Question 1

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

Accepted Answer

The 2026 conforming limit is $832,750. Loans above that amount are jumbo and carry stricter requirements. VA and conventional loans both top out at this ceiling.

Question 2

Is Sacramento County an FHA high-cost area?

Accepted Answer

Yes. Sacramento is designated a high-cost area for FHA purposes. The FHA limit here is $764,750, which is lower than the conforming ceiling.

Question 3

Can I get a VA loan with zero down in Sacramento?

Accepted Answer

Yes. VA loans allow zero down for eligible veterans, active duty, and surviving spouses with a Certificate of Eligibility. The funding fee replaces PMI.

Question 4

What credit score do I need to qualify for a conventional loan?

Accepted Answer

Most lenders want 620 or higher for FHA and 640 or higher for conventional. Stronger credit (740+) opens better rates and terms.

Question 5

How much down payment do I need to avoid PMI?

Accepted Answer

Yes — 20% down is the only way to skip PMI on a conventional loan. Below 20%, PMI applies until you hit 78% LTV or request cancellation at 80%.

Question 6

What does the school funding crisis mean for Sacramento home values?

Accepted Answer

Sacramento City Unified faces a $170 million deficit, which may affect property values in attendance zones. Buyers should research specific school boundaries before committing.

Question 7

How does FHA's upfront mortgage insurance work?

Accepted Answer

FHA charges 1.75% upfront MIP rolled into the loan. If you put down less than 10%, MIP runs for the life of the loan. With 10%+ down, it cancels after 11 years.

Question 8

What's the difference between conforming and jumbo loans in Sacramento?

Accepted Answer

Conforming loans max at $832,750 and follow standard guidelines. Jumbo loans above that limit typically require 20% down, 700+ FICO, and carry rates 0.125% to 0.5% higher.

Question 9

Can I carry two mortgages while buying in Sacramento?

Accepted Answer

Yes. If you have equity or savings, carrying two mortgages is possible. Lenders will count both payments toward your debt-to-income ratio.

Question 10

What's the typical closing timeline in Sacramento?

Accepted Answer

Conventional loans close in 30 to 45 days. FHA and VA loans may take 45 to 60 days due to appraisal and inspection requirements.

Question 11

Can I use a gift for my down payment?

Accepted Answer

Yes. Most lenders accept gift funds from family. You'll need a gift letter stating the money is a gift, not a loan, and the donor's bank statement.

Question 12

How does Sacramento's median income affect my loan approval?

Accepted Answer

Sacramento County's median household income is $88,724. Lenders use this to set debt-to-income caps. Higher income relative to the median strengthens your application.

Question 13

What happens if I put down less than 5% on a conventional loan?

Accepted Answer

Conventional loans below 5% down are rare. Most lenders require 5% to 10% minimum. PMI applies and rates may be higher than 10%+ down scenarios.

Sacramento home loan questions answered