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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.

Tahoe Second Home Loans: Second Home vs Investment

A Tahoe cabin can be financed as a second home or as an investment property, and the label decides your down payment and your pricing. Under current Fannie Mae guidelines, a one unit second home can go up to 90% financing. A one unit investment property tops out at 85%. The catch is that you do not get to pick the label. How you plan to use the place picks it for you.

That matters a lot for Sacramento area families. South Lake Tahoe and the West Shore sit in El Dorado County. Tahoe City, Kings Beach, and Olympic Valley sit in Placer County. Both are about two hours up Highway 50 or Interstate 80, which makes a weekend cabin a real option and not a daydream.

What Counts as a Second Home

Fannie Mae spells out the test in its Selling Guide. A second home must meet all of these:

You occupy it for some portion of the year.
It is a one unit property. No duplexes.
It is suitable for year round use.
You have exclusive control over it.
It is not a timeshare.
No management company has control over who occupies it.

That last one trips people up. Some Tahoe condo projects require owners to put the unit in a rental pool. If a management firm controls the calendar, the loan is not a second home loan.

Can You Rent Out a Second Home?

Sometimes, within limits. Fannie Mae allows a second home to earn rental income as long as that income is not used to qualify for the loan and the property still meets every second home requirement.

So if you need the rent to make the numbers work, you are looking at an investment property loan. If the cabin is mostly for your family and you rent it a few weekends, a second home loan may still fit. Individual lenders can add their own rules on top, so ask early.

Second Home vs Investment Property: The Real Differences

Down payment. Second home purchases can go as high as 90% loan to value. One unit investment purchases go to 85%. Many buyers put down more to improve pricing.
Pricing. Both carry pricing adjustments compared with a primary residence. Investment property adjustments are typically larger.
Qualifying income. Investment loans may allow projected rent to help you qualify. Second home loans do not.
Reserves. Expect the lender to want extra months of payments in the bank for either one.

The Short Term Rental Wrinkle in Tahoe

Do not buy a cabin assuming Airbnb income will cover it. Tahoe rental rules are tight and they change.

The City of South Lake Tahoe caps vacation home rental permits in residential zones at 900. As of August 21, 2026, new applications go on a waitlist with no estimated wait time. El Dorado County and Placer County each run their own permit programs for areas outside city limits.

Check the permit situation for the exact address before you write an offer. A permit held by the seller does not always transfer to you.

Do Not Fudge the Occupancy

Calling a rental a second home to get better terms is occupancy misrepresentation. That is mortgage fraud, and lenders do check. Be straight about your plans and let the loan fit the plan. There is almost always a clean way to structure it.

Three Things to Sort Out Before You Shop

Insurance. Wildfire coverage in the Tahoe basin can be hard to place and expensive. Get a quote during your inspection window, not the week of closing.
HOA rules. Condos near the lifts sometimes run like hotels. That can make the whole project hard to finance.
Your primary home budget. The cabin payment counts against your debt to income ratio along with your Sacramento mortgage.

Frequently Asked Questions

How much do you need down for a second home in Lake Tahoe? Fannie Mae allows up to 90% financing on a one unit second home purchase, which means as little as 10% down. Your lender, credit, and loan size can push that higher. Loans above the conforming limit follow jumbo rules, which usually ask for more.

Can you use rental income to qualify for a second home loan? No. Under Fannie Mae guidelines, rental income from a second home cannot be used to qualify. If you need the rent to qualify, the loan is treated as an investment property loan.

Is South Lake Tahoe in Sacramento County? No. South Lake Tahoe is in El Dorado County. Tahoe City and Kings Beach are in Placer County.

Can you get a short term rental permit in South Lake Tahoe right now? The city caps residential zone permits at 900 and has been placing new applications on a waitlist since August 21, 2026. Confirm current status with the city before you buy.

Is a duplex in Tahoe eligible for a second home loan? No. Second home loans under Fannie Mae guidelines are limited to one unit properties. A duplex would be financed as an investment property unless you live in it as your primary home.

Thinking about a place in Tahoe? Call or text (916) 794-0777 or visit thechriskennedyteam.com for a straight answer on how your plan would be classified and what it would take to qualify. The Chris Kennedy Team at Reliant Lending serves Sacramento, Placer, and El Dorado counties. NMLS #971546. Company NMLS #356310. This is general education and not a commitment to lend. All loans are subject to credit approval and program guidelines.

Chris KennedyOctober 4, 2026Comment

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