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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.

Student Loans and Buying a Home in Sacramento: What Actually Counts Against You

Here's the truth most borrowers never hear: student loans rarely disqualify you from buying a home — they just change the math. Lenders don't care about your total balance nearly as much as they care about your monthly payment, and if you're on an income-driven repayment plan, the payment they count may be far smaller than you fear. Plenty of Sacramento buyers close every month carrying $40,000, $80,000, even $150,000 in student debt. The trick is knowing which number your loan program uses — because FHA, conventional, and VA all count student loans differently, and picking the right program can be worth tens of thousands in buying power.

The only number that matters: the payment, not the balance

Your student loans enter the mortgage conversation through your debt-to-income ratio (DTI) — your monthly debts divided by your gross monthly income. A $100,000 balance sounds scary, but if your income-driven plan sets the payment at $180 a month, that's what hits your ratio on most programs. Meanwhile, a $25,000 private loan with a $450 payment does more damage. Balance is a headline; payment is the math.

How each loan program counts student debt

Program

Payment Counted

If Your Reported Payment Is $0

Conventional (Fannie Mae)

The payment on your credit report, including income-driven payments

A documented $0 IDR payment can often count as $0; otherwise ~1% of balance or a fully amortizing payment

Conventional (Freddie Mac)

The payment on your credit report

Typically 0.5% of the outstanding balance

FHA

The actual documented payment

0.5% of the outstanding balance

Documented payment (special calculation rules apply)

Loans deferred 12+ months past closing may be excluded; otherwise a formula based on balance applies

See what's happening there? The same borrower can have three different DTIs depending on the program. A teacher in Elk Grove with $90,000 in federal loans and a documented $0 income-driven payment might sail through a conventional approval, while an older rule-of-thumb calculation would have added $900 a month of phantom debt. This is exactly why the "sorry, your student loans are too high" answer from one lender deserves a second opinion.

Time-sensitive note (July 2026): student-loan treatment rules are set by each agency and do change — and federal repayment plans have been in flux, with some income-driven plans being phased out or replaced under recent federal changes. Payment amounts on IDR plans may shift when borrowers are moved to new plans. Verify your current plan, your documented payment, and current agency guidelines before locking a strategy. Figures above reflect commonly applied guidelines as of this writing.

Five moves that boost buying power without paying off a dime

• Document your income-driven payment. A statement from your servicer showing the actual payment beats letting a lender default to a percentage of your balance.

• Pick the program that treats your situation best. Deferred loans? VA may exclude them. $0 IDR payment? Conventional may be your friend. In repayment with a modest payment? FHA's flexibility on overall DTI may win.

• Don't rush to pay off small balances. Wiping out a loan with a $40 payment barely moves your DTI but might drain your down payment fund. Target the biggest payments per dollar of payoff.

• Recertify strategically. If your IDR payment is about to recalculate, timing your application before or after can matter. Bring your paperwork and plan it.

• Use a co-borrower or down payment assistance. CalHFA and other programs covered in our down payment assistance guide stack with all of this.

Real Sacramento example

A nurse earning $95,000 carries $70,000 in federal student loans on an income-driven plan with a $210 monthly payment, plus a $380 car payment. Gross monthly income: $7,917. Debts: $590. At a 45% back-end DTI, about $3,563/month is available; minus existing debts, roughly $2,973 for total housing. After taxes and insurance on a mid-priced home, that supports a loan in the neighborhood of $350,000–$365,000 — enough for a solid condo or starter home in Citrus Heights, Rancho Cordova, or South Sacramento, especially paired with down payment assistance. Had a lender counted 1% of the balance ($700/month) instead of her documented $210, she'd have lost roughly $75,000 of buying power. Same person. Same debt. Different math.

FAQ: student loans and mortgages

Can I buy a house with student loans in default?

Defaulted federal loans are a problem — they can appear on CAIVRS and block government-backed loans until resolved. Rehabilitation or consolidation programs can fix this; start there before house shopping.

Do student loans in deferment count against me?

Usually yes on FHA and conventional (via a percentage of the balance if no payment is reported). VA may exclude loans deferred more than 12 months beyond closing. Program choice matters.

Should I pay off student loans before buying?

Not automatically. Cash for a down payment often does more good than shrinking a low-payment loan. Run both scenarios — the answer depends on which payments are dragging your ratio.

Does applying for a mortgage affect my student loans?

No. Your student loan terms don't change. The mortgage inquiry has a small, temporary credit-score effect like any application.

My spouse has the student debt — does it count if they're not on the loan?

California is a community property state, so on FHA and VA loans, a non-borrowing spouse's debts are generally counted in your qualifying ratios even when they're not on the mortgage. Conventional loans don't do this — another reason program selection is strategy, not paperwork.

Carrying student debt and wondering what you actually qualify for?

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