The first concern that comes to mind is the misunderstanding that you must fill a down payment of 20 percent to buy a house. A family I met in Sacramento thought this way and tried to save for several more years, but after consulting, they found out that they didn't need to wait that long.

The median sale price in Sacramento is $510,000 as of June 2026, based on a three-month average (Redfin). When looking at Sacramento County as a whole, the same measure is slightly higher at $538,000. Zillow's self-estimate index shows the city area at $480,488 and the entire county at $530,397, reflecting a similar trend.

Sacramento County is not classified as a high-cost area by FHFA, and the conforming loan limit for 2026 is $832,750 nationwide. In this price range, there is little need to consider jumbo loans, and you can compare conventional loans and FHA loans.

With conventional loans, if the down payment is less than 20 percent, PMI will be added, but that doesn't mean you can't buy a house. You can obtain a conventional loan with a down payment anywhere between 3 and 20 percent, and once your home equity exceeds 20 percent, you can eliminate PMI. FHA loans can start with a down payment of 3.5 percent if your credit score is above 580, but if the down payment is less than 10 percent, MIP will remain for the duration of the loan.

I recommend families considering how much down payment to prepare to compare actual numbers. If you start with a down payment of 5 percent, which is $25,500 for a $510,000 property, and compare it to starting with 20 percent, which is $102,000, calculating the monthly payment and PMI costs together will make it much clearer which option suits their situation better.

Sacramento is a region with many state government-related jobs, attracting families with stable incomes consistently. Families moving from other states should also factor in that California's income tax and property tax rates differ from their previous residence.

During times of fluctuating interest rates, deciding between fixed-rate and adjustable-rate mortgages can also be a concern. If you plan to stay long-term, a fixed rate is stable, while if you might move again in a few years, considering an adjustable-rate product with a lower initial rate may be worthwhile. In areas like Sacramento, where the median price is relatively low, the difference in monthly payments may not feel significant, but over a 30-year period, that difference can accumulate to a considerable amount. However, keep in mind that with adjustable rates, monthly payments can increase if interest rates rise. If you don't have a clear plan to move again in a few years, it may feel safer to base your decision on a predictable fixed rate.

If the budget is the same, families with a credit score above 680 and who can prepare a down payment of more than 10 percent may find it more advantageous in the long run to accept conventional loans and PMI together. Conversely, if initial funds are tight at around 5 percent, starting with an FHA loan and considering refinancing later is also an option.

While downtown Sacramento does not fall under the USDA loan-designated rural areas, some areas on the outskirts of the county may qualify, so it's safe to check by address. Families moving from other states should recalculate California's property tax rates and insurance conditions. When looking at properties near school districts preferred by Korean families, refer to ratings from GreatSchools or Niche, but keep in mind that school district boundaries change frequently, so verify the assigned school for the address before purchasing. This article is not investment or legal advice, and it is advisable to consult with a loan officer and experts before making any actual contracts.