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Moreno Valley buyers favor conventional financing because it moves faster than government loans. Most homes here fall well within conforming limits, making conventional the cleanest path to closing.
Riverside County has strong competition from cash buyers and investors. A conventional pre-approval with 5-10% down puts you on equal footing with stronger offers.
Conventional Loans in Moreno Valley
You need 620 minimum credit for conventional approval, but 680+ gets better rates. Lenders want 43% debt-to-income or lower, though some allow 50% with strong credit.
First-time buyers can put down 3% if they meet income limits. Repeat buyers typically need 5% down for single-family homes. Investment properties require 15-25% down depending on units.
Local decision guide
Use this guide to connect conventional loans eligibility, lender expectations, and local market factors before comparing payment options in Moreno Valley.
Moreno Valley buyers favor conventional financing because it moves faster than government loans. Most homes here fall well within conforming limits, making conventional the cleanest path to closing.
Riverside County has strong competition from cash buyers and investors. A conventional pre-approval with 5-10% down puts you on equal footing with stronger offers.
You need 620 minimum credit for conventional approval, but 680+ gets better rates. Lenders want 43% debt-to-income or lower, though some allow 50% with strong credit.
SRK CAPITAL shops rates across 200+ wholesale lenders who offer conventional products. Bank of America and Wells Fargo quote retail rates that run 0.25-0.50% higher than wholesale pricing.
Credit unions like Altura and Provident serve Riverside County, but their underwriting overlays often add weeks to closing. Wholesale lenders approve faster with fewer surprises.
Moreno Valley buyers often assume FHA is their only option with lower credit. Wrong. Conventional at 5% down costs less monthly than FHA once you factor in mortgage insurance premiums.
If you're buying a second home or investment property here, conventional is your only realistic choice. FHA and VA don't allow investor loans, and portfolio lenders charge 2-3 points upfront.
FHA requires 3.5% down but charges higher insurance premiums for the loan's life. Conventional at 5% down costs $100-200 less per month on a $450k home, even with PMI.
Jumbo loans kick in above $832,750 in Riverside County. If you're close to that limit, conventional conforming offers better rates and easier approval than stepping into jumbo territory.
Moreno Valley has a mix of newer tracts and older homes from the 1980s building boom. Appraisers here are strict on deferred maintenance, so get a pre-inspection before you waive contingencies.
Many homes sit on larger lots in county pockets with well water or septic. Conventional lenders require well tests and septic inspections, adding 7-10 days to your timeline if the seller hasn't done them.
620 minimum, but 680+ qualifies for better rates and lower fees. Most lenders reserve their best pricing for 740+ scores.
Yes. You need 15% down for a single rental, 25% for 2-4 units. Rates run 0.50-0.75% higher than owner-occupied properties.
FHA requires only 3.5% down but charges higher insurance. Conventional at 5% down often costs less monthly despite the higher down payment.
Yes, if you put down less than 20%. PMI drops off automatically once you reach 78% loan-to-value through payments or appreciation.
Most deals close in 21-30 days with complete documentation. Wells and septic inspections can add a week if the property needs them.