*Learn more about the housing market…*

**New posts each week!**

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

[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.

Your Appraisal Came in Low — Here’s What Happens Next (Sacramento Guide)

When an appraisal comes in below your purchase price, it doesn’t automatically kill the deal — it just means your lender will only lend based on the lower value. You’ve got four real moves: ask the seller to lower the price, cover the gap with extra cash, challenge the appraisal with a reconsideration of value, or walk away if your contract protects you. Which one makes sense comes down to your contract, your cash, and how much you love the house.

Why a low appraisal matters

Your lender lends on the lower of the purchase price or the appraised value — never the higher one. So if you agreed to pay $600,000 and the appraisal comes back at $580,000, the lender treats the home as a $580,000 home. That $20,000 difference is called the appraisal gap, and someone has to account for it before the loan can close.

Your four options

1. Renegotiate the price

The cleanest fix: ask the seller to drop the price to the appraised value. In a balanced market, sellers often agree — because the next buyer’s appraisal will likely come in at the same number. This is the most common outcome when the gap is modest.

2. Cover the gap with cash

You can bring the difference — here, $20,000 — to the table in addition to your down payment. This is “appraisal gap coverage,” and in competitive Sacramento offers buyers sometimes agree to it up front to win the home. It only works if you have the extra cash on hand.

3. Request a Reconsideration of Value (ROV)

If you believe the appraiser missed strong comparable sales or made a factual error, you can formally ask for a reconsideration of value. Lenders now have a standardized ROV process, and a well-supported request — better comps, corrected square footage, overlooked upgrades — can sometimes move the number.

4. Walk away

If you kept an appraisal contingency in your contract, a low appraisal typically lets you exit the deal and keep your earnest money deposit. Not the outcome anyone wants, but it’s the protection that contingency exists for.

Option

What it costs you

When it makes sense

Renegotiate price

Nothing — seller absorbs it

Balanced market; seller is motivated

Cover the gap in cash

The full gap, out of pocket

You have reserves and really want the home

Reconsideration of value

Time and documentation

You have genuinely better comps or a clear error

Walk away

Usually nothing (with contingency)

Gap is too big and seller won’t budge

How to lower the odds of a low appraisal

• Have your agent send the appraiser a list of recent, truly comparable sales.

• Provide a list of upgrades and improvements the seller has made.

• Don’t over-offer without a plan for how you’d handle a gap.

• Decide your appraisal-gap strategy before you write the offer, not after.

What this means for your offer strategy

In a fast-moving market, talking through the appraisal scenario with your lender before you offer is what separates calm buyers from stressed ones. Knowing in advance how much of a gap you could cover — and whether you want that protection or that flexibility — lets you write a stronger, smarter offer with no surprises at the finish line.

Frequently Asked Questions

Does a low appraisal kill the deal?

No. You have four options — renegotiate the price, cover the gap in cash, request a reconsideration of value, or walk away if your contract allows.

Will the lender just order a new appraisal?

Usually not automatically. The standard path is to request a reconsideration of value with better comparable sales or a correction, rather than a brand-new appraisal.

Can I actually dispute an appraisal?

Yes. Through a reconsideration of value, you can submit stronger comps or point out factual errors. It doesn’t always change the number, but a well-supported request can.

Do I lose my deposit if I walk away?

Typically not, as long as you kept an appraisal contingency in your contract. That contingency exists to protect your earnest money in exactly this situation.

How often do appraisals come in low?

It varies with the market. It happens more often when prices are rising quickly and recent sales haven’t caught up to current offers.

Writing an offer in a competitive Sacramento market?

The best time to plan for a low appraisal is before you write the offer — not the day it comes back. A quick conversation can map out your gap strategy so you can compete confidently and avoid a scramble at closing.

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