Buying your first home in Sacramento usually feels harder than it actually is. The biggest barrier is rarely the monthly payment - it's the cash to close. The good news is Sacramento has more first-time buyer programs than almost any other California market, and most buyers qualify for more than they realize.
Most Sacramento first-time buyers fit into one of three stacks. Stack 1: CalHFA first mortgage + SHRA CalHome or PLHA 2nd. This is the standard low-income City/County of Sacramento stack and the only verified working combination. Stack 2: FHA + NHF (National Homebuyers Fund). NHF is FHA-only and offers up to 5% of the loan amount in DPA. Best when CalHFA income limits don't fit. Stack 3: Conventional 3% down + seller credits. For buyers above DPA income limits who can negotiate seller help.
CalHFA FHA requires a 640+ credit score. CalHFA Conventional requires 680+. These are program rules, separate from any 2nd-mortgage DPA. The 2026 CalHFA MyHome household income limit for Sacramento County is $245,000 (effective 06.30.2026, per CalHFA). That applies to all CalHFA first mortgages and subordinate mortgages except Dream For All. The SHRA 2nd (CalHome or PLHA) has its own separate qualifying criteria, capped at 80% AMI.
SHRA administers two currently active first-time homebuyer down payment assistance programs: PLHA (Permanent Local Housing Allocation) and CalHome. Both provide deferred-payment second mortgages that pair with an FHA, conventional, or CalHFA first mortgage in the City and County of Sacramento. PRMG and Ken Clark Jr. are among the small group of SHRA-approved lenders in Sacramento, which means we originate these programs directly.
PLHA First-Time Homebuyer Program specifics (per SHRA program flyer): up to 20% of purchase price capped at $50,000, minimum loan $10,000, 1% simple interest, deferred for a 30-year term. No monthly payments. Loan is due at sale, transfer, when the property ceases to be owner-occupied, or at loan maturity. First mortgage must be a 30-year fixed rate FHA, conventional, or CalHFA loan with an impound account. Housing debt ratio 28% to 38%, total DTI capped at 45%. First-time buyer status required (no ownership in the past three years, or displaced homemaker or single parent). Eligible properties: single-family homes, condos, and half-plexes within the City and County of Sacramento, meeting SHRA housing quality standards. Homebuyer education class required. 2026 household income limits (80% AMI): 1-person $72,050, 2-person $82,350, 3-person $92,650, 4-person $102,900, 5-person $111,150, 6-person $119,400. Program funding is capped, so timing matters.
MCC (Mortgage Credit Certificate) note: MCCs convert a portion of your annual mortgage interest into a dollar-for-dollar federal tax credit, often worth $2,000 to $4,000 per year in early loan years. In Sacramento, MCC funding has been offered through both SHRA locally and GSFA at the statewide level. MCC funding is capped and often fully allocated. Current 2026 availability should be confirmed with SHRA at (916) 440-1393 or with a GSFA-approved lender.
GSFA Platinum is a statewide DPA program with higher income limits than CalHFA (often up to $200K depending on county). It comes as a grant or repayable second. Not restricted to first-time buyers. Best for higher-income Sacramento households or dual-income couples in Roseville, Rocklin, Granite Bay.
NHF (National Homebuyers Fund) is a multi-state DPA available only for FHA loans. Provides up to 5% of the loan amount as a forgivable or repayable second. Income limits often up to 140% AMI - much more generous than CalHFA. Best for Sacramento FHA buyers above CalHFA income limits who don't fit SHRA.
On a $475,000 Sacramento home, a CalHFA FHA first mortgage paired with SHRA CalHome DPA can reduce cash-to-close meaningfully when income, credit, and property location qualify. The CalHFA first mortgage handles the 96.5% LTV; SHRA assistance covers a portion of the 3.5% down and closing costs. Exact amount depends on the specific SHRA program, your income tier, and current funding. Subject to underwriting.
Mistake 1: Trying to stack programs that don't actually work together. Only CalHFA + SHRA is a verified working stack. Mistake 2: Assuming the DPA covers everything. Most programs cover down payment and a portion of closing costs, but reserves and prepaids are still needed. Mistake 3: Waiting until they have the full down payment saved. DPA exists for a reason - use it.
CalHFA FHA requires 640+ and CalHFA Conventional requires 680+. These are program rules. Lender overlays may differ. The 2nd-mortgage DPA portion may have different credit requirements.
In Sacramento, the only verified working stack is CalHFA first mortgage + SHRA 2nd (CalHome or PLHA). Other programs like GSFA, NHF, and Chenoa are typically standalone and cannot combine.
SHRA CalHome targets first-time or income-eligible buyers in eligible Sacramento City or County areas. Income limits apply. Verify your eligibility via the SHRA map application or with an SHRA-approved lender.
Once eligibility is confirmed and program funds are reserved, typical purchase closings run 25-40 days. DPA layered transactions sometimes take a few days longer than non-DPA loans because of program-specific document requirements.
DPA programs are funded in cycles. When funds run out, applications are queued or the program pauses. This is why early planning matters. Check current funding status with an SHRA-approved lender before writing an offer.
20 minutes on the phone, no pressure. Walk away with a clear picture of your real options.
Disclaimer: This page is for educational purposes only and is not a commitment to lend or guarantee of approval. Loan programs, rates, terms, eligibility, and program availability are subject to change and depend on credit, income, assets, property, occupancy, location, and underwriting. Not all borrowers will qualify. Individual results vary. Equal Housing Opportunity. PRMG Mortgage. NMLS #75243. Ken Clark Jr. NMLS #225375. PRMG is licensed in 49 states, excluding New York.