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An FHA loan lets many Sacramento buyers purchase a home with 3.5% down and a credit score of 580 or higher. iQRATE Mortgages is a mortgage broker led by David Ghazaryan (NMLS 1486726). This page covers Sacramento County limits, local costs, down payment and credit rules, and the steps to apply. Last updated: November 11, 2026.
Quick answer: The 2026 FHA limit for Sacramento County is $764,750 for a one-unit home. The county median sale was $549,000 in August 2026 (California Association of Realtors). So FHA covers most Sacramento homes. With 3.5% down, a $549,000 purchase needs $19,215 down. The home must be your primary residence.
Apply now or call (702) 766-3744. We will walk through your numbers with you. You can also call or text (702) 766-3744 with your price, area, and plan.
FHA limits are set by county. Sacramento County's 2026 limits come from FHFA and HUD. HUD announced the 2026 FHA limits in Mortgagee Letter 2025-23. HUD also posts the county-by-county numbers in its calendar year 2026 forward mortgage limits file. Here are the Sacramento County figures next to the conforming limits. All figures were checked November 1, 2026.
| Units | Conforming limit | FHA limit | Gap |
|---|---|---|---|
| 1 unit | $832,750 | $764,750 | $68,000 |
| 2 units | $1,066,250 | $979,000 | $87,250 |
| 3 units | $1,288,800 | $1,183,400 | $105,400 |
| 4 units | $1,601,750 | $1,470,700 | $131,050 |
The $832,750 conforming baseline also applies to Placer, El Dorado, and Yolo counties. San Joaquin and Solano counties use the same baseline. This page does not list FHA limits for the neighboring counties, so confirm the FHA figure for any county outside Sacramento. California's FHA floor in lower-cost counties is $541,287, so Sacramento County sits well above the floor.
At the $549,000 C.A.R. county median sale, an FHA buyer with 3.5% down borrows about $530,000. That is well inside the $764,750 limit. The county median sale sits $215,750 under the FHA limit. At 3.5% down, a one-unit FHA loan passes the limit at a price of about $792,487.
The FHA limit applies to the base loan amount. The upfront mortgage insurance premium is added on top of that base amount when a buyer finances it. So the limit is about the loan before the premium, not the final balance.
The price where a loan passes a limit depends on your down payment. Divide the limit by the share you borrow. The table shows the math for a one-unit Sacramento home.
| Down payment | Conforming limit passed above | FHA limit passed above |
|---|---|---|
| 3% | $858,505 | $788,402 |
| 3.5% | $862,953 | $792,487 |
| 5% | $876,579 | $805,000 |
| 10% | $925,278 | $849,722 |
| 15% | $979,706 | $899,706 |
| 20% | $1,040,938 | $955,938 |
| 25% | $1,110,333 | $1,019,667 |
A loan above the conforming limit is a jumbo loan. Most Sacramento FHA buyers never come near that line. If you are shopping above the FHA limit, see our jumbo loan page. For FHA, the 3.5% row is the one that matters, since the 3% row applies only to certain conventional loans.
The table shows the one-unit conforming limit and the price where jumbo begins at three down payment levels.
| County | 1-unit limit | Jumbo at 10% down | Jumbo at 20% down | Jumbo at 30% down |
|---|---|---|---|---|
| Sacramento | $832,750 | $925,278 | $1,040,938 | $1,189,643 |
| Placer (Roseville, Rocklin) | $832,750 | $925,278 | $1,040,938 | $1,189,643 |
| El Dorado (El Dorado Hills) | $832,750 | $925,278 | $1,040,938 | $1,189,643 |
| Yolo (Davis, West Sacramento) | $832,750 | $925,278 | $1,040,938 | $1,189,643 |
| San Joaquin (Stockton, Lodi) | $832,750 | $925,278 | $1,040,938 | $1,189,643 |
| Solano (Vacaville, Fairfield) | $832,750 | $925,278 | $1,040,938 | $1,189,643 |
| San Francisco, Alameda, Santa Clara, Contra Costa | $1,249,125 | $1,387,917 | $1,561,406 | $1,784,464 |
The table covers conforming limits only. FHA limits for Placer, El Dorado, Yolo, and the other counties are not shown on this page and can differ from the conforming numbers. We confirm the FHA limit for the exact county before you make an offer.
Sacramento costs less than the state average. Incomes are close to the state. The Census figures below use the 2020-2024 American Community Survey. The Census puts the median home value in the City of Sacramento at $506,300. That is $228,400 below California.
| Measure | Sacramento city | Sacramento County | California |
|---|---|---|---|
| People | 528,706 | 1,594,006 | 39,287,376 |
| Median home value | $506,300 | $534,200 | $734,700 |
| Median household income | $87,321 | $92,175 | $99,122 |
| Home value to income | 5.8 times | 5.8 times | 7.4 times |
| Median gross rent per month | $1,779 | $1,790 | $2,036 |
| Yearly rent as share of income | 24.4% | 23.3% | 24.6% |
| Homes lived in by owners | 51.7% | 59.0% | 55.9% |
| Homes rented | 48.3% | 41.0% | 44.1% |
| Vacant share of all homes | 5.7% | 4.6% | 7.5% |
| Seasonal and vacation homes | 1,080 | 2,459 | 357,596 |
A typical Sacramento home costs about 5.8 years of the median income. The state figure is 7.4 years. The gap between the two figures is the Census measure of how much more a typical California home costs relative to income.
About half of city homes are rented. The city has 96,750 renter homes and 103,571 owner homes. Renters can buy with CalHFA help. The Census counts 5.7% of city homes as vacant, against 7.5% for California.
Each source counts different homes. The Census asks owners what their home is worth. The California Association of Realtors tracks closed sales in the county. Zillow models a typical value. Use the one that matches your search.
| Source | Area | Period | Figure |
|---|---|---|---|
| Census median value | City of Sacramento | 2020-2024 | $506,300 |
| C.A.R. median sale | Sacramento County | August 2026 | $549,000 |
| Zillow typical value | Sacramento | September 2026 | About $574,555 |
The market pace matters too. In August 2026 the California Association of Realtors (C.A.R.) reported that Sacramento County had about three months of supply and a median of 25 days to sell. Get pre-approved before you tour so you can move when you find a home. Even the highest of the three figures, about $574,555, sits well below the $764,750 FHA limit.
| Credit score | Minimum down payment | What it means |
|---|---|---|
| 580 or higher | 3.5% | Maximum financing under the standard FHA program |
| 500 to 579 | 10% | More cash down; lender overlays may apply |
| Below 500 | Not eligible | Work on credit first, then revisit |
Many lenders set their own minimum score above FHA's. A broker can compare how different lenders treat the same file. The whole down payment can be a gift from family and some other sources. Sellers can pay up to 6% of the price toward closing costs and prepaids, within program limits. On a $549,000 purchase, 6% is $32,940. FHA is for a primary residence only. FHA guidelines expect you to occupy the home within 60 days of closing.
FHA can be used after a foreclosure, a short sale, or a bankruptcy. The exact wait depends on the event and on the lender. FHA looks at your debt-to-income ratio and your payment history instead of relying only on a score. If you have a recent credit event, tell us early. We will tell you whether FHA fits now or whether a few months of repair would help.
Here is a practical case. You have a 590 score and a couple of credit cards near their limits. Paying those cards down can raise the score and lower your monthly debt at the same time. That helps in two ways. It can lift you above a lender's own score minimum. It can also lower your debt-to-income ratio. We can show you which cards to pay first.
The table shows the down payment at several Sacramento price points. It is sample arithmetic, not a rate quote. The 3% column applies only to certain conventional loans. The 3.5% column is FHA.
| Price | 3% down | 3.5% down (FHA) | 10% down | 20% down | 25% down |
|---|---|---|---|---|---|
| $400,000 (example price) | $12,000 | $14,000 | $40,000 | $80,000 | $100,000 |
| $506,300 (Census median value) | $15,189 | $17,720 | $50,630 | $101,260 | $126,575 |
| $549,000 (county median sale) | $16,470 | $19,215 | $54,900 | $109,800 | $137,250 |
| $650,000 (example price) | $19,500 | $22,750 | $65,000 | $130,000 | $162,500 |
| $792,487 (highest FHA price at 3.5% down) | $23,775 | $27,737 | $79,249 | $158,497 | $198,122 |
Closing costs and reserves are extra. Closing costs are what it costs you to get the loan: origination, discount points, appraisal, and escrow and title. Cash to close also includes prepaids: the first year of homeowners insurance, daily interest to month-end, and an escrow deposit for taxes and insurance. Prepaids are your own bills paid ahead. They are not a cost of the loan.
For Sacramento County buyers the main prepaids are the first year of homeowners insurance, flood insurance where a lender requires it, and property-tax escrow. Your actual closing costs depend on county, price, and loan type. So we do not quote a one-size range. Every line is itemized on your Loan Estimate. See our loan policies page and the closing costs by state page for more.
They can help. A gift from an eligible donor can cover the down payment. A seller credit can cover closing costs and prepaids up to the program limit. The two work together. Say you buy at $549,000 with 3.5% down. The down payment is $19,215. A gift can cover that. A seller credit of up to $32,940 can then go toward closing costs and prepaids, if your contract allows it and the costs reach that level.
Gift funds need paperwork. The donor signs a gift letter. We trace the transfer from the donor's account to yours. Large deposits that appear in your bank statements without a source can delay approval. Tell us about any gift before you move money around.
FHA loans carry two premiums. The upfront premium is 1.75% of the base loan. Most buyers add it to the loan. The yearly premium is paid monthly. On a 30-year loan with 3.5% down, it is 0.55% up to a $726,200 base loan. Above that, it is 0.75%. Most Sacramento FHA loans fall under that line.
| Price | Base loan | Upfront MIP (1.75%) | Yearly MIP rate | Monthly MIP, year one |
|---|---|---|---|---|
| $400,000 | $386,000.00 | $6,755.00 | 0.55% | $176.92 |
| $506,300 | $488,579.50 | $8,550.14 | 0.55% | $223.93 |
| $549,000 | $529,785.00 | $9,271.24 | 0.55% | $242.82 |
| $650,000 | $627,250.00 | $10,976.88 | 0.55% | $287.49 |
| $792,487 | $764,749.95 | $13,383.12 | 0.75% | $477.97 |
With less than 10% down, the yearly premium generally lasts for the life of the loan. The premium schedule follows HUD Mortgagee Letter 2023-05. We do not publish interest rates here because they change daily and depend on your file.
Take the $549,000 county median sale with 3.5% down. The down payment is $19,215. The base loan is $529,785. The upfront premium is 1.75% of that base, or $9,271.24. If you add it to the loan, the loan balance rises by that amount. The yearly premium in year one is 0.55% of the base loan, about $2,913.82. Divided across twelve months, that is the $242.82 shown in the table.
Why does the yearly premium stay below the 0.75% rate in this example? The base loan is under $726,200, so the lower rate applies. A buyer near the top of the FHA range pays the higher rate. The last row of the table shows that. It is the highest price where the base loan stays at the $764,750 limit, and its base loan is above $726,200.
These numbers leave out interest, taxes, and homeowners insurance. They show only the mortgage insurance piece. Your Loan Estimate lists the full monthly payment once we price a real file.
It depends on your score and your cash. With a strong score and 5% or more down, conventional mortgage insurance can cost less than FHA MIP. It can also be removed later. With a lower score, higher debt, or a recent credit event, FHA is often cheaper or the only option. We price both with the same down payment and compare 5-year and 10-year cost.
| Feature | FHA | Conventional |
|---|---|---|
| Minimum down payment | 3.5% with a 580 score | As low as 3% for eligible first-time buyers |
| Credit flexibility | Scores from 500 accepted by the program | Stronger credit usually expected |
| Mortgage insurance | Upfront plus yearly MIP | Private mortgage insurance, removable with equity |
| Occupancy | Primary residence only | Primary, second home, or investment |
| Units | 1 to 4 units | Wider range of options |
The biggest structural difference is mortgage insurance. FHA loans carry MIP, and with a down payment under 10% that insurance can follow you for the life of the loan. Conventional loans use private mortgage insurance when you put down less than 20%. That insurance drops off once you build enough equity. Neither loan is better for everyone. The right choice depends on your credit, your cash, and how long you plan to own the home.
FHA allows a down payment as low as 3.5% for eligible buyers. That makes it a strong fit for first-time buyers and for anyone rebuilding financially. The trade-off is mortgage insurance that, with a low down payment, can last the life of the loan. A refinance into a conventional loan later can end that cost once you have enough equity.
FHA is for homes you will live in. If your plan does not fit that rule, other products exist. See our DSCR investor loans, our non-QM loan options, and our bank statement loans. Whether any of them fits depends on your file.
VA loans need no down payment for buyers with full entitlement. There is a one-time funding fee. It drops with a bigger down payment. Veterans with a service-connected disability rating do not pay it. If you are eligible, compare it with FHA. See our VA loan page.
Yes, if you live in one unit. That is a common way to buy a duplex and rent the other side. FHA allows up to four units. The limits in the table above rise with each unit. Rent from the other units can help you qualify. Three- and four-unit homes have extra rules, including a rental income self-sufficiency test. This approach is often called house hacking. You live in one unit and rent the others to offset your costs.
Median gross rent for Sacramento County was $1,790 a month in the 2020-2024 Census survey. Vacancy was 4.6% across the county. Those figures do not predict the rent on a given unit.
A duplex near the $1,066,250 two-unit conforming limit is a very different loan from a duplex under the $979,000 FHA two-unit limit. Because owner-occupied buyers can use FHA on up to four units, the FHA limits for two, three, and four units are much higher than the one-unit limit. FHA keeps the down payment at 3.5% on an eligible two- to four-unit purchase you live in.
Local rental rules and taxes vary, so confirm them with the City and County before you count on rental income.
Ask your agent for the rent roll and the leases. We need them to count rental income. For the other units in the building, lenders can count 75% of projected rent. Bring that question to us before you write the offer.
Federal FHA rules are the same everywhere. Local taxes and fees change your budget. These figures come from the City of Sacramento Finance Department, California Revenue and Taxation Code section 11911, the California Board of Equalization, and the Sacramento County Assessor.
The county charges $0.55 per $500, rounded up to the next $500. The city adds $2.75 per $1,000 of the full price. The City says buyer or seller may pay its tax, by agreement. If it is not paid in escrow, it falls to the buyer. The county's $1.10 is often paid by the seller. Your contract decides, so read your purchase contract. Outside any city, only the county tax applies. That is $603.90 on a $549,000 sale.
| Price | County tax | City tax | Total |
|---|---|---|---|
| $400,000 | $440.00 | $1,100.00 | $1,540.00 |
| $506,300 | $557.15 | $1,392.32 | $1,949.47 |
| $549,000 | $603.90 | $1,509.75 | $2,113.65 |
| $650,000 | $715.00 | $1,787.50 | $2,502.50 |
| $832,750 | $916.30 | $2,290.06 | $3,206.36 |
| $1,000,000 | $1,100.00 | $2,750.00 | $3,850.00 |
Prop 13 sets the base rate at 1% of your purchase price. Voter-approved bonds and fees are added on top. Your lender usually collects tax monthly in escrow. Check the exact rate on the tax bill for the parcel. The table shows first-year tax before exemptions.
| Price | 1.0% | 1.1% | 1.2% | 1.3% | Per month at 1.2% |
|---|---|---|---|---|---|
| $400,000 | $4,000 | $4,400 | $4,800 | $5,200 | $400 |
| $506,300 | $5,063 | $5,569 | $6,076 | $6,582 | $506 |
| $549,000 | $5,490 | $6,039 | $6,588 | $7,137 | $549 |
| $650,000 | $6,500 | $7,150 | $7,800 | $8,450 | $650 |
| $832,750 | $8,328 | $9,160 | $9,993 | $10,826 | $833 |
Your assessed value can rise at most 2% a year. It resets when the home sells. A new buyer pays tax on the new price, not the seller's old value. Expect a supplemental tax bill after you close. The table shows the most a $549,000 assessed value can reach under the 2% cap.
| Years after purchase | Highest assessed value |
|---|---|
| 0 | $549,000 |
| 1 | $559,980 |
| 2 | $571,180 |
| 3 | $582,603 |
| 5 | $606,140 |
| 10 | $669,228 |
This is why a buyer coming from a home with a low assessed value should plan for a bigger tax bill here. The tax follows the new price, not the old one. You can also read our mortgage broker page for Sacramento County.
Sample math only. These dollar figures are simple arithmetic from public rules and Census data. They are not an offer of credit and not a quote of rates or terms. Your down payment, payment, and costs depend on your credit, income, property, program, and lender. They appear on your Loan Estimate.
Yes. The appraisal checks value and basic condition. The home must be safe, sound, and secure. Peeling paint, missing handrails, roof problems, or broken systems can mean repairs before closing. Ask your agent about condition early.
These standards protect you as a buyer, but they can narrow your choices. A fixer-upper that needs major work may not meet them. If you love a home that needs repairs, talk to us before you write the offer. We can tell you whether a repair escrow or a different loan fits better.
A condominium project has to meet FHA rules for the loan to work. HUD keeps a searchable list of condominium projects and their approval status. You can check a project on HUD's condominium project lookup page. Check the project before you fall in love with a unit. If the project is not on the approved list, FHA financing may not be available for it.
Ask the seller's agent for the project name and address. We can then look up the status and discuss other options if the project is not approved. Conventional loans have their own condo rules, so a project that does not work for FHA may still work for another loan.
The county sets the FHA limit. We confirm the limit for the exact property before you make an offer.
A new build in Folsom, Rancho Cordova, or Natomas works differently from a resale. Plan the loan before the builder's price is final, and know which income counts before you sign with the builder.
FHA compares your monthly debts to your gross monthly income. A common benchmark is a back-end ratio near 43%. The program can allow more when other parts of the file are strong. Steady work, savings after closing, and a larger down payment all help. Automated underwriting makes the final call. Bring pay stubs, W-2s, and bank statements, and we can show you where you stand.
Here is sample arithmetic using the Sacramento County median household income of $92,175. That is $7,681.25 a month before tax. A 43% ratio on that income is about $3,302.94 a month. That figure covers all your monthly debts together, including the new housing payment and your car loans, cards, and student loans. It is a benchmark, not a rule or an approval.
Because FHA looks at both debt and credit, lenders consider your debt-to-income ratio rather than relying only on your credit history. That makes it easier for many buyers to qualify. It also means paying off a loan before you apply can help more than saving a little extra cash. Ask us before you pay off anything, so we know which debts count.
The housing payment itself counts toward your ratio. That payment includes the principal and interest, property tax, homeowners insurance, mortgage insurance, and any HOA dues.
Often yes, but the paperwork is heavier. Lenders use your tax returns to find qualifying income. Write-offs that cut your taxable income also cut the income a lender can count. Bring two years of returns and a year-to-date profit and loss statement. One borrower from another market shared a 1099 story, quoted in the reviews section below.
If your tax returns understate your income, FHA may not be the best fit. A bank statement loan uses deposits instead of tax returns. See our bank statement loan page. These loans have their own terms and are not FHA loans. We can price both paths so you see the difference.
An S-corp tax move can shrink the income a lender counts, because the lender looks at what your return shows. If you are planning a purchase, talk to your tax preparer before you change how you pay yourself. We can tell you what income a lender will use.
Timing depends on the appraisal, underwriting, and how fast documents come back. Your purchase contract sets the deadline, so ask your agent for it before you plan the loan. A written pre-approval before you shop helps your offer. A pre-approval is not a commitment to lend. Final approval needs full underwriting, an acceptable appraisal, and clear title.
Here is how the process runs for a Sacramento purchase:
The Loan Estimate and the Closing Disclosure are the documents that show your real costs. Compare them line by line. Ask us about any line you do not understand.
FHA offers streamline refinances for current FHA borrowers with less paperwork. You may also refinance into a conventional loan once you have enough equity to drop mortgage insurance. Eligibility depends on payment history, loan age, and the benefit of the new loan.
Whether a refinance pays off depends on your rate, your costs, and how long you keep the loan, so we compare them for your file.
If you do not plan to sell, a refinance can shorten your loan or end the yearly premium. If you do plan to sell soon, the upfront premium can matter more. We compare the costs for your timeline.
A broker works with many lenders, not one. Lenders apply different credit overlays and turnaround times to the same federal program. iQRATE Mortgages operates under company NMLS 1862492. David Ghazaryan and the team handle the application, documents, and updates from start to close.
We offer conventional loans with as little as 3% down for eligible first-time buyers, FHA loans with 3.5% down and a 580 score, VA loans, jumbo loans above the conforming limit, DSCR loans that qualify on rent, bank statement loans for self-employed borrowers, non-QM loans, and rate-and-term or cash-out refinances. As a broker we shop more than 100 lenders on complex files. We do not shop one bank's menu.
Our goal is to match the program to your plan. Sometimes that is FHA. Sometimes it is not. We will tell you which one fits your numbers.
For a wider view of our California work, see our California mortgage broker page and our national FHA loan page.
A denial from one lender does not always end a deal. Lenders apply different overlays to the same FHA program, so a broker can look at the file again with other lenders or a different program. Sometimes the fix is a few credit cards paid down, or a clearer view of which income counts. If a bank has told you no, ask us to look at your file.
These reviews come from borrowers in other markets, not from local Sacramento files. They show how David's team works. We have 5.0 stars from 77 reviews on Google, 5.00 on Zillow from 9 reviews, and 5.0 on Yelp from 51 reviews. They are word-for-word quotes and are not a promise about your loan.
"David was very professional and went above and beyond to help me purchase my first home. He was very knowledgeable, experienced, and thorough. Anytime I had concerns, he was always there to patiently answer all my questions. I highly recommend David if you are looking to purchase a home."
Nomi E., Zillow, FHA first-home purchase, Las Vegas, NV (other market)
"Well I’ve known David for many years. His office prepares my taxes. I had been putting off buying a home since I am a 1099 sales person. I thought mortgages were for wage earners. Never really thought I would qualify. They I mentioned to him in a conversation that I couldn’t get a home, because of the type of income I have and all these reasons. In less than 10 minutes he had me qualified. Had to pay a couple of credit cards off, that was it, I own a home now. The only regret I have is not asking him sooner. This guy knows his numbers, taxes, rules and whatever else goes into that paperwork nightmare. Needless to say, I highly recommend him."
garik 82, Zillow, self-employed purchase, Las Vegas, NV (other market)
"Very efficient and transparent service. They go above and beyond to deliver the loan closure on time even in a very tight time line. Also very resourceful and knowledgeable staff. I'll go to them again next time I need a loan."
Rita S., Yelp, Los Angeles, CA (other market)
"Buying my new home was so easy thanks to David and his team at iQRate. I was a first time homebuyer so the process was very new to me , but everyone at the office communicated so well and answered any questions or concerns I had with ease. I appreciate their patience and will definitely be using them for any future needs!"
Athena S., Yelp, first-time buyer, Summerlin, Las Vegas, NV (other market)
"David and Andrei and team were very knowledgeable and really helped in the whole process. Even though the economy is going through a rough time they were able to explain every detail and really looked out for our best interest! I would highly recommend their team as they will find a way to get it done!"
Lydia Z., Yelp, Menifee, CA (other market)
"I highly reccomend David. He treated my loan process in the same manner as he would of had if it's his own. David walked me through the process from the beginning to the end. He was always available when i called, even on weekends and holidays, especially when he had a family tragedy he still made my loan a priority and finished it on time as promised."
Yelena M., Zillow, Henderson, NV (other market)
"David was very professional and went above and beyond to make sure I understand the loan procedure. In addition, he went with me to my closing because I expressed that I would be more comfortable with him there to explain the documents to me. He was there and ensured a smooth transaction. Everything completed as expected. I would definitely recommend him to my friends and family."
Jasmin, Zillow, Las Vegas, NV (other market)
"We've been working with David's team for over 4 years now, they helped us get home loans and then refinance later when possible. Very responsive, always answer all our questions and concerns. When we had issues on our first home purchase with buyer, David quickly stepped in and had our back and helped us make the process as smooth as possible. Amazing team, super nice and just overall such a pleasure to work with. Thank you! Y'all are the best!"
Margarita G., Yelp, Las Vegas, NV (other market)
"Thank you so much David and team! You made the mortgage process so easy and were very patient with me. The process was smooth and the level of communication and professionalism was extraordinary. I will definitely recommend to family and friends for their mortgage needs as well"
Sophie G., Yelp, Las Vegas, NV (other market)
The FHA limit caps the base loan, so the useful question is how much room a given price leaves. The table below subtracts the base loan at 3.5% down from the $764,750 one-unit limit. It is sample arithmetic from the figures on this page. It is not a rate quote or an offer of credit.
| Price | Base loan at 3.5% down | Room under the $764,750 limit | Room in price terms (to $792,487) |
|---|---|---|---|
| $400,000 | $386,000 | $378,750 | $392,487 |
| $506,300 | $488,579.50 | $276,170.50 | $286,187 |
| $549,000 | $529,785 | $234,965 | $243,487 |
| $650,000 | $627,250 | $137,500 | $142,487 |
Every price in the table sits well inside the limit. A buyer at the $549,000 county median has about $243,000 of price room before the base loan reaches the cap. That room matters if you shop a little above your first target, or if a seller accepts a counter. It also matters if an appraisal comes in and you want to keep the loan under the cap.
Most buyers finance the 1.75% upfront premium. The premium is added to the base loan, so the final balance is higher than the base loan. The limit still applies to the base loan before the premium, as noted above. The table shows the totals.
| Price | Base loan | Upfront MIP (1.75%) | Balance with MIP financed |
|---|---|---|---|
| $400,000 | $386,000.00 | $6,755.00 | $392,755.00 |
| $506,300 | $488,579.50 | $8,550.14 | $497,129.64 |
| $549,000 | $529,785.00 | $9,271.24 | $539,056.24 |
| $650,000 | $627,250.00 | $10,976.88 | $638,226.88 |
| $792,487 | $764,749.95 | $13,383.12 | $778,133.07 |
If you pay the upfront premium in cash instead, the balance stays at the base loan, but you need more cash at closing. Most buyers who are already stretching for the down payment choose to finance it. We can show you both versions side by side when we price your file.
A down payment is easier to judge next to income. The Sacramento County median household income in the 2020-2024 Census survey is $92,175. The table compares the 3.5% down payment at each price with that figure. The comparison uses a median income only to give you a sense of scale. Your own income and savings decide what you can do.
| Price | 3.5% down payment | Share of $92,175 yearly income | Seller credit cap at 6% |
|---|---|---|---|
| $400,000 | $14,000 | About 15.2% | $24,000 |
| $506,300 | $17,720.50 | About 19.2% | $30,378 |
| $549,000 | $19,215 | About 20.8% | $32,940 |
| $650,000 | $22,750 | About 24.7% | $39,000 |
The last column shows the most a seller can contribute toward closing costs and prepaids at 6% of the price, within program limits. Whether a seller agrees is a matter for your contract. The down payment is a separate piece, funded from your savings or from an eligible gift.
Interest rates change daily, so this page does not show a full payment. You can still add up the two pieces that follow from the numbers above. The table adds the first-year monthly mortgage insurance to monthly property tax at 1.2% of the price. It leaves out principal, interest, homeowners insurance, and any HOA dues.
| Price | Monthly MIP, year one | Monthly property tax at 1.2% | Two pieces together |
|---|---|---|---|
| $400,000 | $176.92 | $400 | $576.92 |
| $506,300 | $223.93 | $506 | $729.93 |
| $549,000 | $242.82 | $549 | $791.82 |
| $650,000 | $287.49 | $650 | $937.49 |
Your Loan Estimate lists the full monthly payment once we price a real file. Use this table only to see how much of the payment comes before the loan itself. The tax figure uses the 1.2% middle rate from the property tax table above, and your parcel may differ.
FHA limits rise with the number of units. The same 3.5% down arithmetic gives the highest price for each. The table divides each FHA limit by 0.965, the share you borrow when you put 3.5% down. It sets that price next to the matching conforming limit.
| Units | FHA limit | Highest price at 3.5% down | Conforming limit |
|---|---|---|---|
| 1 unit | $764,750 | $792,487 | $832,750 |
| 2 units | $979,000 | $1,014,508 | $1,066,250 |
| 3 units | $1,183,400 | $1,226,321 | $1,288,800 |
| 4 units | $1,470,700 | $1,524,041 | $1,601,750 |
These are ceilings, not targets. A buyer who wants a duplex or fourplex also has to meet the owner-occupancy rule, the credit rules, and the extra tests that apply to three- and four-unit homes. A price below the ceiling can still fail if the rental income, the appraisal, or the debt ratio does not work. We look at each piece before you write an offer.
People earn more and less than the county median, so the table below shows the same 43% arithmetic at a few round incomes. The incomes are examples only. They are not a prediction of what you will qualify for. All of your monthly debts count against the total, including the new housing payment.
| Yearly income | Monthly income before tax | 43% of monthly income |
|---|---|---|
| $75,000 | $6,250.00 | $2,687.50 |
| $92,175 (county median) | $7,681.25 | $3,302.94 |
| $100,000 | $8,333.33 | $3,583.33 |
| $120,000 | $10,000.00 | $4,300.00 |
Say a buyer earns $100,000 and carries a $400 car payment and $150 in minimum card payments. That leaves about $3,033 of the 43% total for the new housing payment. The housing payment includes principal, interest, property tax, homeowners insurance, mortgage insurance, and HOA dues. Paying off a card or a car loan before you apply can raise the room for housing. That is why we ask about debts first.
Automated underwriting makes the final call, and it looks at more than the ratio. Savings after closing, steady employment, and credit history all count. A file a little over the benchmark can still work when other parts are strong, and a file under it can still be turned down if something else is weak.
A bigger down payment lowers the base loan and the premium that is calculated on it. The table keeps the price at the $549,000 county median and changes only the down payment. The 3% row is a conventional option for certain eligible buyers. The 3.5% row is the FHA minimum with a 580 score.
| Down payment | Cash down | Loan amount | Share of price borrowed |
|---|---|---|---|
| 3% | $16,470 | $532,530 | 97% |
| 3.5% (FHA) | $19,215 | $529,785 | 96.5% |
| 5% | $27,450 | $521,550 | 95% |
| 10% | $54,900 | $494,100 | 90% |
| 20% | $109,800 | $439,200 | 80% |
The gap between the 3% and 3.5% rows is only $2,745 of cash. That small difference is why the choice between FHA and conventional usually turns on credit, mortgage insurance cost, and how long you plan to keep the loan, not on the down payment alone. Moving from 3.5% to 10% down takes another $35,685 of cash and cuts the loan by $35,685. Whether that trade is worth it depends on your savings and your other goals, such as keeping cash in reserve after closing.
Closing costs and prepaids come out of your cash before you get the keys. A new home also brings repairs, moving costs, and furniture. A buyer who puts every dollar into the down payment can feel exposed in the first months. Underwriters also look at savings left after closing, because it shows you can handle the payment if income dips. Ask us how much cushion makes sense for your file before you decide how much to put down.
Lenders must give you a Loan Estimate soon after you apply. It lists the loan amount, rate, monthly payment, closing costs, and cash to close. Compare the Loan Estimates from different lenders line by line, not just the rate. Look at the loan amount to confirm that the upfront premium is shown the way you expect. Check the monthly payment for mortgage insurance, taxes, and homeowners insurance. Then look at the cash to close and see whether it matches what you planned to bring.
If a number does not match what you were told, ask about it before you sign anything. A broker can explain each line and help you compare offers. The numbers on this page are sample arithmetic. Your Loan Estimate is the document that shows your real costs.
You do not need a perfect file before you call. A short list helps us give you real answers instead of general ones.
With that list we can tell you whether FHA fits now, what the down payment and mortgage insurance look like at your price, and whether a few months of preparation would help. If FHA does not fit your plan, we will say so and point you to a better program.
Documents you will need include recent pay stubs, tax returns, bank statements, and your credit report. These verify your income and show you have funds for the 3.5% down payment. If you are not sure where to begin, you can get pre-approved online, or call (702) 766-3744 and we will talk it through.
Ready for the next step? Apply now, or call (702) 766-3744 and we will review your numbers with you.
No. FHA is not limited to first-time buyers. Repeat buyers can use it too, as long as the home will be their primary residence and they meet the credit, income, and property requirements.
FHA allows 3.5% down with a 580 score and 10% down with a score from 500 to 579. Individual lenders may require higher scores.
No. FHA loans are for owner-occupied primary residences. For rental properties, ask about DSCR loans.
Yes. FHA loans include an upfront premium of 1.75% of the base loan amount plus a yearly premium paid monthly.
Yes, from an eligible donor with proper documentation.
The 2026 one-unit FHA limit is $764,750. Two units are $979,000, three are $1,183,400, and four are $1,470,700. This page does not list FHA limits for Placer, El Dorado, Yolo, or other nearby counties, so we confirm the limit for each property.
Yes, and it is a good idea. Pre-approval is an evaluation of your file and is not a commitment to lend. It shows sellers you are serious and tells you your realistic budget. Apply now to begin.
It is $2,113.65. The county part is $603.90 and the city part is $1,509.75. Outside any city, only the county part applies. The contract decides who pays.
With 3.5% down, upfront MIP is $9,271.24. Yearly MIP is 0.55% because the base loan is under $726,200. That is about $242.82 a month in the first year.
No. The Census says $506,300 for the city, C.A.R. says $549,000 for the county, and Zillow says about $574,555. Each source counts different homes.
Plan on recent pay stubs and W-2s, or two years of tax returns if you are self-employed. Your lender confirms which income counts for your file.
It depends on the appraisal, underwriting, how fast documents come back, and the deadline in your purchase contract. We cannot promise a closing date for your file.
The conforming limit for four units is $1,601,750 for Sacramento County. The FHA limit for four units is $1,470,700.
Sometimes. The condominium project has to meet FHA rules. You can check a project on HUD's condominium project lookup page, and we can help with that search.
iQRATE Mortgages, NMLS 1862492. David Ghazaryan, NMLS 1486726. Call (702) 766-3744 or apply now. You can also get pre-approved online.
Equal Housing Opportunity. This page is general information, not a commitment to lend. Loan approval depends on credit, income, assets, property, and underwriting review. Program terms, loan limits, and mortgage insurance rules are set by FHA and by individual lenders and can change. Dollar figures on this page are sample arithmetic from public rules and Census data, not rate quotes or offers. All loans are subject to credit, property, and underwriting approval. Local facts on this page come from public sources and are not legal or tax advice. Sources: FHFA 2026 conforming limits; HUD Mortgagee Letters 2025-23 and 2023-05; HUD calendar year 2026 forward limits file; HUD Single Family Housing Policy Handbook 4000.1; U.S. Census Bureau American Community Survey 2020-2024, tables B01003, B19013, B25002, B25003, B25004, B25064 and B25077, as shown in the Census Reporter profiles for the city, the county, and the state; California Revenue and Taxation Code section 11911; Sacramento County Assessor; California Association of Realtors county sales and price activity; Zillow typical home value, September 2026; City of Sacramento Finance; California Board of Equalization. Checked November 1, 2026.
