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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 Credit Score Do You Need to Buy a House in Sacramento? (2026 Guide)

The short answer: you can buy a home in Sacramento with a credit score as low as 500 on an FHA loan, 580 on a VA loan, 620 on a conventional loan, and 680–700+ on a jumbo loan. But the minimum to qualify and the score you need to get a good rate are two very different numbers. Here's what each loan type actually requires in 2026 — and where the real cutoffs live.

Minimum Credit Score by Loan Type (2026)

Loan TypeAbsolute MinimumWhat Actually Gets ApprovedBest-Rate ScoreFHA500 (with 10% down)580+720+VANo official minimum580–620 (lender overlay)720+USDANo official minimum640+720+Conventional620660+740+Jumbo680700–720+760+Non-QM (Bank Statement / DSCR)600–660680+720+

The "absolute minimum" is what the loan program allows. The "what actually gets approved" column is what most Sacramento lenders will actually fund, because lenders add their own rules on top of government guidelines. Those extra rules are called overlays, and they're the reason a buyer can technically qualify on paper but still get denied.

FHA Loans: 500 Is the Floor (Sort Of)

FHA technically allows credit scores down to 500 with 10% down, or 580 with 3.5% down. In real life, most Sacramento lenders won't fund below 580, and many require 620 or higher. If your score is between 580 and 620, expect a higher rate and tighter debt-to-income limits.

FHA is the most forgiving loan type for credit issues, recent collections, and shorter histories. It's the go-to for first-time buyers in Elk Grove, Citrus Heights, Antelope, and North Sacramento — where the median price still fits FHA loan limits comfortably.

VA Loans: No Official Minimum, But Lenders Have Their Own

The VA itself has no minimum credit score. The Department of Veterans Affairs guarantees the loan; it doesn't set the score. Individual lenders set their own floors, and most Sacramento-area lenders require 580–620 minimum. Some specialty VA lenders will go to 550.

Here's what matters more than the score itself for VA loans:

  • Residual income — VA loans require leftover monthly income after all bills are paid. Sacramento veterans need around $1,003/month residual for a family of four in the Western region.

  • Recent payment history — A 720 score with a recent 30-day late on a car loan can hurt more than a 640 score with clean recent history.

  • Manual underwriting option — If automated underwriting denies you, VA loans can be manually underwritten, which gives a human reviewer the chance to approve based on the full picture.

USDA Loans: Surprising Sacramento-Area Eligibility

USDA loans require no down payment and have no official credit minimum, though most lenders want 640. What people don't realize: large parts of Placer County (Lincoln, Auburn, Newcastle), El Dorado County (Cameron Park, Diamond Springs, Pollock Pines), and Yolo County (Winters, Esparto, Capay) are USDA-eligible. The income limits are generous too — over $120,000 for a family of four in most of the region.

Conventional Loans: 620 Minimum, 740 for Best Rates

Conventional loans (Fannie Mae and Freddie Mac) require 620 minimum, but the interest rate and mortgage insurance cost scale dramatically with your score:

  • 620–659: Higher rate, expensive PMI

  • 660–699: Better rate, moderate PMI

  • 700–739: Solid rate, reasonable PMI

  • 740+: Best available rate, cheapest PMI

The jump from 739 to 740 can save a Sacramento buyer hundreds of dollars per month on a $550,000 home. If your score is at 735, it's worth waiting 30–60 days to push past 740 before locking.

Jumbo Loans: 680 Minimum, 760 for Premium Pricing

Jumbo loans are anything above the conforming limit — in Sacramento County, that's $806,500 for 2026 (and higher in Placer and El Dorado for high-balance loans). For El Dorado Hills, Granite Bay, Serrano, and luxury Folsom homes, jumbo financing is often the only option.

Most jumbo programs require 700–720 minimum, with the best terms reserved for 760+. Reserves matter just as much as score — expect to show 6–12 months of payments in liquid assets.

What Affects Your Score the Most (And Fastest)

If your score isn't where you need it yet, focus on what moves the needle fastest:

  1. Credit utilization — Pay revolving balances below 30% (ideally below 10%) of the limit. This can move scores 20–40 points in a single billing cycle.

  2. Rapid rescore — A lender can request a 3–5 day credit update after you pay down balances. No more waiting 30+ days for credit bureaus to catch up.

  3. Don't close old accounts — Length of credit history matters. Keep old cards open even if you don't use them.

  4. Dispute carefully — Disputing items during the mortgage process can pause underwriting. Talk to your lender first.

What Credit Mistakes to Avoid While You're House Shopping

  • Don't open new credit cards or finance a car

  • Don't close credit accounts

  • Don't make large unexplained deposits

  • Don't co-sign anything

  • Don't let any account go past due, even by a day

Any of these can drop your score 30–80 points and either kill your approval or bump your rate.

Frequently Asked Questions

What credit score is needed to buy a house in Sacramento with no down payment?

You'll need either a VA loan (580+ score, military service required) or a USDA loan (640+ score, eligible rural area). Both offer $0 down. Without one of those, you'll need at least 3–3.5% down.

Can I buy a house in Sacramento with a 600 credit score?

Yes. FHA loans accept 580+, and many Sacramento lenders fund FHA at 600. Expect a slightly higher rate than 680+ borrowers, but you can absolutely close.

What's the minimum credit score for a VA loan in Sacramento?

The VA has no minimum, but most local lenders require 580–620. A few specialty VA lenders accept 550 with strong residual income and clean recent history.

Does my spouse's credit score affect my mortgage?

If you're applying jointly, lenders use the lower of the two middle scores. If your spouse has a lower score, sometimes applying solo (and qualifying on your income alone) leads to better terms.

How much can I raise my credit score in 30 days?

Realistically, 20–60 points is possible by paying down credit card balances and disputing inaccurate items. Don't believe any service promising 100+ point jumps in a month — that's almost always a scam.

Will checking my own credit score lower it?

No. Checking your own score is a soft inquiry and doesn't affect your score. Only hard inquiries from lenders pulling credit for new accounts impact your score, and even those are minor (3–5 points each).

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