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Sacramento is one of California's most active mid-tier markets. Conventional loans are the dominant financing tool here — and for good reason.
HousingWire flagged the 30-year fixed hitting 6.57% with applications dropping over 10%. That rate sensitivity matters for Sacramento buyers watching their monthly payment.
620
Min Credit Score
3%
Min Down Payment
20% Down
PMI Required Below
Varies Daily
30-Yr Fixed (Mkt)
45%
Max DTI (Typical)
Most conventional loans require a 620 minimum credit score. To avoid private mortgage insurance, you need 20% down.
Debt-to-income ratio — your monthly debts divided by gross income — typically must stay under 45%. Strong credit scores can push that limit higher with some lenders.
We work with 200+ wholesale lenders — so we're not stuck with one rate sheet. That matters when conventional pricing swings this much week to week.
Retail banks quote one rate. We shop dozens of investors simultaneously. Sacramento borrowers consistently see better pricing through the wholesale channel.
The biggest mistake Sacramento buyers make: assuming conventional always beats FHA. Run the numbers on PMI versus the FHA mortgage insurance premium first.
If your score is between 620 and 679, conventional PMI can be expensive. Sometimes FHA pencils out better until you hit 680 or above.
FHA loans allow lower credit scores and smaller down payments. But they carry lifetime mortgage insurance — conventional drops PMI once you hit 20% equity.
Jumbo loans kick in above the conforming limit. If your Sacramento purchase stays under that ceiling, conventional conforming gives you the best rate and flexibility.
Sacramento's market runs hot in spring and cools by fall. Sellers in competitive zip codes still expect strong pre-approvals — conventional financing signals a clean deal.
County-specific conforming loan limits set the ceiling for conventional pricing. Anything above that ceiling moves into jumbo territory with stricter guidelines.
Most lenders require at least 620. Better pricing kicks in at 680 and above.
Yes — 3% down is available for first-time buyers. You'll pay PMI until you reach 20% equity.
Request cancellation once your loan balance drops to 80% of the home's original value. Lenders must remove it at 78% automatically.
Depends on your credit score and down payment. We run both scenarios — the answer changes at different price points.
Conforming limits are set annually by the FHFA. Ask us for the current Sacramento County ceiling before structuring your loan.
Yes, but the condo project must be on an approved list. Some Sacramento developments don't meet conventional guidelines.
Conventional Loans in Sacramento