Mortgage Insurance Is Growing — What That Means for CA Buyers

Private mortgage insurance volume is rising in 2026, and lending standards remain solid — here's what that means if you're buying a home in California with less than 20% down.

If you're buying a home in California with less than 20% down, you're likely familiar with private mortgage insurance (PMI). The good news? The PMI market is growing — and lending standards are holding steady.

In the first half of 2026, over $120 billion in conventional (GSE) purchase loans backed by private MI were securitized — up about 4.5% compared to the same period last year. At the same time, average credit scores for these loans sit comfortably around 753, and debt-to-income ratios have actually improved slightly. That tells me lenders are being responsible — this isn't a race to the bottom on standards.

On the FHA side, average credit scores ticked up slightly to 691.5, and DTI ratios dropped from 45.2% to 44.6%. FHA volume dipped a bit, but the borrower profile is getting healthier.

What does this mean for you as a California buyer? The low-down-payment purchase market is active and well-functioning. Whether you go conventional with PMI or FHA, lenders are approving solid borrowers at competitive terms.

Thinking about buying with less than 20% down? Let's talk about your options — conventional vs. FHA, PMI costs, and how to structure your loan for the best long-term outcome. Contact us today for a free consultation.