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Sacramento Housing Blog

Sacramento Housing Blog

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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:

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

[CALL NOW] | [GET PRE-APPROVED] | [SEND ME A MESSAGE]

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.

What Are Closing Costs When You Buy a Home in Sacramento? (2026 Real Numbers)

Closing costs in Sacramento typically run about 2% to 5% of the purchase price for a buyer — so on a $550,000 home, plan for roughly $11,000 to $27,000 beyond your down payment. The wide range exists because some costs are fixed fees, some are based on loan size, and several can be reduced, rolled in, or paid by the seller. Knowing which is which is how you keep thousands of dollars in your pocket.

Here's exactly where the money goes — and where you have leverage.

The short answer, by price point

Rough buyer closing cost estimates (excluding your down payment):

•    $450,000 home: about $9,000–$22,000

•    $550,000 home: about $11,000–$27,000

•    $700,000 home: about $14,000–$35,000

VA loans tend to land on the lower end (the VA limits certain fees), and these numbers shift with your loan type, points, and how much prepaid escrow your lender collects.

What's actually in your closing costs

Closing costs aren't one fee — they're a stack of them. The main buckets:

Lender fees. Origination, underwriting, processing. A transparent broker shows these clearly on your Loan Estimate. Watch this section closely.

Points (optional). Money you *choose* to pay to lower your rate. Not required — and sometimes the seller pays them for you via a buydown.

Third-party services. Appraisal, credit report, title insurance, escrow/settlement fees, recording fees. These are real services, not lender markup.

Prepaids and escrow setup. Prepaid interest, the first chunk of homeowners insurance, and property tax reserves your lender holds. This isn't a "fee" so much as money you'd pay anyway, just collected early. It's often the biggest surprise on the sheet.

Mello-Roos and HOA setup. In newer Sacramento-area communities — much of Folsom, parts of Elk Grove, Lincoln, Rocklin, and El Dorado Hills — Mello-Roos special taxes and HOA transfer fees can show up. Always ask before you fall in love with the house.

Who pays closing costs in Sacramento — buyer or seller?

Both sides have their own costs. As the buyer, you're generally responsible for your loan-related and prepaid costs. The seller typically covers their agent commissions and certain transfer items.

But here's the lever: sellers can contribute toward your closing costs. It's negotiable, and in a balanced or buyer-friendlier market, a well-structured offer can have the seller cover a big chunk — or even fund a rate buydown that lowers your payment. This is where a sharp broker and agent earn their keep.

How to lower or even eliminate your closing costs

You have more options than you think:

•    Seller credits. Negotiate a contribution toward your costs as part of the offer.

•    Lender credits ("no closing cost" loan). Accept a slightly higher rate and the lender covers some costs. Great if you'll refinance or move in a few years; less ideal if you'll stay forever. It's a trade-off, not free money.

•    Down payment assistance. CalHFA and other programs can help with costs, not just the down payment.

•    VA and USDA structures limit or reduce certain buyer fees.

•    Shop your loan. Lender fees vary. The Loan Estimate exists specifically so you can compare apples to apples.

The number that actually matters: cash to close

Forget the scary "closing costs" headline for a second. The figure to track is cash to close — your down payment plus closing costs minus any credits. That's what you actually wire on closing day. Two loans with identical rates can have very different cash-to-close numbers, which is why reading the full Loan Estimate beats reacting to a single quoted rate.

Frequently asked questions

How much are closing costs in Sacramento in 2026?

For buyers, typically 2%–5% of the purchase price. On a $550,000 home, that's roughly $11,000–$27,000 beyond your down payment, depending on loan type, points, and prepaid escrow.

Who pays closing costs when buying a house in Sacramento?

Buyers and sellers each have their own costs. Buyers cover most loan and prepaid costs, but sellers can be negotiated into contributing toward the buyer's closing costs as part of the deal.

Can closing costs be rolled into the loan?

Some can. On a refinance, costs are often rolled in. On a purchase, you typically can't finance closing costs directly, but you can use lender credits (a slightly higher rate) or seller credits to avoid paying them out of pocket.

Are there ways to buy with little cash out of pocket?

Yes. Combining a low-down or $0-down loan (FHA, VA, USDA), down payment assistance, and seller credits can get some Sacramento buyers to closing with very little of their own cash.

Do VA loans have lower closing costs?

Generally yes. The VA limits certain fees buyers can be charged, and there's no monthly mortgage insurance, which lowers overall costs — though a one-time VA funding fee may apply unless you're exempt.

The bottom line

Closing costs sound intimidating until you see them itemized — then you realize a big share is either negotiable, reducible, or money you'd pay anyway. The buyers who pay the least aren't lucky; they're the ones who read the Loan Estimate, ask about Mello-Roos early, and negotiate seller credits up front.

Want a real cash-to-close estimate for a specific Sacramento-area home? Get a transparent, itemized breakdown — no surprises at the table. Call (916) 794-0777 or book a free consultation.

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