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Why Buying a Home is the Best Investment

Welcome to The Chris Kennedy Team Mortgage Blog

Honest, local, easy-to-understand mortgage guidance for buyers and homeowners across Sacramento, Placer, El Dorado, and Yolo Counties.

Hi — I'm Chris Kennedy. For years, I've helped first-time buyers, veterans, families upsizing into their forever homes, and seasoned investors navigate one of the biggest financial decisions of their lives: getting a mortgage in the greater Sacramento area.

This blog exists for one simple reason. Most mortgage advice online is generic, confusing, or written by people who've never closed a loan in Sacramento, Roseville, Folsom, El Dorado Hills, or Davis. I wanted to change that.

Every post on this site is written for you — the buyer, homeowner, or veteran trying to make sense of mortgages in a real Northern California market. Real numbers. Real neighborhoods. Real programs that actually work here.

What you'll find on this blog

Whether you're brand new to homebuying or you've owned for decades, you'll find practical, local guidance on every part of the mortgage process. The articles below cover:

For first-time buyers — How to qualify, how much you really need to put down, how to use CalHFA assistance, and how to stop waiting and start owning.

For veterans, active-duty service members, and surviving spouses — Everything you need to know about putting your VA home loan benefit to work in Sacramento, Roseville, Folsom, and beyond. Zero down. No PMI. The benefit you earned.

For move-up buyers and luxury buyers — Jumbo loan strategies for higher-priced markets like El Dorado Hills, Granite Bay, Serrano, and Bass Lake — including how to qualify, what reserves you'll need, and how to compete in luxury bidding wars.

For investors and wealth-builders — How to use FHA multi-family loans (yes, with just 3.5% down) to "house hack" your first investment property, plus the long-term wealth-building strategy that real estate quietly delivers better than almost any other investment.

For buyers in rural and semi-rural areas — A breakdown of USDA loans across Placer, El Dorado, and Yolo counties, where surprisingly large portions of the region qualify for $0-down financing.

For credit-building buyers — How FHA loans help buyers with imperfect credit get into Sacramento-area homes, plus practical credit improvement strategies that actually move the needle.

Why this blog is different

Three things set this content apart:

It's local. Every article names real neighborhoods, real Sacramento-area home prices, and real programs available in Sacramento, Placer, El Dorado, and Yolo counties — not vague national advice.

It's honest. I tell you what works, what doesn't, what the catches are, and when a loan isn't right for you. No high-pressure pitches. No fine print buried at the bottom.

It's actionable. Every post is built so that by the end, you know what to do next — whether that's running numbers, checking eligibility, or starting a conversation.

A little about me

I've spent my career helping Sacramento-area families navigate mortgages — through every kind of market, every kind of loan, and every kind of buyer situation. I've helped:

First-time buyers close with $0–$5,000 out of pocket using FHA + CalHFA strategies
Veterans buy in Sacramento, Roseville, Folsom, and El Dorado Hills with zero down
Move-up families step into luxury markets using jumbo financing
Investors build long-term wealth through smart house-hacking and refinance strategies
Self-employed borrowers other lenders turned away find creative solutions

My team and I serve the entire greater Sacramento region, including:

Sacramento County — Sacramento, Elk Grove, Folsom, Citrus Heights, Rancho Cordova, Antelope, Natomas
Placer County — Roseville, Rocklin, Lincoln, Auburn, Loomis, Granite Bay
El Dorado County — El Dorado Hills, Cameron Park, Placerville, Diamond Springs, Pollock Pines
Yolo County — Davis, Woodland, West Sacramento, Winters, Esparto

If you're buying anywhere in Northern California, there's a good chance we can help.

Start exploring

Scroll down to find articles tailored to your situation. If you're not sure where to begin, here are three good starting points:

First-time buyer? Start with First-Time Homebuyer Programs in Sacramento.
Veteran or active-duty? Start with VA Home Loans: How Veterans Can Buy a Sacramento-Area Home With $0 Down.
Buying in a higher-priced market? Start with Jumbo Loans in El Dorado Hills.

Ready to talk?

Reading is great — but a 15-minute conversation will tell you more about what's possible for your specific situation than any article ever could. No pressure, no obligation, no salesy follow-up calls.

Chris Kennedy | The Chris Kennedy Team NMLS# 971546 Mortgage Lender serving Sacramento, Placer, El Dorado, and Yolo Counties www.thechriskennedyteam.com

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The Chris Kennedy Team specializes in FHA, VA, USDA, conventional, jumbo, and CalHFA loans throughout Sacramento, Roseville, Folsom, El Dorado Hills, Granite Bay, Davis, Woodland, Auburn, Lincoln, Rocklin, Cameron Park, and the surrounding Northern California region. Browse the articles below to learn more — or reach out anytime.

3% Down vs 3.5% Down: Conventional 97 vs FHA for Sacramento First-Timers

If you're a first-time buyer in Sacramento with limited cash, two loans dominate the conversation: the Conventional 97 (3% down) and the FHA loan (3.5% down). They look almost identical on the surface — they are not. The right pick can save you a few hundred dollars a month and tens of thousands over the years, mostly because of one word: insurance.

Here's the honest head-to-head, with Sacramento numbers.

The Core Difference: Mortgage Insurance

Both loans require mortgage insurance because you're putting down less than 20%. But they behave completely differently:

• Conventional 97 (PMI): Private mortgage insurance that falls off once you reach about 20% equity. Its cost is based on your credit score — strong credit means a low PMI rate.

• FHA (MIP): Mortgage insurance that, with the minimum down payment, sticks around for the life of the loan. The only way off it is to refinance or sell. Plus there's a 1.75% upfront premium financed into the loan.

That single distinction is why a higher-credit buyer often comes out ahead with Conventional 97, while FHA can be the better (or only) door for buyers with lower scores or higher debt.

Sacramento Side-by-Side: A $525,000 Home

Conventional 97

FHA

Down payment

3% = $15,750

3.5% = $18,375

Min. credit score (typical)

620+

580+ (500–579 needs 10% down)

Mortgage insurance

PMI, credit-based

MIP + 1.75% upfront

Does insurance drop off?

Yes, ~20% equity

No (life of loan)

Best for

Stronger credit

Lower credit / higher DTI

Notice the down payments are nearly the same — the real decision is about credit and how long you'll hold the loan. Rates shown are illustrative examples from early June 2026 and change daily — your number depends on credit, loan type, and the day you lock.

The HomeReady / Home Possible Bonus

If your income is at or below 80% of the area median, the conventional side has two upgraded versions — Fannie Mae's HomeReady and Freddie Mac's Home Possible. Same 3% down, but with reduced PMI and pricing breaks. There's also a Sacramento County wrinkle worth knowing: first-time buyers at or under about $121,500 in qualifying income can dodge certain loan-level pricing adjustments, which can shave your rate. Most buyers never hear this until it's too late.

So Which One Wins?

• Credit 700+, planning to stay a while? Conventional 97 (or HomeReady/Home Possible) usually wins — that disappearing PMI is real money.

• Credit in the 580–660 range or higher debt load? FHA is often more forgiving and may price better despite the permanent insurance.

• Not sure? Get both quoted side by side. The "best" loan is a math question, not a brand-loyalty question.

Frequently Asked Questions

Is 3% down conventional better than 3.5% down FHA in Sacramento?

For buyers with stronger credit (around 700+), Conventional 97 often wins because PMI eventually drops off. FHA can be better for lower credit scores or higher debt, even though its mortgage insurance can last the life of the loan.

What credit score do I need for a Conventional 97 loan?

Generally 620 or higher, though pricing improves significantly with stronger scores. FHA allows scores down to 580 with 3.5% down.

Does FHA mortgage insurance ever go away?

With the minimum down payment, FHA mortgage insurance typically lasts the life of the loan. To remove it you usually have to refinance into a conventional loan or sell.

What is HomeReady or Home Possible?

They're 3%-down conventional programs for buyers at or below 80% of area median income, offering reduced mortgage insurance and better pricing than a standard Conventional 97.

Not sure whether Conventional 97 or FHA fits your numbers? The Chris Kennedy Team will price both side by side so you can see the real difference — (916) 794-0777 or thechriskennedyteam.com.

Chris KennedyJune 9, 2026Comment

Sacramento Housing Blog