How much do you really need for a downpayment to purchase a home in the Sacramento area?

How much do you really need for a downpayment to purchase a home in the Sacramento area? It seems like I get this question a lot, so let’s clear this up right away because this is one of the biggest misconceptions I hear from buyers: You do NOT need 20% down to buy a home. 

I can’t tell you how many people wait years longer than they need to because they think that’s the rule. It’s not.

So…what do you actually need? It depends on the loan type, but here’s the practical real-world breakdown: 

• Conventional loans: as little as 3% to 5% down 
• FHA loans: typically 3.5% down 
• VA loans (if eligible): 0% down 
• Down payment assistance programs: In some cases, this can significantly reduce what you need out of pocket 

For example, if you are purchasing a $500,000 home: 

• 3% down = $15,000 
• 3.5% down = $17,500
• 5% down = $25,000 
• 20% down = $100,000 

That’s a big difference and for most buyers! These lower downpayment amounts are often far more realistic options for buyers than saving 20%. And Downpayments could come from places like your savings, a gift from a family member, a retirement account, or a special downpayment assistance program.

Let’s talk about down payment assistance...this is something a lot of buyers either don’t know about or assume they won’t qualify for. There are state and local programs that can help cover part of your down payment and/or closing costs. Some are structured as deferred loans, some as grants, and many are designed specifically for first-time buyers. Not everyone will qualify, and there are income limits and guidelines but it’s absolutely worth exploring. I’ve had clients who were able to get into a home much sooner because of these programs. The California Association of Realtors has a super handy downpayment assistance locator tool that you can check to see if you qualify for any programs: CLICK HERE.

What other costs should you plan for? The downpayment is just one piece. You’ll also want to budget for: 

• Transaction costs: these are negotiable, and usually in the neighborhood of 2% - 3% of the purchase price;
• Inspections: I usually recommend things like a whole house inspection, termite inspection, HVAC inspection, roof inspection, and sewer camera inspection as a baseline -- and others may be necessary depending on the property. You will want to budget $1000 - $2000 to thoroughly inspect a home;
• Appraisal: Your lender will order this, and I see these range from $700 - $1000...this is commonly lumped into your closing costs

The good news: in some situations, we can negotiate with the property seller to help offset closing costs to defray your out of pocket expenses. 

The question you should really be asking instead of “How do I get to 20% down?” is: “What’s the smartest way for me to get into a home based on my financial situation?” Because the answer is different for everyone. Some buyers should put more down. Some are better off putting less down and keeping cash on hand. Some qualify for assistance programs they didn’t even realize were available. 

So if you’re waiting because you think you don’t have enough saved yet, reach out -- it’s worth having a conversation and a real look at your numbers and your options. You might be closer than you think.

New Listing - 4744 Greenholme Drive - Unit 4, Sacramento, CA 95842

Updated and move-in ready 2 bedroom, 1 bathroom, 924sf Sacramento condo with extensive improvements throughout. Why rent when you can own? You will love the light and bright layout, brand new luxury vinyl plank flooring and new baseboards, and freshly painted interior. The updated kitchen features oak cabinets, with granite counters, brand new dishwasher, and a brand new range hood. Two large bedrooms, one with a huge walk-in closet. Updated bathroom has granite counters, dual sinks with new faucets, new toilet, new shower head, and a tub/shower combo. Updated recessed lighting throughout. Additional improvements include dual pane windows and window screens, brand new front door and front screen door. Central heat & air, attached garage space, and a convenient location close to freeway access, transit, and shopping. Don't wait! HOA dues $387/mo. Offered at $175,000. For more photos and information, please visit 4744 Greenholme Drive - Unit 4, Sacramento, CA 95842.

New Listing - 1221 Rudger Way, Sacramento, CA 95833

Well-maintained 4 bedroom, 2 bathroom, 1,716sf Natomas home with a great, functional layout and a location that's hard to beat! The formal entry opens to a spacious living room with a large picture window bringing in natural light. You will love the kitchen, which is open to the family room and perfect for entertaining! The kitchen features white cabinetry, granite countertops, stainless steel appliances, a breakfast bar, and plenty of storage including pantry cabinets. There's both a formal dining area and a breakfast nook for flexible everyday use. The living room has vaulted ceilings, a lovely fireplace, and overlooks the backyard. The large remote primary suite offers a sliding glass door to the backyard, a huge walk-in closet, and an ensuite bath with dual sinks, granite counters, and a soaking tub with shower. Three additional hallway bedrooms are well-sized with ample storage. Updated hallway bathroom has granite counters and a tub/shower combo. Inside laundry. Large two-car garage. Outside, you'll find a spacious backyard with plenty of space to garden or play! The paver patio is the perfect space to entertain or enjoy coffee and conversation or al fresco dining on a crisp evening. Section 1 & 2 pest clearance. Located just minutes from parks, schools, shopping, and I-5 and I-80 freeway access, with close proximity to the American River Parkway and an easy commute into downtown Sacramento. Offered at $525,000. For more photos, a 3D virtual tour, and details please visit 1221 Rudger Way, Sacramento, CA 95833.

Is selling ‘as-is’ to an off-market investor really my best option? NO.

I closed a transaction last week where I helped my clients net an additional $80,000. Engaging a Realtor can bring a ton of value in situations like this. 

I was connected to the administrator of a probate estate by his attorney, who found me while searching online for a Sacramento probate specialist. 

The situation with this property was challenging and the seller was overwhelmed. The home had been owned by a woman who struggled with hoarding. After her passing, the property sat vacant for over a year. During that time, it was broken into, and suffered significant damage from a plumbing leak. Utilities were shut off. The interior and exterior were filled with excessive debris. Landscaping was overgrown. It was overwhelming. 

Enter the off-market investors. Several approached the seller, offering quick, “as-is” solutions. The highest offer was around $215,000. They positioned themselves as the easy path. No cleanup. No repairs. No Realtors to pay. Just sign and be done. 

Friends: these investors are trying to buy at a steep discount…and they know many sellers in these situations feel stressed, uncertain, and just want relief. After paying off the mortgage and liens, the estate would have netted very little money. Barely enough to cover the cost of the probate itself, with a trivial amount left for the heirs of the estate. The seller was paralyzed by what to do next and tempted to take it. Thankfully I got involved and we went to work. 

The estate had no funds to prepare the property for sale, so I leveraged my network of tradespeople to make it happen with no upfront cost and the expenses billed to escrow: 

• Coordinated a full property trash-out 
• Secured the home and addressed access concerns, including boarding up gaps in the fence
• Arranged exterior vegetation cleanup 
• Got an up-front pest inspection to provide with disclosures 

Then we took professional photos and brought the home to market at $295,000. 

The response was incredible! More than 20 offers. Final sales price that closed last week: $320,000. 

That’s roughly $80,000 more net to the estate after mortgage loan and lien payoffs, and the other costs of preparation and sale than the highest off-market investor offer and a dramatically better outcome for the estate. All because they trusted me to smooth out the rough edges of the situation and take their overwhelm away. This is the difference between taking the “easy” offer versus having the right representation working on your behalf who knows how to get things done. 

Having an experienced Realtor on your side DOES NOT add complexity! We create opportunity, connect the right people to help with strategic repairs or improvements, we protect equity, and make sure sellers fully understand their options. 

Let me tell you… $80,000 makes a tremendous difference in someone’s life. I’m so happy for this family and I’m also relieved to bring a positive conclusion for them to this experience. So when people ask me if selling ‘as-is’ to an off-market investor really my best option? The answer is NO.

New Listing - 6830 Calvine Road, Sacramento, CA 95823

Impeccable residence located in The Village, a sought-after Planned Unit Development. This well-maintained 3 bedroom, 2.5 bathroom, 1442sf home combines updated and stylish finishes, a low-maintenance lifestyle, and the convenience of a prime Sacramento location. Tucked away inside the community, you will enjoy the private setting this end unit offers. Step inside and immediately appreciate the light and bright floor plan and freshly painted interior. You will love the tile flooring throughout the downstairs and brand new carpet upstairs. Spacious living room has a fireplace, and overlooks a low-maintenance patio yard. The recently updated gourmet kitchen has white cabinets, new countertops, new sink and faucet. Adjacent dining room. Whether you're preparing a meal or hosting friends and family, the ample counter space and features make it an ideal space for both cooking and entertaining. Upstairs find a huge primary suite with lots of closet space and updated ensuite bathroom. Two additional large hallway bedrooms, and an updated hallway bathroom with lots of storage. Attached 2-car garage. Brand new HVAC installed 2026. Community amenities include a great swimming pool and lots of guest parking. Dues $615/mo. Conveniently located close to light rail, Cosumnes River College, shopping, K-12 schools, parks, and highway access, this home offers something for everyone. Don't wait! Offered at $319,950. For more photos and detail, please visit 6830 Calvine Road, Sacramento, CA 95825.

New Listing - 5259 Dredger Way, Orangevale, CA 95662

This impeccable 3 bedroom, 2 bathroom, 1,558sf single-story Orangevale home offers something for everyone! You will love the spacious, light and bright layout with a freshly painted interior and laminate floors. Enter into the foyer. To your left you will find a large formal dining room, while straight ahead you will find a formal living room with vaulted ceilings and cozy fireplace overlook the backyard. The cute updated kitchen is the perfect set-up for gourmet cooking, featuring wood cabinets, a gas oven, corian countertops, a large pantry closet, and kitchen nook area that also overlooks the yard. The primary suite offers a spacious retreat, complete with a large walk-in closet. The ensuite primary bathroom has been updated with a step-in stall shower. Hallway bedrooms are spacious and the updated hallway bathroom is tastefully appointed with a tub/shower combo and newer vanity with a granite countertop. Outside the backyard offers a large covered patio space, which is the perfect place to enjoy coffee and conversation, or for al fresco dining while entertaining guests on a crisp evening. Huge 0.25ac quarter acre backyard has lots of sunny space to garden or play, or to accommodate your future swimming pool. Wide side yard and double gate provide for potential RV access for all your toys. Brand new composition roof installed in February 2026, clear section 1 pest report. 2-car garage. All this is located a in very close proximity to the American River Parkway via the Winding Oak Trail Access or Main Avenue Trailhead to the Mississippi Bar Recreation area. Also very convenient access to other parks, Lake Natoma, K-12 schools, and shopping. Don't wait! Offered at $599,900. For more photos, a video tour, and a 3D virtual tour, please visit 5259 Dredger Way, Orangevale, CA 95662.

New Listing - 715 Downing Circle, Lincoln, CA 95648

Stunning 3 bedroom, 2 bathroom, 1,835sf Lincoln home! You will love this this single-story gem with freshly painted interior, light and bright interior with tile and laminate flooring throughout. The layout is designed for flexibility. Off the entry sits a large living room room which is the perfect flex space ready to serve as a home office, a game room, or a even a possible 4th bedroom. The open kitchen is the perfect place to host a dinner party and features granite countertops, a breakfast bar, stainless steel appliances, and an ample pantry. The adjacent living room overlooks the backyard and has a cozy fireplace and integrated surround-sound wiring. Retreat to a primary suite, complete with a large walk-in closet and a ensuite bathroom featuring dual sinks, a soaking tub, and a separate shower. Large hallway bedrooms and a remodeled hallway bathroom. The backyard has lots of sunny space to garden and play, and is the perfect place to enjoy morning coffee or al fresco dining on the lovely covered patio. With a Section 1 and 2 pest clearance and several inspections already completed, this home is ready for its next chapter. Enjoy the community's premier amenities and top-rated local schools. This isn't just a house; it's the lifestyle upgrade you've been waiting for. Enjoy access to Lincoln Crossing HOA amenities which include access to numerous swimming pools, steam room and jacuzzi, recreation room, high speed internet, clubhouse, gym, and sports courts. Close proximity to Machado Park, shopping, award-winning K-12 schools, restaurants, and more. Don't wait! Offered at $550,000. Trust sale. For more photos, detail, and a 3D virtual tour please visit 715 Downing Circle, Lincoln, CA 95648.

Taxes When Selling an Inherited House in Greater Sacramento, California...

Inheriting a home can come with a lot of emotions and a lot of questions, especially as you try to piece together the puzzle of someone's financial affairs. One of the most common questions I tend to get asked when people inherit property in greater Sacramento is: “What are the tax implications if we sell the house?” or "Will we owe capital gains tax on the sale of this home?" The good news is that, in many cases, selling an inherited home in California may result in less tax than people expect because of something called a stepped-up basis. 

When someone inherits a home or become the administrator of an estate, the tax basis of the property typically adjusts to the fair market value at the date of the original owner’s death. This means that if the home was purchased decades ago for a much lower price, the heir does not inherit that original purchase price for tax purposes. Instead, the basis is “stepped up” to the value at the time of inheritance. (Side note: you may need a "date of death appraisal") 

For example, suppose a Carmichael home that was originally purchased in the 1970s for $80,000 but was worth $650,000 when the owner passed away. If the heirs later sell the home for around $650,000, there may be little to no capital gains tax owed, because the sale price is close to the stepped-up value. 

Of course, every situation is different. If significant time passes between inheriting the property and selling it and the home increases in value during that time, then capital gains could apply to the increase that occurs after inheritance. In addition, heirs should also consider property tax issues, especially if the property is kept as a rental or transferred between family members under California’s property tax rules.

Another important factor is how the property was held. Many Sacramento homes pass through living trusts, which often allows families to sell the property without going through probate. Others may require a probate process before the home can be sold. The tax implications can vary slightly depending on the structure of the estate and how the sale is handled. 

Because tax rules can be complex, I always advise you speak with a CPA or other qualified tax professional before selling an inherited home. They can review the estate details, establish the correct stepped-up basis, and help ensure everything is reported properly. 

If you’ve inherited a home and and are trying to decide what to do next, you’re not alone. Many families find themselves balancing legal, financial, and emotional considerations all at once. Having a clear understanding of the tax side of the transaction is one of the first steps toward making the right decision for your situation. I welcome your call to talk through different scenarios to the extent I can be helpful or connect you with an attorney or CPA to assist you. And if you would like some guidance relative to selling via a trust estate or probate estate, here is a link to some common Q&A's I encounter from clients and tips for some practical steps.