Can You Buy a Home While Paying Off Student Loans?
For many doctors, nurses, and other healthcare professionals, purchasing a home is an important financial goal. However, after years of education and professional training, student loan payments can make the homebuying process feel more complicated. You may have a strong income and a stable career but still wonder whether your outstanding student loans will prevent you from qualifying for a mortgage. The good news is that you can qualify for a mortgage while carrying student loan debt. Student loans do not automatically disqualify you from buying a home. Mortgage lenders evaluate your complete financial picture, including your income, credit history, monthly debt obligations, available savings, and the proposed mortgage payment. For healthcare professionals in Sacramento and throughout Northern California, understanding how lenders calculate student loan payments can help you determine your options and prepare for homeownership. How Does Student Loan Debt Affect Mortgage Qualification? One of the most important factors mortgage lenders evaluate is your debt-to-income ratio, commonly called DTI. This calculation compares your qualifying monthly debt payments with your gross monthly income before taxes and other deductions. Your monthly obligations may include student loans, car payments, credit card minimum payments, and the estimated housing payment for the home you want to purchase. For example, imagine a healthcare professional earning $12,000 per month before taxes. They have a $600 monthly student loan payment, a $450 car payment, and $150 in required credit card payments. Their existing monthly debts total $1,200 before adding the proposed mortgage payment. In this example, those existing debts represent 10% of their gross monthly income. The lender would then evaluate how the proposed housing payment affects the overall DTI ratio, along with the applicable loan program’s requirements. A higher income can help offset the effect of student loan payments, but approval is not based on income alone. Credit history, down payment, cash reserves, employment, and the overall loan profile also matter. How Mortgage Lenders Calculate Student Loan Payments The way your student loans are reported and repaid can affect your mortgage qualification. The applicable calculation depends on the loan program, your repayment status, and the documentation available. 1. Student Loans With a Required Monthly Payment If your credit report shows a monthly student loan payment, the lender may be able to use that amount when calculating your qualifying debts. If the reported amount is incorrect, current student loan documentation may help establish the correct payment under applicable guidelines. This can be particularly helpful for healthcare professionals whose actual required payments differ from older credit report information. 2. Income-Driven Repayment Plans Some borrowers make payments based on their income rather than a standard repayment schedule. Depending on the mortgage program and the documentation provided, the lender may be able to use the verified required payment. Under current Fannie Mae conventional loan guidelines, a documented $0 payment under an eligible income-driven repayment plan may be used as a $0 monthly qualifying obligation. Other loan programs may apply different rules, so your repayment plan should be reviewed before determining your borrowing capacity. 3. Deferred Loans or Loans in Forbearance If your student loans are deferred or in forbearance, do not assume that no current payment means the debt will be ignored during mortgage qualification. For conventional loans following Fannie Mae guidelines, the lender may use a payment calculated at 1% of the outstanding balance or a fully amortizing payment based on documented repayment terms in applicable circumstances. Other programs may have different calculation requirements. For example, a $200,000 student loan balance could produce a qualifying payment of $2,000 per month under a 1% calculation. That does not mean every lender or loan program will use that amount, but it illustrates why reviewing deferred student loans early is important. The best approach is to have your loan officer review your current student loan statement, repayment status, and applicable underwriting guidelines before estimating how much home you can afford. Are Physician Mortgage Loans an Option for Doctors? Physician mortgage loans, sometimes called doctor loans, are specialized mortgage programs offered by certain lenders to eligible medical professionals. These programs are designed around the financial circumstances that some physicians experience, including substantial student loan balances, high earning potential, and the transition from residency or fellowship into practice. Depending on the lender and program, potential features may include: Availability and eligibility vary by lender. Some programs are limited to specific medical degrees, licenses, or employment arrangements. Borrowers should also compare interest rates, closing costs, down payment requirements, and any mortgage insurance or reserve requirements. A physician mortgage loan is not automatically the best choice for every doctor. Comparing it with conventional financing and other available programs can help you determine which option fits your financial goals. Can Nurses Qualify for a Mortgage With Student Loan Debt? Absolutely. Registered nurses, nurse practitioners, physician assistants, and other eligible healthcare professionals may qualify for conventional, FHA, VA, or other mortgage programs, depending on their individual circumstances. However, nurses should not assume that every physician mortgage program is available to them. Many doctor loan programs have specific eligibility requirements, and some exclude nursing professionals. Even without a specialized physician loan, nurses may have several financing options. Lenders can evaluate eligible base pay, qualifying overtime, shift differentials, bonuses, and other employment income when supported by the applicable documentation and underwriting requirements. For nurses who work night shifts, overtime, or multiple healthcare positions, properly documenting income can be just as important as understanding student loan payments. What If You Are a Resident, Fellow, or Recently Hired Healthcare Professional? Healthcare professionals do not always follow a traditional career path. A physician may spend several years in residency before moving into a higher-paying position, while a nurse may recently have changed employers or started a new specialty. These circumstances do not necessarily prevent mortgage approval. Depending on the loan program, a lender may be able to evaluate a new employment contract, a documented future start date, or other acceptable evidence of qualifying income. The key is understanding what the lender can document and
Why 2026 Could Be a Good Time to Buy a Home in Sacramento
If you’ve been thinking about buying a home but have concerns about today’s mortgage rates, you’re not alone. It is completely understandable to want to feel confident about your payment and make sure you’re making a smart financial decision. The good news is that today’s market may offer opportunities that buyers didn’t have when competition was much higher. Instead of focusing only on the interest rate, it’s important to look at the entire transaction and how the different pieces can work together to create a payment and purchase that fits your goals. One of the biggest advantages for buyers right now can be increased negotiating power. Depending on the home and local market conditions, sellers may be more willing to negotiate on the purchase price, contribute toward closing costs, offer credits, or help with an interest rate buydown. These concessions can potentially reduce your upfront costs or help make your monthly payment more comfortable. Every transaction is different, but having a knowledgeable real estate agent and mortgage team working together can help you identify opportunities that may improve the overall deal. It’s also important to remember that buying a home is about much more than today’s interest rate. The purchase price, seller contributions, loan program, down payment, closing costs, and monthly payment all play a role in determining whether a home is a good fit for you. While nobody can predict exactly where mortgage rates or home prices will go in the future, you don’t necessarily have to wait for the “perfect” rate to make a smart purchase. The goal is to find a home and financing strategy that makes sense for your current financial situation and long-term plans. At The Harris Team, our goal is to help you understand your options without pressure. We’ll help you look at the numbers, explore available loan programs, and work alongside your real estate agent to help you make the strongest offer possible. If you’ve been waiting on the sidelines because of mortgage rates, it may be worth taking another look at what is available today. You may find that the combination of negotiating power, seller incentives, and the right financing strategy creates a better opportunity than you expected.
Things to do in Sacramento this week
Looking for the best things to do in Sacramento this week? From September 30 through October 6, 2026, Sacramento and the surrounding communities are packed with concerts, festivals, sporting events, family-friendly activities, fall events, farmers markets, and local entertainment. Whether you’re looking for something to do in Downtown Sacramento, Old Sacramento, Folsom, Elk Grove, or the greater Sacramento area, we’ve put together a list of some of the week’s most notable Sacramento events and activities to help you make the most of your week. Whats happening around Sacramento? AFTERSHOCK FESTIVAL October 1–4 | Discovery Park One of Sacramento’s biggest music weekends is back. Aftershock brings four days of live music to Discovery Park with performances across multiple stages. Perfect for: Music lovers, friends, and a Sacramento weekend outing. TYLER CHILDERS September 30 | Golden 1 Center Tyler Childers brings his Snipe Hunt Tour to Sacramento on Wednesday night. When: 7:30 PMWhere: Golden 1 Center SACRAMENTO REPUBLIC FC September 30 | Heart Health Park Catch Sacramento Republic FC as they take on the Las Vegas Lights FC. Tickets When: 7:00 PMWhere: Heart Health Park at Cal Expo SACRAMENTO GREEK FESTIVAL October 2–4 | Sacramento Enjoy Greek food, music, dancing, and family-friendly cultural activities during Sacramento’s annual Greek Festival. Tickets Perfect for: Families, food lovers, and a fun weekend activity. THOMAS RHETT October 3 | Golden 1 Center Country music fans can catch Thomas Rhett’s Soundtrack to Life Tour on Saturday night. When: 7:30 PMWhere: Golden 1 Center FAMILY-FRIENDLY FALL ACTIVITIES PUMPKIN PATCH EXPRESS October 3 | River Fox Train Take a ride on the River Fox Train and enjoy a seasonal pumpkin-themed experience. WORLD ANIMAL DAY October 4 | Sacramento City Zoo Sanctuary A fun opportunity for families to celebrate and learn more about animals and conservation. Tickets COMMUNITY & LOCAL EVENTS FIRST FRIDAY WAREHOUSE ARTISTS’ LOFTS October 2 Explore local art, artists, and Sacramento’s creative community during First Friday. More Information FARMERS MARKETS October 3–4 Several local farmers markets will be happening throughout the Sacramento area, including markets in Downtown Sacramento, Rancho Cordova, Historic Folsom, and Elk Grove, Sacramento Market Rancho Cordova Market Folsom Market Elk Grove Market LOOKING FOR SOMETHING SPOOKY? SACRAMENTO SCREAM PARK Running through November 7 If you’re ready to get into the Halloween spirit, Sacramento Scream Park is officially underway. Ticket MOVIES UNDER THE STARS October 1–2 | Old Sacramento Enjoy an outdoor movie experience in the heart of Old Sacramento. MORE TO EXPLORE IN SACRAMENTO Sacramento is full of great places to go, things to do, and local experiences to enjoy — and there’s always something new happening around town. Whether you’re planning a weekend with the family, meeting friends for a night out, or simply looking for something fun to do in Sacramento this week, we hope this guide helps you find something worth adding to your calendar. As a local Sacramento mortgage team, we love being part of this community and sharing the events, businesses, and experiences that make the Sacramento area such a great place to call home. From Downtown Sacramento and Midtown to Elk Grove, Roseville, Folsom, and beyond, there is always something happening nearby. Have a Sacramento event, local business, or community activity we should feature? We’d love to hear about it! THE HARRIS TEAM Your Local Sacramento Mortgage Team Whether you’re buying your first home, moving to a new home, refinancing, or simply curious about the Sacramento real estate market, we’re here to help make the process easier. Thinking about making a move in Sacramento? Let’s start the conversation.
Worried About Mortgage Rates? Why Waiting Could Cost California Homebuyers More
Mortgage rates are one of the first things homebuyers look at when deciding whether it is the right time to purchase a home. When rates feel higher than they would like, it is easy to think, “I’ll just wait until rates come down.” But there is something important California homebuyers should consider: a lower mortgage rate in the future does not necessarily mean buying a home will be cheaper. If mortgage rates decrease, more buyers may enter the market. Increased demand can create more competition, fewer available homes, multiple-offer situations, and potentially higher home prices. That means waiting for a lower rate could help with your interest rate—but you could end up paying more for the home itself. Should You Wait for Mortgage Rates to Drop? This is one of the most common questions we hear from homebuyers. The truth is that nobody knows exactly when mortgage rates will move significantly lower, how quickly they will change, or what home prices will look like when they do. Instead of trying to perfectly time the mortgage market, buyers should look at the entire financial picture. Your mortgage rate is important, but it is only one part of the equation. The purchase price of the home, your down payment, monthly payment, property taxes, insurance, loan program, and your long-term plans all matter when determining whether purchasing makes sense. What Happens If Mortgage Rates Fall? Imagine you find a home you love today for $600,000. You decide to wait because you believe mortgage rates will be lower in the future. If rates eventually fall, you might expect to purchase that same home for $600,000 at a lower interest rate. But what if more buyers enter the market at the same time? Suddenly, instead of being one of a few interested buyers, you could be competing against several other buyers. That increased demand could push home prices higher. The home that was $600,000 today could potentially cost more in the future. In that situation, you may get the lower interest rate you were waiting for—but you could also be paying a higher purchase price. This is why the decision to buy a home should not be based on the mortgage rate alone. You Can Potentially Refinance Later One of the biggest misconceptions about buying a home today is that your initial mortgage rate has to be the rate you keep forever. It doesn’t necessarily have to be. If you purchase a home and mortgage rates become more favorable in the future, refinancing may be an option depending on your financial situation, loan program, home equity, closing costs, and the rates available at that time. Of course, refinancing is not guaranteed to make financial sense. There are costs involved, and future rates are impossible to predict. But the important point is that buying a home is not necessarily a one-time decision about interest rates. You are purchasing the home first, while your financing can potentially be reviewed later. The Cost of Waiting Is More Than Just Interest When buyers think about waiting, they often focus exclusively on the potential savings from a lower mortgage rate. But there can be other costs associated with waiting. While you’re waiting, you may continue paying rent. Home prices could change. Your preferred neighborhoods could become more competitive. The home you would have purchased could sell to another buyer. And if rates fall enough to bring more buyers into the market, you may have to compete against people who were also waiting. None of these outcomes are guaranteed. The housing market can move in different directions, and every buyer’s situation is different. That is why the goal should not be to predict exactly what the market will do. The goal should be to determine whether purchasing a home makes sense for you today. Sacramento Homebuyers Have More Than One Strategy For buyers in Sacramento and throughout California, there may be different ways to structure a mortgage depending on your financial situation and goals. A conventional loan may make sense for one buyer, while an FHA, VA, or another loan program could be more appropriate for someone else. There may also be opportunities to negotiate with sellers depending on the property and market conditions. In some transactions, seller concessions can potentially be used toward certain allowable closing costs or other expenses. The right strategy depends on the individual buyer. That’s why getting pre-approved and talking through your options before making an offer can be so valuable. A pre-approval isn’t just about finding out how much you can borrow. It can help you understand what your estimated monthly payment could look like and what loan options may be available to you. Don’t Try to Predict the Perfect Time to Buy There will always be a reason to wait. When rates are higher, buyers wait for rates to come down. When prices are rising, buyers wait for prices to fall. When inventory is limited, buyers wait for more homes to become available. And when the market becomes competitive, buyers wait for things to calm down. The problem is that there is no perfect market. Instead of asking: “Are mortgage rates low enough?” Consider asking: “Can I comfortably afford the payment, and does buying a home make sense for my financial goals?” That is a much more useful question. What If Rates Come Down After You Buy? This is where having a long-term perspective can help. If you purchase a home today and rates decline significantly in the future, you can speak with your mortgage professional about whether refinancing makes sense. If rates don’t decline, you still own the home you purchased. And if home values increase over time, you may build equity through both your mortgage payments and changes in the property’s value. Again, none of these outcomes are guaranteed. Real estate markets fluctuate, and homeowners should make decisions based on their individual circumstances rather than assuming prices or rates will move in a particular direction. So, Is Now a Good Time
Can You Buy a House in Sacramento With an FHA Loan? A 2026 Guide
If you are thinking about buying a home in Sacramento but are concerned about your down payment, credit score, or qualifying for a mortgage, an FHA loan may be worth considering. FHA loans are one of the most popular mortgage options for buyers who want a lower down payment and more flexible credit guidelines. For many Sacramento buyers, an FHA loan can make homeownership more accessible without requiring a large amount of money upfront. But is an FHA loan right for you in 2026? In this guide, we’ll explain how FHA loans work in Sacramento, how much you may need for a down payment, what credit requirements you should know about, how FHA mortgage insurance works, and how FHA compares with conventional financing. What Is an FHA Loan? An FHA loan is a mortgage insured by the Federal Housing Administration, which is part of the U.S. Department of Housing and Urban Development. The FHA does not typically lend the money directly to the homebuyer. Instead, FHA insurance allows approved lenders to offer mortgages with features that can be helpful for borrowers who may not qualify as easily for conventional financing. One of the biggest advantages is the potential for a down payment as low as 3.5% of the purchase price. FHA loans are available for eligible one- to four-unit properties, subject to FHA requirements. For a Sacramento homebuyer who has steady income but does not have a large amount saved for a down payment, that can make a meaningful difference. Can You Buy a House in Sacramento With an FHA Loan? Yes. FHA loans can be used to purchase eligible homes in Sacramento and throughout California. The property must meet FHA requirements, the borrower must meet the applicable underwriting guidelines, and the loan must fall within the FHA loan limit for the area. FHA financing can be particularly attractive to first-time homebuyers, buyers with limited savings, and borrowers whose credit profile may make conventional financing more difficult. However, FHA is not automatically the best option for every buyer. The right loan depends on your income, credit profile, available cash, debt, property type, and long-term plans. How Much Is the FHA Down Payment in Sacramento? One of the biggest reasons buyers consider FHA financing is the down payment. The minimum FHA down payment can be 3.5% when the borrower meets the applicable credit requirements. For example: Home Price 3.5% Down Payment $400,000 $14,000 $450,000 $15,750 $500,000 $17,500 $550,000 $19,250 $600,000 $21,000 Keep in mind that the down payment is not the only cash you may need to purchase a home. Buyers should also plan for closing costs, prepaid expenses, inspections, and other transaction-related expenses. The good news is that your total cash requirement may be different from simply adding the down payment and closing costs together. Depending on the transaction, there may be options involving seller concessions, gifts, or eligible assistance programs. That is why it is important to have your entire financing strategy reviewed before assuming you need a certain amount of cash. What Credit Score Do You Need for an FHA Loan? FHA financing is often associated with more flexible credit requirements than conventional loans. A commonly cited FHA benchmark is a 580 credit score for maximum financing, which corresponds to the 3.5% minimum down payment. FHA guidelines also permit different financing structures for borrowers with lower scores, subject to applicable requirements. However, the FHA minimum does not necessarily mean every borrower with that score will automatically qualify. Lenders still evaluate the complete financial picture, including: Your lender may also have requirements that are more restrictive than FHA’s baseline guidelines. So instead of asking only, “What credit score do I need for an FHA loan?” it is better to ask: “How does my complete financial profile fit the FHA guidelines?” What Are the FHA Loan Limits in Sacramento for 2026? FHA loan limits are not the same everywhere. HUD establishes FHA loan limits annually, and the limits can vary by county and property type. For 2026, FHA’s national one-unit loan-limit floor is $541,287 and the national ceiling is $1,249,125. Sacramento-area buyers should verify the applicable limit for the specific county and property because FHA limits can vary based on location and the number of units. This matters if you are looking at a higher-priced Sacramento-area property. For example, if the home you want to purchase requires financing above the applicable FHA limit, you may need to consider a larger down payment or a different loan program. Your mortgage professional can verify the current FHA limit for the property you are considering before you make an offer. Does FHA Require Mortgage Insurance? Yes. FHA loans generally involve mortgage insurance, which is an important part of comparing FHA financing with conventional financing. FHA mortgage insurance can include an upfront mortgage insurance premium as well as an annual mortgage insurance premium that is paid over time through the mortgage payment. This is one reason why you should not compare FHA and conventional loans based only on the down payment. An FHA loan may allow you to purchase with a smaller down payment, but the overall monthly payment and long-term cost need to be considered. The best mortgage is not necessarily the one with the lowest amount due at closing. It is the loan that best fits your financial situation. Can First-Time Homebuyers Use FHA Loans in Sacramento? Yes. You do not have to use FHA financing only because you are a first-time buyer, and being a first-time buyer does not automatically mean FHA is the best choice. However, FHA can be a useful option for buyers who are purchasing their first home and want to minimize the upfront down payment. Sacramento first-time buyers should compare FHA with other available programs, including conventional financing and California down payment assistance programs. For some buyers, an FHA loan combined with an eligible assistance program may provide a path to homeownership that would otherwise be difficult. Can You Use Down Payment Assistance With an FHA
Can You Buy a Home While Selling Your Current Home?
Selling your current home while buying your next one can feel like trying to move two puzzle pieces at the same time. You need the equity from your current property, but you also need somewhere to live once it sells. For many California homeowners, coordinating both transactions is possible with the right strategy and planning. The key is understanding your financing options, your available equity, and the timing of both transactions before making an offer on your next home. Can You Buy a New Home Before Selling Your Current Home? Yes, in many cases, you can purchase a new home before selling your existing property. However, whether you qualify will depend on your income, existing mortgage payment, available assets, debt-to-income ratio, and the specific loan program being used. If you can qualify while carrying both mortgage payments temporarily, you may be able to purchase your next home first and sell your current home afterward. For homeowners who need the proceeds from their existing home to complete the purchase, the strategy becomes more dependent on timing and the structure of the transactions. How Does Buying and Selling at the Same Time Work? There are several ways homeowners can coordinate the purchase of a new home with the sale of their current property. One common approach is to make the purchase of your next home contingent on the sale of your current home. This can provide additional protection because you are not required to complete the purchase unless your existing property sells. However, a sale contingency can make an offer less attractive to a seller, particularly in a competitive market. Another option is to sell your current home first and negotiate a longer closing period or a rent-back arrangement. This can give you additional time to find and purchase your next home without carrying two properties. For homeowners with sufficient equity and qualifying income, purchasing the new home first may also be an option. What If You Need the Equity From Your Current Home? This is one of the most important questions to answer before shopping for your next home. If you are relying on the proceeds from your current property for the down payment or closing costs on your next home, your lender will need to understand how and when those funds will become available. For example, if your current home is expected to sell for $700,000 and you owe $400,000 on the mortgage, you may have significant equity available. However, your actual proceeds will also be affected by selling expenses, commissions, closing costs, and other obligations. Understanding your estimated net proceeds can help determine how much you realistically have available for your next purchase. What Is a Rent-Back Agreement? A rent-back agreement can sometimes help homeowners who need to sell their existing home before purchasing another one. With a rent-back arrangement, you sell your home but remain in the property for an agreed-upon period after closing while you transition into your next home. The terms vary by transaction and should be negotiated with your real estate professionals. Depending on the situation, the buyer may agree to allow the seller to remain in the home for a specified period in exchange for rent or other agreed-upon terms. This can create additional flexibility when coordinating two transactions. Can You Qualify for Two Mortgages at Once? Potentially, yes. If you purchase your new home before your existing property sells, the lender may need to evaluate your ability to carry both housing payments. Your qualifying income, debts, assets, credit profile, and loan structure will all play a role in determining whether you qualify. This is why getting your financing reviewed before putting your current home on the market—or before making an offer on your next home—is so important. A mortgage professional can help you determine whether carrying both properties temporarily is realistic or whether your transaction should be structured around the sale of your existing home. What Is a Sale Contingency? A sale contingency is a provision in a purchase agreement that makes your purchase dependent on selling your current home. For example, you may find your ideal home before your existing property has sold. A sale contingency could allow you to move forward with the purchase while giving you time to sell your current property. The seller, however, has to agree to the contingency. In a competitive market, sellers may prefer offers without contingencies because they generally involve fewer moving parts. Your real estate agent can help you determine whether a sale contingency makes sense for your particular situation. What About a Bridge Loan? A bridge loan can be another potential strategy for homeowners who need temporary financing to purchase their next property before selling their existing home. The basic concept is that short-term financing can help bridge the gap between purchasing the new property and receiving the proceeds from selling the old one. Bridge financing isn’t appropriate for every borrower, and availability, qualification requirements, costs, and terms can vary. Your loan professional can determine whether this type of financing is available and appropriate for your situation. What Should You Do Before Listing Your Current Home? Before putting your home on the market, it can be helpful to understand your complete financial picture. Start by determining approximately how much equity you have in your current property. Then estimate your selling expenses and calculate your potential net proceeds. Next, determine how much you could qualify for on your next home. This gives you a much clearer picture of your buying power and helps prevent surprises later in the process. It is also important to avoid assuming that the amount your home sells for is the amount you will have available for your next down payment. Your mortgage payoff, selling costs, taxes, commissions, credits, and other expenses can reduce the amount of cash you ultimately receive. The Bottom Line Yes, you can potentially buy a new home while selling your current home. The best strategy depends on your equity, income, available assets, credit profile,
Can I Use Gift Money for a Down Payment?
Dear Homebuyer, If you’re thinking about buying a home but are concerned about having enough money for your down payment, you may be wondering if a family member can help. In many cases, the answer is yes. Gift funds from an eligible family member can potentially be used toward your down payment and certain closing costs, depending on your mortgage program. The important part is making sure the gift is properly documented. Your lender may require a gift letter confirming that the money does not need to be repaid, along with documentation showing where the funds came from and how they were transferred. If a parent, grandparent, or other eligible family member is planning to help with your home purchase, it’s best to talk with your loan officer before the money is transferred. Moving funds without proper documentation can create additional questions or delays during underwriting. Gift money can make homeownership more attainable, especially for first-time buyers who may have the income to qualify but need additional help with upfront costs. Understanding the rules ahead of time can make the process much smoother. If you’re considering buying a home in California and your family is willing to help, The Harris Team can walk you through your options and help you understand what may be possible for your specific situation.
Can You Buy a Home in California With No Money Down?
For many Northern California homebuyers, saving enough money for a traditional 10% or 20% down payment can feel like the biggest obstacle to homeownership. With home prices across Sacramento, Roseville, Elk Grove, Folsom, Rocklin, and surrounding communities, putting together tens of thousands of dollars can take years. But here’s the good news: you may not need a large down payment to buy a home in California. Depending on your eligibility, there are loan programs and financing strategies that can allow qualified buyers to purchase a home with little or even no money down. The important thing to understand is that “no money down” does not always mean “zero dollars needed to close.”There can still be closing costs, prepaid taxes and insurance, inspections, appraisal fees, and other expenses associated with purchasing a home. However, there are strategies that may help reduce the amount you need to bring to the closing table. VA Loans Can Offer 0% Down For eligible veterans, active-duty service members, and certain surviving spouses, VA loans can provide one of the strongest paths to homeownership with no down payment. A qualified VA borrower may be able to purchase a home with 0% down, meaning the mortgage can finance the entire purchase price within applicable program limits and guidelines. For example, on a $700,000 home: A 20% down payment would be $140,000. A 10% down payment would be $70,000. A 5% down payment would be $35,000. A 3% down payment would be $21,000. With an eligible VA loan, the required down payment could be $0. For Northern California veterans, this can be especially valuable because buyers can preserve their savings rather than putting a large portion of their cash into the property upfront. USDA Loans May Also Provide 100% Financing USDA loans are another potential option for qualified buyers who want to purchase a home with no down payment. The major consideration is the property’s location. USDA financing is designed for eligible properties in qualifying rural areas, and both the borrower and property must meet applicable requirements. Some Northern California communities may qualify even though they are relatively close to larger cities. If you’re considering a home outside major metropolitan areas, it can be worth checking whether the property qualifies before assuming you’ll need a traditional down payment. Down Payment Assistance Can Reduce Your Out-of-Pocket Costs For buyers who don’t qualify for a zero-down mortgage, down payment assistance programs may provide another path toward homeownership. Depending on the program, assistance may help with the down payment and, in some cases, eligible closing costs. California has several homebuyer assistance programs, including programs offered through the California Housing Finance Agency. Eligibility can depend on factors such as income, purchase price, location, first-time buyer status, and other requirements. Because program guidelines and availability can change, buyers should review current requirements with a qualified mortgage professional before making assumptions about eligibility. You Don’t Necessarily Need 20% Down One of the biggest misconceptions among first-time buyers is that they need 20% down to purchase a home. That’s simply not true for many borrowers. Some conventional loan programs allow qualified buyers to put as little as 3% down. FHA financing can allow eligible borrowers to purchase with as little as 3.5% down. For example, on a $500,000 home: A 20% down payment would be $100,000. A 10% down payment would be $50,000. A 5% down payment would be $25,000. A 3.5% down payment would be $17,500. A 3% down payment would be $15,000. For a buyer who has been saving for years, the difference between needing $100,000 and potentially needing $15,000–$17,500 can completely change the timeline for purchasing a home. Can the Seller Help With Closing Costs? Potentially. Depending on the loan program and transaction, seller concessions may be used toward certain eligible closing costs and prepaid expenses. This can be particularly useful for buyers who have enough money for their required down payment but don’t want to spend all of their savings on closing costs. For example, a buyer may have $20,000 available but need to use a significant portion of that money for the down payment. If the transaction allows for an appropriate seller credit, some eligible closing costs could potentially be covered by the seller instead. The exact amount a seller can contribute depends on the loan type, occupancy, transaction structure, and applicable guidelines. Lender Credits May Also Reduce Cash Needed at Closing Another strategy that may help reduce upfront expenses is a lender credit. A lender may provide a credit toward certain closing costs in exchange for a higher interest rate or different loan pricing. This can reduce the amount of cash a buyer needs to bring to closing. However, a lender credit should always be evaluated carefully. Saving money upfront can result in a higher monthly payment or greater interest expense over the life of the loan. The goal isn’t simply to minimize your cash to close. It’s to find the financing structure that makes sense for your overall financial situation. Don’t Forget About Earnest Money Even if you’re purchasing a home with a zero-down loan, you may still need cash during the homebuying process. One example is an earnest money deposit. Earnest money is typically deposited after an offer is accepted and demonstrates the buyer’s commitment to the transaction. Depending on the contract and transaction, the deposit can generally be credited toward the buyer’s funds needed at closing. This means that buyers pursuing a low-cash or zero-down strategy should understand when money will be needed throughout the transaction—not just on closing day. What Does a Zero-Down Purchase Look Like? Let’s use a hypothetical $600,000 Northern California home as an example. With a 20% down payment, the buyer would need: $120,000 down With a 5% down payment: $30,000 down With a 3% down payment: $18,000 down With an eligible VA loan: $0 down These examples only illustrate the down payment. Closing costs, prepaid expenses, loan-specific fees, and other costs may still apply. That’s why it’s important to look at
What Are Mello-Roos Taxes and How Do They Affect Your Mortgage?
When you’re shopping for a home in California, you may come across the term Mello-Roos while reviewing a property listing, property tax bill, or disclosures. For many first-time homebuyers, Mello-Roos can be confusing—and sometimes it can make a significant difference in what a home actually costs each month. A home that appears affordable based on its purchase price may have additional Mello-Roos assessments that increase the total monthly housing payment. If you’re buying a home in Sacramento, Elk Grove, Roseville, Folsom, or another California community, understanding Mello-Roos before making an offer can help you budget more accurately and avoid surprises after closing. What Is Mello-Roos? Mello-Roos is a special tax assessment used by certain California communities to help pay for public infrastructure and services. The official name is a Community Facilities District (CFD). These districts can be established to help finance things such as: The Mello-Roos tax is generally paid by property owners within the designated district. It is separate from the regular property tax assessed on the value of your home. This distinction is important because buyers sometimes look only at the purchase price and standard property taxes when estimating their monthly payment. Why Do Some California Homes Have Mello-Roos? Mello-Roos is particularly common in newer developments. When a developer builds a new community, the area may require significant infrastructure and public facilities. Rather than having all of those costs funded upfront through traditional property taxes, a Community Facilities District can be established to finance the improvements. The resulting special tax is then collected from property owners within that district. This means two homes that appear very similar—and even have similar purchase prices—can have significantly different total monthly housing costs if one has Mello-Roos and the other does not. How Much Is Mello-Roos? There isn’t one standard Mello-Roos amount. The assessment varies depending on the specific Community Facilities District, property type, development, and the financing structure used by that district. For a homebuyer, the important thing is that you need to look at the specific property rather than assuming a standard amount. A property could have a relatively small annual assessment, while another property in a nearby development could have a much larger one. For example, imagine two homes: Home A Home B The homes have the same purchase price, but Home A costs approximately $100 more per month in taxes and assessments. Over a year, that’s an additional $1,200. That’s why looking only at the purchase price isn’t enough. Does Mello-Roos Affect Your Mortgage Payment? Yes. This is one of the most important things buyers need to understand. Your total monthly housing payment can include more than just principal and interest. Depending on the loan and property, your monthly payment may include: Principal + Interest + Property Taxes + Homeowners Insurance + HOA + Other Applicable Assessments Mello-Roos is generally treated as a property-related assessment that needs to be considered when determining the property’s total housing expense. So if you’re comparing two homes, the home with the lower purchase price isn’t necessarily the home with the lower monthly payment. Example Let’s say you’re considering a $600,000 home. Your principal and interest payment might be around $3,500 per month, depending on your interest rate, down payment, and loan program. Then you add: Your actual monthly housing expense could be substantially higher than the principal-and-interest payment alone. This is why a mortgage payment estimate that doesn’t account for the property’s actual taxes and assessments may not tell the whole story. Can Mello-Roos Affect How Much House You Qualify For? Potentially, yes. Mortgage qualification isn’t based solely on the purchase price of the home. Lenders look at your overall monthly obligations and income when calculating your debt-to-income ratio (DTI). Because property taxes and applicable assessments contribute to the housing expense used for qualification, a property with higher Mello-Roos could affect the amount a borrower qualifies for. For example, two borrowers with identical income and credit profiles could potentially qualify differently depending on the property they’re purchasing if the properties have significantly different tax and assessment obligations. This is one reason it’s important to have your loan officer review the actual property before assuming you can afford it. Is Mello-Roos Included in Property Taxes? Mello-Roos is generally collected through the property tax system, but it is not the same thing as the standard ad valorem property tax. Your property tax bill can contain multiple different charges and assessments. A buyer shouldn’t simply look at the base property tax rate and assume that represents the entire tax obligation. There can be additional assessments associated with the property. That’s why reviewing the property’s tax information is so important before purchasing. How Do You Find Out If a House Has Mello-Roos? One of the easiest ways is to have your real estate agent or mortgage professional investigate the property’s tax information. You can also review the property’s tax bill and disclosures. When you’re considering a home, ask: “Does this property have Mello-Roos?” Then ask: “How much is the annual assessment?” And finally: “How long does the assessment remain in place?” Those questions can help you understand the property’s true cost. Does Mello-Roos Ever Go Away? Potentially. The duration depends on the specific Community Facilities District and the bonds or financing associated with it. Some assessments may have a scheduled expiration, while others can continue under the terms established by the district. Don’t assume that Mello-Roos will automatically disappear after a certain number of years. If you’re considering buying a property with a Mello-Roos assessment, ask for the specific terms associated with that property. Should You Avoid Buying a Home With Mello-Roos? Not necessarily. Mello-Roos isn’t automatically a bad thing. In some communities, buyers may be perfectly comfortable paying the additional assessment because they value the neighborhood’s schools, parks, infrastructure, amenities, or newer construction. The key is to understand what you’re paying and make sure it fits comfortably within your budget. Instead of asking: “Does this house have Mello-Roos?” A better question is: “Does the total monthly cost of this house make sense for me?”
Why So Many Healthcare Workers Are Choosing to Buy Homes in Sacramento
Helping Those Who Spend Their Lives Helping Others If you’re a healthcare professional, chances are your days are anything but ordinary. Long shifts, early mornings, late nights, weekends, holidays—you show up when your community needs you most. Whether you’re a nurse, physician, therapist, pharmacist, technician, or another essential member of the healthcare field, your career is built around caring for others. But when it comes to one of the biggest decisions in your own life—buying a home—you deserve someone who is just as committed to taking care of you. That’s why so many healthcare professionals are choosing to buy homes in Sacramento, and why The Harris Team is proud to help make that journey a little easier. Sacramento Is More Than a Place to Work—It’s a Place to Call Home Sacramento has become one of California’s fastest-growing healthcare hubs. With nationally recognized hospitals, expanding medical campuses, and a strong demand for healthcare professionals, it’s a city filled with opportunity. For many buyers, Sacramento offers something that’s becoming increasingly difficult to find in California: the chance to own a home while enjoying a balanced lifestyle. Communities like Elk Grove, Roseville, Folsom, Natomas, and East Sacramento provide a variety of neighborhoods that fit different lifestyles, whether you’re looking for a quiet place to raise a family, a shorter commute, or easy access to outdoor recreation and local dining. It’s not just about where you work—it’s about where you want to build your future. Your Career Looks Different Than Most—and Your Mortgage Should Too Healthcare careers often come with unique financial situations. You may work overtime, receive shift differentials, earn bonuses, or have recently completed residency. You may also be carrying student loan debt while building a strong income and long-term career. The good news is that these factors don’t automatically prevent you from becoming a homeowner. There are a variety of mortgage options available depending on your profession, income, and financial goals. Understanding which loan is the best fit starts with working alongside a mortgage team that takes the time to understand your complete financial picture—not just the numbers on paper. Homeownership Is About More Than Buying a House For many healthcare professionals, buying a home represents something much bigger than a real estate transaction. It’s creating a place to recharge after long shifts. It’s building equity instead of paying rent. It’s putting down roots in the community you serve every day. It’s investing in your future while creating stability for yourself and your family. Homeownership isn’t simply about owning property—it’s about building the life you’ve worked so hard to achieve. You Shouldn’t Have to Navigate the Process Alone Buying a home can feel overwhelming, especially when you’re balancing a demanding career. Between gathering documents, understanding loan options, and keeping up with your work schedule, it’s easy to feel like there’s never enough time. That’s where having the right mortgage partner makes all the difference. At The Harris Team, we believe communication matters just as much as numbers. We work to simplify the mortgage process, answer your questions clearly, and keep you informed every step of the way. Our goal is to make financing your home feel straightforward, not stressful. Sacramento Continues to Be a Great Place to Build Your Future Healthcare professionals continue to choose Sacramento because it offers strong career opportunities, diverse neighborhoods, and a quality of life that’s difficult to match. Whether you’re purchasing your first home, relocating for a new position, or looking for more space for your growing family, Sacramento provides opportunities for long-term homeownership and financial growth. And as the region continues to grow, investing in a home today can become an investment in your future tomorrow. The Harris Team Is Here When You’re Ready You spend your career helping others feel confident during life’s most important moments. When it’s your turn to make one of the biggest financial decisions of your life, you deserve a team that’s committed to doing the same for you. At The Harris Team, we’re honored to help healthcare professionals throughout Sacramento and the surrounding communities navigate the home financing process with confidence. From your first conversation through closing day, we’re here to answer your questions, explain your options, and help you move forward with clarity. If homeownership is one of your goals, we’d love the opportunity to help you take the next step. Let’s start the conversation today and help you find the financing solution that’s right for your future.