Low Down Payment in Sacramento Options: FHA, VA, and Conventional Loans in Sacramento

Introduction

Buying a home in Sacramento doesn’t have to mean saving up tens of thousands of dollars. With rising home prices and affordability challenges, more buyers are turning to low down payment in Sacramento programs to get into a home sooner — without draining their savings.

The good news? Sacramento homebuyers have excellent low down payment programs, including FHA, VA, Conventional 3% down, USDA, and CalHFA. Whether you're a first-time buyer, a veteran, or someone rebuilding credit, there’s likely an option that fits your situation.

Let’s break down the best low down payment programs Sacramento has to offer in 2025.

Best Low Down Payment Loan Programs in Sacramento

Here’s a clear overview of today’s most popular Sacramento low down payment loans and who they’re best for.

Conventional 3% Down (HomeReady & Home Possible)

These Conventional programs let qualified buyers purchase with just 3% down.

Benefits:

• Lower mortgage insurance than FHA

• Income-based benefits

• Great for first-time buyer low down payment Sacramento shoppers

• Allows co-borrowers and flexible income sources

These programs are ideal for buyers with solid credit and moderate income.

FHA Loan (3.5% Down)

FHA remains one of the most widely used low down payment home loans in Sacramento, especially for first-time buyers.

Highlights:

• Only 3.5% down

• Flexible credit score requirements

• Higher debt-to-income ratios allowed

• Ideal when saving for a down payment is challenging

If you need easier qualification, FHA low down payment Sacramento might be the perfect fit.

VA Loan (0% Down)

For eligible veterans and active-duty service members, the VA loan is hands-down the best zero down payment Sacramento option.

Advantages:

• 0% down payment

• No mortgage insurance (huge savings)

• Lower interest rates

• More flexible credit guidelines

If you qualify, VA should always be at the top of your list.

USDA Loan (0% Down)

USDA loans offer 0% down in eligible rural areas surrounding Sacramento — such as parts of Placerville, Galt, and areas in El Dorado County.

Why buyers choose USDA:

• 0% down

• Lower mortgage insurance

• Ideal for buyers who don’t mind living outside the city center

CalHFA Low Down Payment Programs

CalHFA offers some of the best low down payment in Sacramento options, especially for first-time buyers needing assistance.

Available programs include:

• CalHFA Conventional

• CalHFA FHA

• MyHome Assistance (down payment help Sacramento)

• CalPLUS loans with optional ZIP deferred second loan

These programs often allow you to layer down payment assistance with a low down payment loan — a powerful combo.

Down Payment Assistance for Low Down Payment Buyers

If your savings are tight, Sacramento has strong support programs you can combine with FHA or Conventional loans.

SHRA Sacramento Programs

• Local down payment and closing cost loans

• Income-based assistance

• Ideal for city or county-area buyers

GSFA Platinum & OpenDoors

• Forgivable grants

• Up to 5% assistance

• Great for low-to-moderate income buyers

CalHFA MyHome & ZIP

• Deferred payments

• Can cover down payment or closing costs

• Extremely popular for first-time buyer low down payment Sacramento shoppers

City & County Grants

Varies by year, budget, and availability.

How to Qualify for a Low Down Payment Loan in Sacramento

Credit Score Requirements

• Conventional 3%: 620+

• FHA: 580+ (sometimes lower with compensating factors)

• VA: Typically 580–620

• USDA: 620+ preferred

Income Limits

Some programs (like HomeReady, Home Possible, and CalHFA) have household income caps.

Property Eligibility

USDA requires rural zones
CalHFA must be owner-occupied
FHA must meet safety & appraisal standards

Debt-to-Income Ratio

Lower DTIs are preferred, but FHA and VA are more flexible.

Buyer Education

CalHFA and some DPA programs require completing a homebuyer education course.

Pros & Cons of Low Down Payment Mortgages

Advantages

• You can buy sooner

• Keep more savings for emergencies

• Qualify for down payment assistance in Sacramento

• Easier entry for first-time buyers

Drawbacks

• Higher monthly payments

• Mortgage insurance (except VA)

• Some programs limit property types or locations

How Much Money You Actually Need to Buy in Sacramento

Here’s a realistic breakdown based on current Sacramento home values:

Down Payment

• 0% down (VA, USDA)

• 3% down for Conventional

• 3.5% down for FHA

Closing Costs

Plan for 2%–4% of the purchase price, unless using DPA to help.

Example for a $500,000 Home

• 3% down: $15,000

• Closing costs: ~$10,000–$18,000

• Total needed: $25,000–$33,000 before assistance

With DPA, many buyers spend far less out of pocket.

FAQ: Low Down Payment Options in Sacramento

Q1: What is the lowest down payment option in Sacramento?
VA and USDA offer 0% down, while FHA (3.5%) and Conventional (3%) are the next lowest.

Q2: Does Sacramento have down payment assistance for low down payment buyers?
Yes — CalHFA, SHRA, GSFA, and various city/county programs help buyers cover down payment and closing costs.

Q3: What credit score is needed for low down payment programs?
Most require 620–660, though FHA allows lower scores.

Q4: Can I combine down payment assistance with a low down payment loan?
Absolutely. Many Sacramento buyers pair DPA with FHA or Conventional loans.

Q5: Is a low down payment a good idea?
For many buyers, yes — especially if getting into the market sooner matters more than a slightly higher monthly payment.