Conventional loans in Sacramento - flexible, efficient, often the smart pick.
Conventional financing isn't just for buyers with 20% down. With strong credit, you can put as little as 3% down, drop PMI faster than FHA, and close faster too. I'll show you when conventional beats FHA on the actual monthly payment.
Short answerA conventional loan in Sacramento can be done with as little as 3% down through HomeReady or Home Possible, needs a 620 minimum credit score, and is capped at the 2026 conforming limit of $832,750 for a one-unit home. PMI cancels automatically at 78% loan-to-value.
Conventional loans in Sacramento at a glance
- Minimum down payment
- 3% (HomeReady / Home Possible)
- Minimum credit score
- 620 (best pricing at 740+)
- 2026 conforming limit
- $832,750 (one unit)
- Mortgage insurance
- PMI only under 20% down; cancels at 78% LTV
- PMI cost range
- ~0.2%-1.5% of loan per year
- Typical time to close
- 21-25 days
Why Sacramento buyers choose Conventional.
Is Conventional right for you?
- Buyers with 700+ FICO and stable two-year employment history.
- Anyone with 10-20% saved - you may pay less monthly than FHA even with PMI.
- Move-up buyers selling a current Sacramento home and rolling equity into the next one.
- Self-employed buyers with two years of tax returns showing consistent income.
The Conventional loan process, step by step.
- 01Pre-ApprovalCredit, income, and asset review. I'll quote both FHA and conventional so you see the real comparison.
- 02Lock or FloatOnce you're in contract, we decide whether to lock your rate or wait for market movement. I'll give you a real recommendation, not a sales pitch.
- 03Appraisal & UnderwritingConventional appraisals are usually faster and less strict than FHA. Underwriting often comes back clear-to-close inside two weeks.
- 04Sign & FundYou sign at title, the lender wires funds, and you get keys. Average Sacramento conventional close is 21-25 days.
Conventional loans in Sacramento - FAQs.
What credit score do I need for a conventional loan?+
620 is the technical minimum, but rates and PMI get meaningfully better at 680, 720, and 760. I'll show you the rate impact of pushing your score up before applying.
Is conventional always better than FHA?+
No. With under 680 FICO or under 10% down, FHA is often cheaper monthly. Above 720 with 10%+ down, conventional almost always wins. I run the side-by-side so you don't guess.
How much PMI will I pay?+
Conventional PMI ranges from about 0.2% to 1.5% of the loan annually, based on credit score and down payment. With 760+ FICO and 10% down, PMI can be under $100/month on a $500K loan.
What's the conventional loan limit in Sacramento?+
$832,750 for a one-unit home in 2026 (Sacramento, Placer, El Dorado, and Yolo counties all share the baseline). Above that is jumbo.
Can I use gift funds for the down payment?+
Yes - Fannie Mae and Freddie Mac both allow 100% gifted down payments from a family member on owner-occupied purchases. Documentation is straightforward.