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West Sacramento sits in Yolo County, just across the river from Sacramento. Entry-level buyers here can actually use FHA financing — prices haven't outrun FHA limits the way they have in the Bay Area.
FHA loans are government-backed mortgages with low down payments and flexible credit rules. For first-time buyers in this market, that combination matters.
580
Min Credit Score (3.5% Down)
3.5%
Minimum Down Payment
1.75% of loan
Upfront MIP
6% of purchase price
Max Seller Concessions
See current offers
Rates Vary By Profile
FHA Loans in West Sacramento
You need a 580 credit score to put 3.5% down. Drop below 580 but stay above 500, and lenders require 10% down instead.
Your debt-to-income ratio — total monthly debt divided by gross income — generally needs to stay under 43%. Some lenders go higher with strong compensating factors.
Local decision guide
Use this guide to connect fha loans eligibility, lender expectations, and local market factors before comparing payment options in West Sacramento.
West Sacramento sits in Yolo County, just across the river from Sacramento. Entry-level buyers here can actually use FHA financing — prices haven't outrun FHA limits the way they have in the Bay Area.
FHA loans are government-backed mortgages with low down payments and flexible credit rules. For first-time buyers in this market, that combination matters.
You need a 580 credit score to put 3.5% down. Drop below 580 but stay above 500, and lenders require 10% down instead.
Most retail banks offer FHA loans, but their overlays — extra rules on top of FHA minimums — can disqualify borrowers who would otherwise qualify. Wholesale lenders tend to have tighter pricing and fewer overlays.
As a broker, we shop FHA programs across 200+ wholesale lenders. That means more options than walking into one bank and hoping their guidelines fit your file.
The biggest FHA mistake we see: buyers focus on the 3.5% down and ignore the mortgage insurance. FHA requires upfront MIP (1.75% of the loan) plus monthly MIP for the life of the loan.
If your credit is above 680 and you can hit 5% down, run the numbers on conventional too. FHA's monthly MIP can cost you more over time than a slightly higher conventional rate.
VA loans beat FHA for eligible veterans — no down payment, no monthly MIP, and typically lower rates. If you've served, VA is almost always the better call.
USDA loans also offer zero down in eligible rural zones. Yolo County has pockets that qualify — worth checking before defaulting to FHA.
West Sacramento is one of the more affordable entry points in the Greater Sacramento region. FHA loan limits for Yolo County give buyers meaningful purchasing power in this market.
The area has seen consistent demand from Sacramento-area workers priced out of the city. That competition means sellers sometimes favor conventional offers — your broker needs to know how to position an FHA offer correctly.
FHA loan limits are set by county and updated annually. Contact us for the current Yolo County limit — it directly affects your max purchase price with FHA financing.
Yes, FHA allows multi-unit properties up to four units. You must occupy one unit as your primary residence.
On loans with less than 10% down, FHA MIP stays for the life of the loan. Putting 10% or more down cuts it to 11 years.
Yes. Sellers can contribute up to 6% of the purchase price toward your closing costs. This is a real negotiating tool in slower markets.
It can. FHA uses two years of tax returns to calculate self-employed income. Consistent or growing income makes approval more straightforward.
Depends on your credit score and savings. FHA wins below 640 credit. Above that, conventional often beats FHA once you factor in lifetime MIP costs.