Question 1

What's the 2026 conforming loan limit in Sacramento County?

Accepted Answer

The conforming limit is $832,750. Loans above that are jumbo and carry stricter requirements. VA and conventional loans both max out at this ceiling.

Question 2

Is Sacramento County an FHA high-cost area?

Accepted Answer

Yes. Sacramento County is designated as an FHA high-cost area. This affects upfront mortgage insurance and your FHA payment calculation.

Question 3

How much down payment do I need for a conventional loan?

Accepted Answer

Conventional loans typically require 3% to 20% down. At 20% down, you skip PMI entirely. Below 20%, mortgage insurance applies until you hit 78% loan-to-value.

Question 4

What credit score do I need to qualify for a mortgage?

Accepted Answer

Most conventional lenders require 620 or higher. FHA accepts 580 with 3.5% down. VA loans have no minimum FICO, though 620 is common. Jumbo loans typically want 700 or better.

Question 5

Do I need 20% down to avoid PMI on a conventional loan?

Accepted Answer

Yes. At exactly 20% down, PMI disappears. Below that, mortgage insurance applies. PMI cancels automatically once you reach 78% loan-to-value through payments or appreciation.

Question 6

What's the FHA loan limit in Sacramento County?

Accepted Answer

The 2026 FHA limit is $764,750. Sacramento County is a high-cost area. FHA mortgage insurance rates may be higher than in standard-cost counties.

Question 7

Can I get a VA loan with zero down?

Accepted Answer

Yes. VA loans allow zero down for eligible veterans, active duty, and surviving spouses with a Certificate of Eligibility. A funding fee replaces PMI—typically 2.15% at zero down for first-time use.

Question 8

How does the school funding situation affect my mortgage decision?

Accepted Answer

Sacramento City Unified faces a significant budget deficit. This may impact property values and resale appeal in some neighborhoods. Check which schools serve your specific address before committing.

Question 9

What's the difference between FHA and conventional loans?

Accepted Answer

FHA requires 3.5% down minimum and allows lower credit scores. Conventional needs 3% to 5% down typically. FHA carries mortgage insurance for the loan's life if down payment is under 10%; conventional PMI cancels at 78% LTV.

Question 10

Is Rancho Cordova a good market for jumbo loans?

Accepted Answer

Jumbo loans apply above $832,750. They require 20% down, 700+ credit, and solid reserves. Rates typically run 0.125% to 0.5% above conforming. Most Rancho Cordova purchases stay under the conforming limit.

Question 11

How long does closing typically take?

Accepted Answer

Most closings take 30 to 45 days from application to funding. Jumbo loans and cash-out refinances may take longer. Clear title and straightforward income verification speed things up.

Question 12

What income do I need to qualify?

Accepted Answer

Lenders typically use a 43% debt-to-income ratio. Sacramento County's median household income is $88,724. Your actual qualifying income depends on debts, credit, and down payment.

Question 13

Can I use a VA Streamline refinance?

Accepted Answer

Yes. The VA Streamline (IRRRL) lets existing VA borrowers refinance with minimal paperwork and no new appraisal. You must have a current VA loan and a Certificate of Eligibility.

Question 14

What are closing costs in Rancho Cordova?

Accepted Answer

Closing costs typically run 2% to 5% of the loan amount. They include appraisal, title, underwriting, and lender fees. Your lender will provide a detailed estimate within three days of application.

Rancho Cordova mortgage questions answered