Sacramento California Home Purchase With Bad Credit

Sacramento California Home Purchase: 2025 Mortgage Guide for All Buyers

Buying a home is a big decision; if you’re looking at a Sacramento California home purchase, you’re not alone. As one of the fastest-growing metro areas in California, Sacramento is full of opportunity, culture, and affordability compared to other parts of the state.

Whether you’re a first-time homebuyer, relocating, or buying with bad credit, this guide will walk you through everything you need to know to get approved for a mortgage in Sacramento in 2025.

At Gustan Cho Associates, we help homebuyers get approved fast—even if other lenders said no.

Why Choose Sacramento for Your California Home Purchase?

Sacramento is the capital of California and is located in the northern part of the Central Valley. It’s a popular spot for families, professionals, and retirees who want more affordable homes, excellent schools, and lively neighborhoods.

• Median Home Price in 2025: $483,000 (still lower than San Francisco and San Jose)
• Job Growth: Tech, healthcare, and government sectors are booming
• Lifestyle: Kayaking on the American River, visiting Old Sacramento, or skiing in Lake Tahoe

A Sacramento California home purchase offers value, location, and lifestyle. Plus, many home loan options exist for buyers with different credit and income levels.

How to Buy a House in Sacramento with Bad Credit

If you have credit issues, don’t count yourself out. At Gustan Cho Associates, we work with buyers with scores as low as 500 FICO. A Sacramento California home purchase is still possible with the right lender.

FHA Loans for Sacramento Homebuyers

FHA loans are an excellent option for homebuyers in Sacramento, especially if you’re a first-timer or trying to bounce back from bankruptcy or foreclosure. With a minimum of a 580 credit score, you can get a home with just a 3.5% down payment, and if your score is 500, you only need to put down 10%. These loans are pretty accessible for a lot of people. Gustan Cho Associates makes things even easier since they don’t have extra rules, unlike many traditional banks.

VA Loans in Sacramento

VA loans in Sacramento are a great deal for veterans, active duty service members, and surviving spouses. They can buy a home with no down payment and don’t have to worry about having a minimum credit score. Gustan Cho Associates makes it super easy to get approved, so folks can quickly take advantage of these awesome benefits when buying a home.

USDA Loans in Eligible Sacramento Suburbs

USDA loans are available for eligible suburbs of Sacramento, offering an attractive 0% down payment option. These loans cater to rural areas outside the city, such as Elk Grove, Rio Linda, and Galt. Additionally, they feature flexible credit guidelines, making homeownership more accessible for a variety of borrowers.

Even with bad credit, your Sacramento California home purchase can happen if you connect with the right mortgage team.

Down Payment Help for Sacramento California Home Purchase

Buying a home can be tough if you’re short on cash. Good news: California offers exceptional help for first-time homebuyers.

MyHome Assistance Program (CalHFA)

The MyHome Assistance Program from CalHFA is a cool way for first-time homebuyers to get help with their down payment or closing costs through a deferred junior loan. Just keep in mind that there are income limits you’ll need to meet to be eligible for this support.

CalHFA Dream for All Shared Appreciation Loan (when available)

When available, the CalHFA Dream for All Shared Appreciation Loan provides assistance with covering upfront costs associated with purchasing a home. Its repayment structure is designed to reflect the appreciation in the home’s value over time, making it a unique option for homebuyers looking to manage their financial obligations more effectively.

We can help you combine down payment help with low-credit mortgage programs for a smoother Sacramento California home purchase.

Best Neighborhoods for First-Time Buyers in Sacramento

Not sure where to buy? Here are popular areas for first-time and budget-conscious buyers:

• Tahoe Park: Quiet, charming, and close to downtown
• North Natomas: Newer homes, parks, and family-friendly
• Oak Park: Trendy with lots of development
• South Land Park: Great schools and suburban feel

Each area has its pros and cons. Let Gustan Cho Associates help you find a lender who knows the area.

Sacramento Housing Market Trends in 2025

The Sacramento housing market in 2025 remains robust, although it has stabilized compared to the rapid growth observed during 2021 and 2022. Home prices have experienced a 2.5% year-over-year increase, signaling a gradual appreciation in property values. Despite the tight inventory, the construction of new homes is on the rise, which may help alleviate some of the pressure in the market.

Additionally, rental prices continue to climb, prompting more individuals to consider purchasing homes as an alternative. For anyone contemplating the purchase of a home in Sacramento, now is still a favorable time to invest. Delaying a decision might result in higher costs in the future, making it prudent to act sooner rather than later.

What If You Don’t Have a Co-Signer?

Some buyers with credit issues consider a co-borrower. But what if you don’t have one?

Here’s what we recommend:

• Improve your credit with help from our team
• Show a strong rental history
• Save for a larger down payment

Your Sacramento California home purchase doesn’t have to wait. We help borrowers get approved every day without co-signers.

How to Qualify for a Mortgage in Sacramento With Non-Traditional Income

Are you self-employed or have non-traditional income? We have loan options for that, too.

Bank Statement Loans

• No tax returns required
• Use 12 or 24 months of business or personal bank statements

Profit & Loss (P&L) Only Loans

• Use your CPA-prepared P&L instead of W-2s

These are perfect for entrepreneurs making a Sacramento California home purchase who don’t fit the usual lender mold.

Sacramento Mortgage Rates in 2025: What to Know

Rates have stabilized after recent hikes. Here’s what to expect:

• Conventional loan rates: 6.25% – 6.75%
• FHA loan rates: Around 6.00% – 6.50%
• VA and USDA loans: Often lower with no PMI

We shop rates with over 210 wholesale lenders to get you the best deal.

Sacramento California Home Purchase for Investors

Buying a rental or second home? Here are some investor-friendly options:

DSCR Loans

Debt Service Coverage Ratio (DSCR) loans make it easier for investors to get financing, mainly based on the rental income from their property. This is a great option for anyone looking to make the most of their investment cash flow instead of depending just on their personal income.

No Income Verification Loans

These loans streamline the qualification process by focusing on the property’s value and the down payment size, rather than the borrower’s income. This approach is beneficial for investors who may have fluctuating income or prefer a more straightforward application process.

Fix and Flip Loans

Designed for short-term rehab projects, fix and flip loans provide quick access to capital for purchasing and renovating a property. This type of financing enables investors to swiftly capitalize on distressed assets, turning them into profitable rentals or resales.

Regardless of whether it’s your first or tenth investment property, we are here to assist you in financing your Sacramento deal.

Closing Costs and What to Expect in Sacramento

When you’re buying a home in Sacramento, California, don’t forget to set aside some cash for closing costs, which usually add up to about 2% to 5% of the price of the house. These expenses can include appraisal fees, title and escrow fees, lender fees, home inspection costs, and prepaid taxes and insurance.

To help ease the financial burden, Gustan Cho Associates can assist buyers in negotiating seller credits or exploring lender-paid closing cost options.

Final Tips for Getting Approved in 2025

1. Don’t open new credit cards during the loan process
2. Keep your job and avoid big purchases
3. Communicate with your loan officer regularly
4. Provide documents quickly to avoid delays

Buying a home doesn’t have to be overwhelming. With the right support, you can own a home in Sacramento this year.

Why Work With Gustan Cho Associates?

We specialize in helping borrowers who:

• Were told no by banks
• Have low credit scores
• Are self-employed
• Need fast closings
• Want no lender overlays

We’re licensed in 50 states, including all of California. We know the Sacramento market and have the loan products to help you succeed.

Start Your Sacramento California Home Purchase Today

Think you can’t buy a home in Sacramento? Think again.

At Gustan Cho Associates, we make homeownership possible for everyone, even with bad credit or non-traditional income. Borrowers who need a five-star national mortgage company licensed in 50 states with no overlays and who are experts on Sacramento California home purchase, please contact us at at 800-900-8569, text us for a faster response, or email us at gcho@gustancho.com. The team at Gustan Cho Associates is available 7 days a week, on evenings, weekends, and holidays.

Frequently Asked Questions About Sacramento California Home Purchase:

Q: Can I Still Buy a Home with Bad Credit in Sacramento?

A: Yes! A Sacramento California home purchase is still possible with bad credit. FHA loans are available with credit scores as low as 500, and Gustan Cho Associates has no extra rules, unlike most banks.

Q: What Loan Programs are Best for a Sacramento California Home Purchase?

A: Popular programs include FHA, VA, USDA, Conventional, and Non-QM loans. Each has different benefits depending on your credit, income, and goals.

Q: Are There First-Time Homebuyer Programs in Sacramento?

A: Yes! California offers help through CalHFA’s MyHome Assistance Program and the Dream for All program (when available). These programs help with your down payment for a Sacramento California home purchase.

Q: What Credit Score do I Need to Buy a House in Sacramento?

A: You can get approved with a credit score as low as 500 FICO with FHA loans. Gustan Cho Associates also works with buyers who were turned down elsewhere.

Q: Can I Buy a Home in Sacramento if I’m Self-Employed?

A: Absolutely! For your Sacramento California home purchase, you can use bank statement loans or profit & loss (P&L) loans instead of tax returns if you’re self-employed.

Q: What are the Best Neighborhoods for First-Time Buyers in Sacramento?

A: Popular areas include Tahoe Park, North Natomas, Oak Park, and South Land Park. These spots are great for first-time or budget-friendly Sacramento California home purchase.

Q: What Kind of Down Payment do I Need?

A: It depends on the loan. FHA loans require 3.5% down (or 10% if your credit is 500–579). VA and USDA loans may require 0% down. You can also use assistance programs for your Sacramento California home purchase.

Q: What’s Happening in the Sacramento Housing Market in 2025?

A: Prices are rising slowly (up 2.5% year-over-year), rent is getting more expensive, and inventory is still tight. It’s still a smart time to make your Sacramento California home purchase.

Q: Can I Buy a Home in Sacramento Without a Co-Signer?

A: Yes. If you don’t have a co-borrower, you can still qualify. Work on your credit, show rental history, and save for a bigger down payment. A Sacramento California home purchase is still within reach.

Q: How can Gustan Cho Associates Help Me Buy a Home in Sacramento?

A: We’re experts in all loan types, even for buyers with low credit, non-traditional income, or past denials. We offer fast closings and no lender overlays on your Sacramento California home purchase.

This article about “Sacramento California Home Purchase With Bad Credit” was updated on August 7th, 2025.