Conventional Investment Property Loans in Sacramento, CA
Loan-size math and qualifying analysis for Conventional financing on Sacramento's $481k median home value. Moderate fit.
Moderate fit for Sacramento.
At $481k median, Sacramento requires $96k down — capital-intensive but workable for investors with W-2 income and reserves.
Payment on Sacramento's $481k median.
| Median home value (Sacramento) | $480,548 |
| Assumed LTV | 80% |
| Loan amount | $384,438 |
| Cash to close (down payment) | $96,110 |
| Assumed rate | 6.75% |
| Term | 30-year amortizing |
| Monthly P&I | $2,493/mo |
Does Sacramento pencil?
| Median monthly rent (Sacramento) | $2,020/mo |
| Property taxes (est. 1.1%/yr) | −$441/mo |
| Insurance (est. 0.5%/yr) | −$200/mo |
| NOI (before debt) | $1,379/mo |
| Debt service | −$2,493/mo |
| DSCR | 0.55 |
Most Conventional lenders require DSCR ≥ 1.10 to fund and ≥ 1.20-1.25 for the best pricing tier. Sacramento medians fall below typical lender DSCR floors — a DSCR loan will only work on properties materially below median or with above-market rent.
Conventional financing — the mechanics.
Conforming residential mortgage for non-owner-occupied 1-4 unit properties, sold to Fannie Mae or Freddie Mac. Standard 30-year amortization. The lowest-cost real-estate financing available to most investors.
Lender requires: 680+ FICO, 20-25% down, DTI typically under 45% including the new mortgage, 2 years of W-2 + tax returns, 6 months of reserves per property. Closing in 30-45 days.
How California law affects this loan.
California: state income tax up to 13.3%. See full Conventional in California breakdown.
Frequently asked.
What's the typical Conventional loan size for a property in Sacramento?
On Sacramento's $481k median home value, a Conventional loan at the standard 80% LTV would be approximately $384k, requiring $96k down.
What's the monthly payment on a typical Conventional loan in Sacramento?
Fully-amortizing 30-year payment on a $384k Conventional loan at the typical rate of 6.75% would be approximately $2k/month, excluding taxes and insurance.
Is Sacramento a good market for Conventional financing?
At $481k median, Sacramento requires $96k down — capital-intensive but workable for investors with W-2 income and reserves.
What credit and reserves do Conventional lenders require for Sacramento properties?
Lender requires: 680+ FICO, 20-25% down, DTI typically under 45% including the new mortgage, 2 years of W-2 + tax returns, 6 months of reserves per property. Closing in 30-45 days.
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