they think the pump is malfunctioning or if the well is running dry.
At .25 gpm, the house better have a huge storage tank. That wouldn't give you enough water.