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in Sacramento, CA
Sacramento has one of California's largest veteran populations. That makes the VA loan conversation more relevant here than almost anywhere else in the state.
Both loan types can get you into a Sacramento home. But they work very differently — and picking the wrong one costs real money.
Conventional loans aren't backed by the government. That means lenders take on more risk — and they price that risk into your requirements.
You'll typically need a 620 credit score minimum and at least 3% down. Put less than 20% down and you pay PMI — private mortgage insurance — until you hit 20% equity.
VA loans are guaranteed by the Department of Veterans Affairs. Eligible borrowers get zero down payment, no PMI, and rates that typically beat conventional pricing.
There is a funding fee — a one-time cost rolled into the loan — but it's waived for veterans with service-connected disabilities. That's a significant savings for many Sacramento buyers.
Local decision guide
Use this comparison to weigh Conventional Loans and VA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Sacramento.
Sacramento has one of California's largest veteran populations. That makes the VA loan conversation more relevant here than almost anywhere else in the state.
Both loan types can get you into a Sacramento home. But they work very differently — and picking the wrong one costs real money.
Conventional loans aren't backed by the government. That means lenders take on more risk — and they price that risk into your requirements.
HousingWire flagged the 30-year fixed rate at 6.57% with applications down sharply. VA rates typically run below that benchmark — worth knowing if you qualify.
Conventional loans have no eligibility restriction. VA loans require a Certificate of Eligibility. If you can't document your service, the VA option is off the table.
VA loans also carry no loan limit for full-entitlement borrowers. Conventional conforming loans cap at county limits — Sacramento County's 2026 limit applies to standard conventional financing.
If you have VA eligibility, use it. Zero down and no PMI outperforms almost every conventional scenario — especially with Sacramento home prices where down payments are substantial.
Conventional makes sense if you have 20% down, strong credit, and want to buy a second home or investment property. VA loans are for primary residences only.
Rates vary by borrower profile and market conditions. Talk to us before assuming one loan type is cheaper — the numbers don't always go the direction people expect.
Yes, if you have remaining entitlement. Many Sacramento veterans buy a second primary residence with VA financing while keeping their first home.
They used to. Most VA loans now close on a similar timeline to conventional. The VA appraisal process is slightly more strict, but it rarely causes major delays.
The VA sets no official minimum. Most lenders want at least 580-620. We work with lenders across that range.
Only if you put less than 20% down. PMI is canceled automatically once you reach 20% equity based on original purchase price.
Yes. Un-remarried surviving spouses of veterans who died in service or from service-connected causes are eligible for VA loan benefits.
VA has a funding fee; conventional has no equivalent. But VA's lack of PMI and lower rates usually produce lower total costs over time.