How to Buy a Home in Sacramento with Just 1% Down

Published on Jun 27, 2025

Dreaming of owning a home in Sacramento, but find the traditional down payment daunting? You're definitely not alone. For many aspiring homeowners, accumulating enough for a hefty down payment is often the largest obstacle standing between them and their new front door. Fortunately, at Pacific National Lending, we offer solutions that allow qualified Sacramento buyers to purchase a home with just 1% down, making homeownership not only achievable but surprisingly affordable.

Is It Possible to Get a Home with Only 1% Down?

Contrary to popular belief, a 20% down payment isn’t always necessary to purchase a home. While saving thousands upfront can take significant time, innovative mortgage programs and down payment assistance options have become increasingly popular, especially in areas like Sacramento, where rising rents make buying even more attractive.

Many independent mortgage brokers, including our experienced team at Pacific National Lending, have access to special affordability programs—like United Wholesale Mortgage’s Conventional 1% Down Purchase program.* Under this unique opportunity, eligible homebuyers can secure their new home by paying only 1% down at closing.

Here’s how it works: the homebuyer covers just 1% of the home's price, while the lender contributes an additional 2%, up to $7,000. That extra amount provided by the lender counts as down payment assistance and does not need to be repaid. It's essentially free money to help Sacramento buyers achieve homeownership faster.

Is a 1% Down Mortgage Realistic and Safe?

After the financial crisis in 2008, it's understandable to question mortgage programs that sound “too good to be true.” However, today’s mortgage industry is highly regulated, ensuring strong borrower protections. Rigorous guidelines and strict lending criteria are now standard, giving buyers peace of mind that these low down payment programs are both realistic and secure.

To qualify for a 1% down home loan, borrowers typically must meet specific income guidelines and credit requirements. These criteria help ensure that the borrower has the financial stability necessary to comfortably handle their mortgage payments.

Other Low Down Payment Options Available in Sacramento

If you don’t qualify for the 1% down program, don't worry—there are several other attractive mortgage options for Sacramento homebuyers to explore.

• VA Loans: If you or your spouse have served in the U.S. Armed Forces, VA loans allow you to buy with zero down payment.

• USDA Loans: For homes located in eligible rural or suburban areas near Sacramento, USDA loans also offer a zero down payment option.

• FHA Loans: FHA loans are extremely popular with first-time buyers in Sacramento, allowing you to purchase with just a 3.5% down payment.

At Pacific National Lending, we also help buyers understand other tools such as rate buydowns, which can significantly lower your initial interest rate, making monthly payments easier to manage. Using these strategies, many Sacramento residents successfully transition from renting to owning their homes, even during periods of higher interest rates.

Why Sacramento Homebuyers Should Consider Low Down Payment Programs

The Sacramento housing market remains competitive, making flexible financing solutions essential. With rising rents across the region, homeownership can provide more stable monthly payments and the chance to build long-term equity.

Low down payment programs aren’t simply about affordability—they can also help buyers preserve their savings for future goals like retirement, college funds, or emergency reserves. This financial flexibility can enhance your quality of life and overall peace of mind.

Ready to Buy a Home in Sacramento with 1% Down?

At Pacific National Lending, our local mortgage experts specialize in guiding Sacramento residents through every step of the homebuying process. We'll take the time to clearly explain your options, helping you identify which program best fits your financial situation.

Whether you're ready to jump into homeownership with only 1% down or interested in exploring other low-down payment solutions, our team can provide personalized guidance, quick pre-approvals, and competitive interest rates. With Pacific National Lending on your side, homeownership in Sacramento can become a reality sooner than you might expect.

Take the First Step with Pacific National Lending

Curious about your options? Let our Sacramento mortgage specialists help you determine if you qualify for a 1% down home loan or other affordable financing options tailored to your needs. There’s never been a better time to explore homeownership opportunities in Sacramento.

Call us today at (877) 536-3076, or visit our local office at 2377 Gold Meadow Way, Ste 100, Gold River, CA 95670.

At Pacific National Lending, we believe everyone deserves the chance to experience the pride and stability of homeownership. Let us help you open the door to your new home.

Disclaimer: The principal, interest, and MI payment on a $200,000 30-year Fixed-Rate Loan at 6.625% and 97% loan-to-value (LTV) is $1,370.62. The Annual Percentage Rate (APR) is 6.989% with estimated finance charges of $6,500. The principal and interest payments, which will continue for 360 months until paid in full, do not include taxes and home insurance premium, which will result in a higher actual monthly payment. Rates current as of 06/10/25. UWM pays the lesser of 2% or $7,000 of the down payment. Borrower pays 1% of the down payment (or remaining down payment needed if 2% exceeds $7,000). Subject to borrower approval. Some exclusions may apply.