Sacramento is more attainable than California’s coastal metros, and the local housing agency — SHRA — offers a silent second worth up to $40,000 plus a mortgage tax credit to stretch a first-time buyer’s budget further.
This guide focuses on what first-time buyers in Sacramento specifically can tap in 2026 — the local programs run by the city and county, the statewide help you can layer on top, and what it realistically takes to buy here.
Sacramento’s own first-time buyer programs
Sacramento’s local help is run by the Sacramento Housing and Redevelopment Agency (SHRA):
- CalHome First-Time Homebuyer Mortgage Assistance — a SHRA silent (deferred) second of 20% of the purchase price, from a $10,000 minimum up to a $40,000 maximum, with payments deferred; CalHome cash funding runs in cycles and has been depleted at times, so verify current availability
- Mortgage Credit Certificate (MCC) — a SHRA federal tax credit on a portion of your annual mortgage interest — not cash at closing, but ongoing tax savings that also help you qualify (amounts vary)
These local programs are the piece most buyers miss, because they are run by the city or county rather than a lender — and they can often be combined with the statewide programs below.
Statewide programs you can also use in Sacramento
On top of Sacramento’s local help, every California buyer can access the state’s housing finance programs — below-market loans, down payment assistance, and a possible tax credit. We cover them in full in our guide to California first-time home buyer programs, and the wider local picture in our California first-time home buyer guide. In many cases you can stack a city program with a state program to cover most or all of your cash to close — a lender who works with both can structure it.
What it takes to buy in Sacramento
Sacramento’s median home price is around $550,000 in the city and roughly $575,000 across the metro — high for a median income, though well below the Bay Area or Los Angeles. A SHRA silent second of up to $40,000, paired with an MCC and the statewide CalHFA programs, can meaningfully close the gap for an eligible first-time buyer.
Before you shop, pin down your budget. Our home affordability guide walks through how income, debt, and rates set your price range, and our first-time home buyer checklist keeps the rest of the process on track.
Loan options for Sacramento buyers
Most Sacramento first-time buyers use one of a few loan types, each of which can pair with the assistance above:
- FHA loans — 3.5% down with flexible credit, popular with first-time buyers
- Conventional loans — as little as 3% down, with reduced mortgage insurance through state HFA versions
- VA and USDA loans — zero down for eligible veterans and in qualifying areas
- Down payment assistance — city and state programs that layer on top (see our down payment assistance guide)
How to buy your first home in Sacramento
- Check your budget and credit first — see our guide to credit score requirements.
- Complete a homebuyer education course — nearly every Sacramento and California program requires one, and it is usually free.
- Find a lender who works with both Sacramento and California programs, and ask them to run the city and state options together.
- Get pre-approved, then line up your assistance before you make an offer.
One note: local and state program funding and terms change, and some rounds close when the money runs out. Always confirm current amounts and availability with the program administrator before counting on a figure.
Sacramento first-time buyer FAQ
What down payment help is available in Sacramento?
The main local program is SHRA’s CalHome silent second, worth 20% of the price (from $10,000 up to $40,000) with deferred payments, though its cash funding runs in cycles and can be depleted. SHRA also offers a Mortgage Credit Certificate for ongoing tax savings. Both can pair with California’s statewide CalHFA programs, including the large MyHome and Dream For All options covered on our California page.
Can I combine Sacramento city programs with California state programs?
Often yes. City or county assistance is usually designed to layer on top of a first mortgage, and many buyers stack it with a California state program to cover most of their down payment and closing costs. A lender who participates in both can confirm what combines. See our California programs guide for the statewide options.
Do I have to be a first-time buyer to qualify in Sacramento?
Yes — SHRA’s CalHome program requires first-time buyer status (no ownership in the past three years, with exceptions for displaced homemakers and single parents), income at or below 80% of area median income, homebuyer education, and a home in an eligible census tract (it excludes several cities like Elk Grove, Folsom, and Rancho Cordova). Confirm current income limits and funding availability with SHRA.
Is Sacramento’s CalHome down payment help currently available?
SHRA’s CalHome silent second offers 20% of the purchase price up to $40,000, but its cash funding is intermittent — SHRA’s own materials have at times shown the funds depleted between cycles. That does not mean help is gone: the MCC tax credit and California’s statewide CalHFA programs remain available. Confirm the current CalHome funding cycle and income table with SHRA before you rely on the silent second.