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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 in Sacramento

Rental income is one of the most powerful — and most misunderstood — pieces of mortgage qualification. Used correctly, it can mean qualifying for tens of thousands more in purchase power. Used incorrectly (or assumed away), it can quietly knock you out of a deal that should have worked.

Here's how lenders actually treat rental income in 2026, and where the rules trip people up.

Three buckets of rental income

1. Projected rent from the property you're buying

If you're buying a multi-unit and plan to rent the non-owner-occupied units, the appraiser provides a market rent schedule. Lenders typically count 75% of that toward your qualifying income (the 25% haircut accounts for vacancy and expenses).

2. Existing rental income from properties you already own

This usually comes from your tax returns — specifically Schedule E. Lenders look at two years and average the net rental income. If your tax return shows a loss after depreciation, lenders will often add the depreciation back to give you credit for the real cash flow.

3. Short-term rental (Airbnb/Vrbo) income

Rules tightened up here. Many lenders now require 12 to 24 months of consistent short-term rental history, documented through 1099s or platform statements. Some loan types still won't count it at all.

The Sacramento angle

Rents around Sacramento have stayed strong, which is good news for borrowers leaning on rental income. A duplex in Oak Park might appraise for market rent of $1,700 per unit. Add up two units, take 75%, and you've added roughly $2,550 in monthly qualifying income.

That can move the needle from "barely qualifies" to "comfortable" — or open the door to a bigger property than you thought possible.

Common mistakes that cost people deals

• Assuming any rental income counts. Lenders need documentation. Cash payments from a roommate generally won't qualify.

• Forgetting about Schedule E losses. If you have rentals that show paper losses, those reduce your qualifying income unless adjustments are made.

• Counting on rent before the lease exists. For a property you already own that you plan to rent in the future, lenders typically need a signed lease and first month's rent received.

What documents you'll need

• Two years of personal and business tax returns

• All Schedule E pages

• Current leases for any rental properties

• Property addresses and approximate values

• HOA statements where applicable

FAQ

Can rental income offset student loan debt for qualification?

Not directly. But it raises your qualifying income, which lowers your debt-to-income ratio overall.

Do I need a property management company for the income to count?

No. Self-managed rentals count just fine, as long as the income is documented on your tax return.

What if I just bought a rental and don't have tax history yet?

Some loan programs allow lease-based qualification. Programs vary — worth a specific conversation.

Can I use boarder income (renting bedrooms in my home)?

For most loan types, no. Some specialized programs allow it with documentation history.

Chris KennedyMay 26, 2026Comment

Sacramento Housing Blog