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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.

Solar Panels, PACE Liens, and Your Mortgage: What Every Sacramento Buyer and Seller Needs to Know

Solar is everywhere in the Sacramento Valley — and how those panels were paid for can make or break a home sale. Owned panels? Usually a clean plus. Leased panels or a power purchase agreement? A transfer process and possibly a debt that counts against the buyer. Panels financed through a PACE program (you might know the brand names HERO or Ygrene)? That's a property tax lien that most mortgage programs won't lend behind — meaning it often must be paid off before the home can sell or refinance. Here's how to spot each situation early, before it costs anyone a deal.

First question on any solar home: how were the panels paid for?

How the Solar Was Financed

What It Means for a Sale or Mortgage

Owned outright (cash or paid-off loan)

Cleanest scenario — panels transfer with the home like any fixture; may support value

Solar loan (secured by the equipment)

Seller typically pays off the loan at closing, or buyer formally assumes it; a UCC-1 filing on the panels must be released or subordinated

Lease or Power Purchase Agreement (PPA)

Buyer must qualify with and formally assume the monthly payment (often counted in DTI), or seller buys out the contract

PACE / HERO / Ygrene assessment

Repaid through property taxes as a senior lien — most loan programs require payoff (or in limited cases subordination) before purchase or refinance

Why PACE liens are the big one

PACE (Property Assessed Clean Energy) financing lets homeowners fund solar, HVAC, roofs, and windows through an assessment added to their property tax bill. Convenient going in — complicated going out. Because a PACE assessment collects through property taxes, it sits senior to a mortgage. Fannie Mae and Freddie Mac won't purchase loans on properties with senior PACE liens, and FHA and VA policies restrict them as well. Translation for real life:

• Selling a home with a PACE lien? In most cases it must be paid off through escrow — which comes out of the seller's proceeds, sometimes tens of thousands of dollars the seller forgot was there because it hid inside the tax bill.

• Buying one? Your lender will require the payoff or, rarely, a subordination if the PACE provider offers one and the program allows it. Build this into the offer and the timeline.

• Refinancing with one? Same story — many refinances must pay off the PACE balance, which changes the loan amount and the math. Sometimes that payoff is the reason to refinance; the assessment often carries a high effective rate.

How do you even know a PACE lien exists? Look at the property tax bill for line items with names like "HERO," "Ygrene," "CaliforniaFIRST," or "energy assessment," and check the preliminary title report during escrow. Listing agents: surface this before you list. Buyers: ask on day one.

Leased solar: the quieter deal-slower

A lease or PPA isn't a lien on the house, but it's a contract someone has to keep paying. The buyer generally must apply with the solar company to assume it — a mini credit approval inside your escrow — and lenders commonly count the payment in the buyer's debt-to-income ratio. A $160/month lease payment reduces buying power by roughly $25,000 at today's rates. Some sellers instead prepay or buy out the lease to keep the sale clean; that's a negotiation point, just like the seller credits covered in our seller concessions guide.

For sellers: make solar an asset, not an anchor

• Pull your solar paperwork before listing — ownership status, loan balance or lease terms, transfer requirements, and any UCC filings.

• Get payoff quotes early. PACE payoffs and lease buyouts can take weeks to process; late requests delay closings.

• Price with eyes open. Owned solar can support value; a big lease or PACE balance effectively reduces net proceeds. Better to know in July than discover in escrow.

Time-sensitive notes (July 2026): agency policies on PACE liens (Fannie, Freddie, FHA, VA) have shifted over the years and may change again — confirm current guidelines at application. California has also tightened PACE consumer protections since the program's peak. DTI example assumes rates in the mid-6% range (Freddie Mac: 6.55%, week of July 16, 2026). Solar lease transfer requirements vary by provider; check the specific contract early in escrow.

FAQ: solar and mortgages

Do solar panels increase my home's appraised value?

Owned systems can contribute value, supported by comparable sales. Leased systems and PACE-financed systems generally do not add appraised value, since the buyer inherits an obligation along with the panels.

Can I buy a house and just cancel the solar lease?

Not unilaterally — the lease is a contract with buyout terms. The seller can buy it out, you can assume it, or occasionally the panels are removed. All three get negotiated in the purchase contract.

Is a PACE lien the same as a solar loan?

No. A solar loan is secured by the equipment; a PACE assessment is collected through your property taxes and sits ahead of your mortgage. The PACE structure is what triggers the strict lender rules.

Will my lender find the PACE lien if the seller doesn't mention it?

Yes — it appears on the tax bill and title report. Better for everyone that it's surfaced on day one instead of week five.

Can I roll a PACE payoff into my refinance?

Often yes — and because PACE assessments frequently carry high effective costs, paying one off in a refinance can be the smartest use of your equity. Run the numbers both ways.

Buying or selling a solar home and want the financing side clean from day one?

Call The Chris Kennedy Team at (916) 794-0777 or visit thechriskennedyteam.com to get started. Serving Sacramento, Placer, El Dorado, and Yolo counties.

The Chris Kennedy Team | Reliant Lending | NMLS #971546. Equal Housing Opportunity. This article is for educational purposes only and is not a commitment to lend. Rates, program guidelines, and figures referenced are subject to change without notice. Contact a licensed loan officer for current terms and a personalized quote. Not tax or legal advice — consult a qualified professional regarding your specific situation.

Chris KennedyJuly 20, 2026Comment

Sacramento Housing Blog