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FHA financing, Sacramento County 2026
Sacramento FHA Loans
A Sacramento FHA loan fits this market well. The 2026 county limit of $764,750 is far above the city’s $508,000 median, credit rules are forgiving, and the Sacramento Housing and Redevelopment Agency pairs its first-time buyer loans with FHA first mortgages. What takes planning is the mortgage insurance, and in Natomas, the flood policy.
Check FHA and SHRA fit Sacramento FHA rates
Sacramento FHA Loan Limits Leave Plenty of Room
HUD set Sacramento County’s one-unit FHA limit at $764,750 for case numbers assigned in 2026. At the 3.5% minimum down payment that supports a price up to about $792,000. With Redfin’s September 2026 city median near $508,000 and the county median about $543,783, almost the whole market fits. East Sacramento and Land Park, where medians ran near $799,000 and $807,000, are where prices push past it; a Land Park buyer at that median would need a bit over 5% down to keep the base loan under the limit.
Where FHA does the most work is the lower and middle tiers. A score of 580 or higher qualifies for 3.5% down, 500 to 579 needs 10% down, and FHA pricing moves much less with score than conventional pricing does, so a buyer in the 600s often sees a better rate here.
Sacramento Market Insights for First-Time FHA Buyers
Sources: Redfin (September 2026); HUD Mortgagee Letter 2025-23; U.S. Census Bureau ACS 2020-2024.
At the city median, 3.5% down is about $17,800 before closing costs. Nearly half of Sacramento’s homes are rented, and a renter making a first move can compare a mortgage payment against rent that the Census survey put at a $1,779 median. Homes were selling in about 25 days near list price in September 2026, which leaves enough time to line up assistance before an offer if you start early.
SHRA Help to Pair With a Sacramento FHA Loan
The Sacramento Housing and Redevelopment Agency posted 2026 program sheets in June 2026 for two deferred down payment loans. Both serve buyers at or below 80% of area median income, and PLHA’s sheet lists FHA among the allowed first mortgages; confirm the first-mortgage rules for CalHome with the lender:
- PLHA First-Time Homebuyer Mortgage Assistance: listed as open. 20% of the purchase price, from $10,000 up to $50,000, as a deferred loan at 1% simple interest, due when you sell, transfer or stop living in the home. Income limits are $73,600 for one person and $105,100 for four. It covers purchases in the City or County of Sacramento by buyers who have not owned in three years, with a 30-year fixed FHA, conventional or CalHFA first mortgage. Because the amount is 20% of price, the $50,000 cap applies at any price above $250,000.
- CalHome First-Time Homebuyer Mortgage Assistance: listed as available. 20% of the price, from $10,000 up to $40,000, deferred at 3% simple interest, for single-family homes in qualified census tracts of the city or unincorporated county. The price may not exceed the county median single-family price.
- Sacramento Mortgage Credit Certificate: closed. SHRA says it cannot assist until further notice because funds are depleted.
CalHFA programs can stack with or replace SHRA help. MyHome Assistance lends up to 3.5% of the price, deferred, behind a CalHFA FHA first; CalPLUS FHA loans pair with the Zero Interest Program for closing costs, and CalPLUS Access FHA loans with MyAccess. Dream For All is drawing based, and its 2026 portal closed March 16. Program funding changes during the year, so confirm status the week you apply.
Today’s FHA and Conventional Rates for Sacramento County
Priced for Sacramento County, October 27, 2026
0.187 points See every option 30-year fixed 7.125% 7.192% APR P&I $4,312/mo on $640,000
0.125 points See every option 15-year fixed 6.375% 6.436% APR P&I $5,531/mo on $640,000
$800 lender credit See every option 30-year VA 6.750% 6.794% APR P&I $4,151/mo on $640,000
$506 lender credit See every option 30-year jumbo 8.125% 8.209% APR P&I $8,910/mo on $1,200,000
0.322 points See every option
Par pricing for a single-family primary residence in Sacramento County: 20% down, 30-year term unless noted, 780+ credit, 30-day lock, escrows included. Payments are principal and interest only; taxes and insurance add to them. Rates change through the day and are not a commitment to lend. Price your own Sacramento scenario, no credit pull.
Neighborhoods Where Sacramento FHA Buyers Shop
Oak Park
Older bungalows south of Broadway, long an entry-level area and now drawing remodelers. Pre-war houses mean the FHA appraiser’s safety list can be longer, so inspect early.
Del Paso Heights and North Sacramento
The lower price tier, with modest older homes. Buyers here may combine FHA or a CalHFA first with PLHA help; CalHome is limited to qualified census tracts, so check the address.
Meadowview
1950s to 1970s tract homes in south Sacramento at lower prices, a natural first purchase for buyers stretching a 3.5% down payment.
Tahoe Park
Mid-century single-family homes at middle prices. At 640 to 700 scores, FHA and conventional can land close, so price both.
Natomas
Newer tracts from the 1990s on, often with fewer appraisal repair items, but every FHA loan here carries a required flood policy.
Midtown and Downtown Condos
Condos and lofts near the state offices need an FHA-approved project or a single-unit approval before an FHA offer makes sense.
What FHA Mortgage Insurance Costs at $450,000
FHA charges an upfront premium of 1.75% of the base loan, normally financed into the loan, and an annual premium paid monthly. On a 30-year loan with a base up to $726,200 the annual rate is 0.55% at the minimum down payment and 0.50% with 5% or more down; above $726,200 it is 0.75% or 0.70%. At 3.5% down, that higher tier starts at a price of about $752,500, which only the top of the Sacramento market reaches. The bigger lever is duration: with 10% or more down the annual premium ends after 11 years, otherwise it stays until the loan ends, so the usual way out is a later switch to a conventional loan.
| $450,000 purchase | Base loan | Upfront MIP, 1.75% | Monthly MIP | MIP lasts |
|---|---|---|---|---|
| 3.5% down | $434,250 | $7,599 | $199 (0.55%/yr) | Life of the loan |
| 5% down | $427,500 | $7,481 | $178 (0.50%/yr) | Life of the loan |
| 10% down | $405,000 | $7,088 | $169 (0.50%/yr) | 11 years |
Annual MIP for case numbers endorsed on or after March 20, 2023 (ML 2023-05), unchanged through October 2026.
Is Conventional Cheaper for Your Score?
With a top score, a 5% down conventional loan tends to come out ahead, since its mortgage insurance is inexpensive and drops off at 20% equity. At 660 the comparison often tips the other way. This runs today’s Sacramento County rates on a $450,000 purchase at a 660 score, the kind of side-by-side that decides whether a Sacramento FHA loan is the right call.
| $450,000 purchase, 660 credit | Conventional, 5% down | FHA, 3.5% down |
|---|---|---|
| Down payment | $22,500 | $15,750 |
| Loan amount | $427,500 | $441,849 with 1.75% upfront MIP |
| Today’s rate (APR) | 8.125% (8.271%) | 7.000% (7.073%) |
| Principal and interest | $3,174/mo | $2,940/mo |
| Mortgage insurance | $456/mo PMI | $199/mo MIP |
| Before taxes and insurance | $3,630/mo | $3,139/mo |
| Mortgage insurance ends | At 20% equity (can be removed) | Life of the loan with under 10% down |
Before property tax, homeowners insurance and any flood policy. Rates are today’s county par prices with APR and change daily.
Duplexes and Fourplexes on FHA
An owner-occupant can buy a building of up to four units on FHA with the same 3.5% minimum. Midtown and the older central neighborhoods include converted flats and small multi-unit buildings, and rent from the other units can help you qualify. Know the city’s Tenant Protection Program first: it covers multi-unit buildings built before February 1, 1995, but covers duplexes only when the owner does not live in one, so an owner-occupied triplex or fourplex of that age may still be covered.
| Sacramento County, 2026 | FHA loan limit | Highest price at 3.5% down |
|---|---|---|
| One unit (house, condo, townhome) | $764,750 | $792,400 |
| Two units | $979,175 | $1,014,600 |
| Three units | $1,183,550 | $1,226,400 |
| Four units | $1,470,950 | $1,524,300 |
FHA forward mortgage limits for Sacramento County, 2026.
Sacramento FHA Loan Requirements
- Score and down payment: 3.5% down at 580 or higher, 10% down from 500 to 579. Many lenders set higher floors, which is why shopping helps.
- Occupancy: the home must be your primary residence, including a two to four unit building.
- Loan size: the base loan stays within the county limit for the unit count.
- Property condition: FHA appraisers flag peeling paint, missing handrails, worn roofs and older electrical, which can come up in older Oak Park and Curtis Park homes.
- Flood insurance: FHA is federally backed, so homes in a Special Flood Hazard Area need a policy. All of Natomas is FEMA Zone A99 while its levee project is completed, and other parts of the city fall in Zones A, AE, AH or AO. The premium counts in your debt-to-income ratio.
- Condos: an FHA-approved project or a single-unit approval.
- Credit scoring from 2027: lenders may use FICO 10T and VantageScore 4.0 alongside Classic FICO for case numbers assigned on or after January 1, 2027, with the same thresholds.
How a Sacramento FHA Loan Reaches Closing
- Check program fitPrice range, score range, household size and income. Mike compares FHA, conventional and CalHFA.
- Reserve the helpConfirm PLHA or CalHome status and a participating lender before you start touring.
- Pre-approval and offerDocuments reviewed up front; the offer names FHA financing and any assistance.
- Appraisal and flood checkA Sacramento County appraiser notes required repairs, and the flood zone is confirmed.
- Sign and fundE-sign or mobile notary; local escrow records the deed and pays the transfer taxes.
Veterans should price a Sacramento VA loan too, since it has no monthly mortgage insurance. Compare programs on the Sacramento mortgage rates page or read the statewide FHA loan guide.
Sacramento First-Time Buyer FHA Questions
What is the 2026 FHA loan limit in Sacramento County?
$764,750 for a one-unit home, for case numbers assigned in 2026. Two units go to $979,175 and four units to $1,470,950. At 3.5% down the one-unit limit supports a purchase of about $792,000, which covers most of the city; homes at or above the East Sacramento and Land Park medians need more than 3.5% down.
Can I combine SHRA PLHA assistance with a Sacramento FHA loan?
Yes. PLHA allows an FHA, conventional or CalHFA 30-year fixed first mortgage. It lends 20% of the price, from $10,000 up to $50,000, deferred at 1% simple interest, to first-time buyers at or below 80% of area median income ($105,100 for four). SHRA’s June 2026 sheet listed it as open; confirm funding before you offer.
Is the Sacramento Mortgage Credit Certificate available in 2026?
No. SHRA says it cannot assist with the Mortgage Credit Certificate until further notice because funds are depleted. PLHA and CalHome were listed as available in June 2026, and CalHFA’s MyHome can add up to 3.5% of the price with a CalHFA FHA first.
Does a Sacramento FHA loan in Natomas need flood insurance?
Yes. FHA loans are federally backed, and Natomas is FEMA Zone A99, a Special Flood Hazard Area, so a flood policy is required while the levee work is unfinished. Get a quote before choosing a price range so the payment you qualify for is accurate.
How long does FHA mortgage insurance last?
Start with 10% or more down and the monthly premium stops after 11 years; start with less and it continues until the loan is paid off or refinanced, which is why owners often move to conventional financing near 20% equity. The 1.75% upfront premium is charged once and normally financed.
Will an older Oak Park or Curtis Park house pass an FHA appraisal?
Many do, but the appraiser checks health and safety items such as peeling paint, handrails, roofs and wiring. Repairs are usually negotiated with the seller before closing, so have your inspector look for those items first.
Can I use a Sacramento FHA loan on a Midtown condo?
Only if the project is FHA-approved or the unit gets a single-unit approval. Send Mike the building name before you write an offer so approval can be checked.
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