For buyers with steady income and solid credit, a conventional loan is usually the most flexible and cost-effective way to finance a home in the Temecula Valley. It’s the most common loan type in the country for good reason.
Lower down payments than you’d think
You don’t need 20% down for a conventional loan. First-time buyers can put down as little as 3%, and repeat buyers as little as 5%. Putting 20% down has one advantage — you skip private mortgage insurance (PMI) — but plenty of buyers succeed with far less and simply request PMI removal later.
How PMI actually works
When you put down less than 20%, conventional loans add PMI to your payment. The good news: unlike FHA insurance, PMI is removable. You can request cancellation once you reach 20% equity, and it falls off automatically at 22%. For many Temecula buyers, PMI is a temporary cost, not a permanent one.
2026 loan limits in Riverside County
Conventional loans that stay within the conforming limit get the best pricing. For 2026, that limit is $832,750 in Riverside County and across the Inland Empire, and up to $1,249,125 in California’s high-cost counties. Above your county’s limit, you move into jumbo territory, which has its own guidelines.
Is conventional right for you?
Conventional loans reward strong credit with better rates and removable insurance. If your score is roughly 620 or higher and your finances are steady, this is often the loan to beat — but it’s always worth comparing against FHA if your credit or down payment is on the lighter side.
Want to see your conventional numbers? Call Tom Santos at (951) 312-6234 or start your application online. Tom Santos, NMLS #332212 · Arbor Financial Group. All loans subject to credit approval; rates and guidelines subject to change; not a commitment to lend.
