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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.

Using Rental Income to Qualify for a Mortgage: A Sacramento Buyer’s Guide

Yes — lenders will often let you use rental income to help you qualify for a mortgage, whether it comes from a multi-unit property, an ADU, a room you rent out, or the home you’re moving out of. But they don’t count all of it. Most loan programs use about 75% of the rent (a 25% “vacancy factor”), and the income usually has to be backed by a lease or an appraiser’s market-rent estimate. Used right, it’s one of the most powerful ways to stretch your buying power in the Sacramento market.

The 75% rule (why lenders “haircut” your rent)

Lenders know rentals aren’t income 100% of the time — there are vacancies, repairs, and the occasional late payment. So instead of counting the full rent, most programs count about 75% of it. If a unit rents for $2,000 a month, the lender typically credits you with $1,500 toward qualifying. That 25% cushion is the single biggest thing buyers get wrong when they run their own numbers.

Four ways to use rental income in Sacramento

1. The multi-unit house hack (2–4 units)

Buy a duplex, triplex, or fourplex, live in one unit, and rent the others. Because you live there, you get owner-occupied financing — as little as 3.5% down on FHA or low-down conventional — and the projected rent from the other units (estimated by the appraiser) can count toward your qualifying income. It’s the classic first step to building a rental portfolio while someone else helps pay your mortgage.

2. ADU income

Sacramento’s ADU boom opened a door: on a single-family home with a permitted accessory dwelling unit (a granny flat or casita), conventional guidelines now allow you to use a portion of that ADU’s rental income to help you qualify — even on a primary residence. If you’re buying a home that already has an ADU, that’s real qualifying power most buyers don’t realize they have.

3. Your departing residence

Moving up but want to keep your current home as a rental? With a signed lease (and sometimes a check on your equity or reserves), lenders can count that rental income so the old mortgage doesn’t sink your ability to qualify for the new one. This is how a lot of Sacramento families turn their starter home into their first rental instead of selling it.

4. Boarder or roommate income

Renting out a room? Certain programs (like HomeReady) let you count boarder income toward qualifying when you can show a history of receiving it. It won’t move the needle as much as a full unit, but for the right buyer it’s the difference between approved and not.

Income source

What you need to document

Roughly how much counts

Multi-unit (2–4) you’ll live in

Appraisal market-rent schedule (Form 1025)

~75% of market rent

ADU on a primary residence

Lease and/or appraiser market rent

Portion of rent per guidelines

Departing residence rental

Signed lease; sometimes equity/reserves

~75% of lease rent

Boarder / roommate

History of payments + documentation

Per program (e.g., HomeReady)

A Sacramento example

Say you buy a duplex in the Sacramento area, live on one side, and the other side rents for $1,900 a month. At the 75% factor, the lender credits you with about $1,425 a month of qualifying income. That added income can lift the loan amount you qualify for by tens of thousands of dollars — while a tenant covers a big chunk of your payment. That’s the house-hack math in one move.

What you’ll need to have ready

• An appraisal with a market-rent estimate (Form 1007 for a single unit, Form 1025 for multi-unit).

• Signed leases for any unit or home that’s already rented.

• Tax returns (Schedule E) if you already own rental property.

• Proof of reserves — some scenarios require a few months’ payments in the bank.

Frequently Asked Questions

How much rental income can I actually use?

Most programs count about 75% of the rent, holding back roughly 25% for vacancy and upkeep.

Can I use rent on a home I haven’t rented out yet?

Often yes — for a property you’ll occupy with extra units or an ADU, an appraiser can estimate market rent that counts toward qualifying, even before a tenant moves in.

Does ADU income really count?

On a primary residence with a permitted ADU, conventional guidelines now allow a portion of that rental income to be used. The exact treatment depends on the program.

Can I keep my current home and rent it out?

Yes. With a signed lease — and sometimes a look at your equity or reserves — lenders can count that income so your existing mortgage doesn’t block the new loan.

Do I need to already be a landlord?

No. For an owner-occupied multi-unit or an ADU purchase, you can use projected rent without any prior landlord history.

Want to see how much a tenant could add to your buying power?

Whether it’s a duplex, a home with an ADU, or keeping your current place as a rental, the numbers are usually better than buyers expect — once you account for the 75% rule the right way. A quick call can map out exactly what you’d qualify for.

Call or text (916) 794-0777 • thechriskennedyteam.com

Chris Kennedy | The Chris Kennedy Team | NMLS #971546

Serving Sacramento, Placer, El Dorado & Yolo Counties

Chris KennedyJune 29, 2026Comment

Sacramento Housing Blog