Can I Actually Afford to Buy in Sacramento Right Now? 7 Questions Answered

Steve LaMothe • May 14, 2026

The 7 Questions Every Sacramento Buyer Is Asking on Reddit — Answered by Elevate Realty Group

By Steve Lamothe, Co-Founder · Elevate Realty Group · homesbyelevate.com · 916-436-SELL

Published: May 2026 · Sacramento, CA

Every week, thousands of first-time buyers and move-up buyers flood Reddit's r/FirstTimeHomeBuyer, r/RealEstate, and r/Sacramento with the same burning questions. Questions born from anxiety, confusion, and the very real fear of making the biggest financial decision of their lives in one of California's most competitive housing markets.

Here at Elevate Realty Group, we read those threads — because our clients are writing them. And every question represents someone who deserves a clear, honest answer — not a runaround or a sales pitch.

This week, we're answering the 7 most common buyer questions from real Sacramento-area Reddit discussions, and showing you exactly how the Elevate team addresses each one for our clients.

Q1 "How much do I actually need saved before I start looking?"

This is the #1 question on every Sacramento buyer forum. The most common Reddit answer is "20% or you're wasting your time" — and that advice stops real buyers dead in their tracks.

Here’s the truth: the median home price in greater Sacramento sits in the $500,000–$580,000 range depending on the submarket (Elk Grove, Folsom, Roseville, and Natomas all vary). A 20% down payment on that is $100,000–$116,000 — a figure that feels impossible for most households.

What Elevate Does Differently:

Our team leads every buyer consultation with a detailed breakdown of every available low-down-payment program in California:

FHA loans require as little as 3.5% down ($17,500–$21,000 on a median Sacramento home).
CalHFA programs offer down payment assistance that can reduce or eliminate your cash-to-close.
VA loans for eligible veterans require zero down — Sacramento has one of the highest concentrations of military families in California.
Conventional loans at 3–5% down are available to qualified buyers with strong credit.

Beyond down payment, we walk every buyer through the full picture: closing costs (typically 1–3% in California), lender-required reserves, and inspection/appraisal fees. No surprises. That's the Elevate standard.

Elevate Tip: Ask us about our preferred lender network — we have relationships with lenders who specialize in first-time buyer programs and can pre-qualify you in 24 hours without affecting your credit score.

Q2 "Is the Sacramento market too competitive? Should I just wait?"

Reddit threads on this question are a minefield of conflicting opinions — half say "the market is cooling, wait it out," the other half say "you'll never find a better time than now." Both miss the point.

Here’s what the data says about Sacramento right now (Spring 2026): inventory has risen modestly from 2022–2023 lows, but demand from Bay Area transplants, remote workers, and first-time buyers continues to absorb new listings quickly. In desirable zip codes — Elk Grove, East Sacramento, Midtown, Folsom — well-priced homes still see multiple offers within the first week.

The Elevate Perspective:

We don't believe in market timing for primary homebuyers. Every month you rent while "waiting for the right time," you're paying someone else's mortgage, missing equity gains, and watching your purchasing power shift as rates fluctuate.

What we believe in is strategic preparation. Elevate buyers are educated on neighborhood-by-neighborhood inventory, days-on-market trends, and offer strategy before they ever step into a showing.

Market Insight: In Sacramento County, the average days on market for single-family homes is currently 18–28 days. Homes priced correctly move fast. Overpriced homes sit. Elevate helps you identify which is which before you fall in love.

Q3 "My offer got rejected 3 times. What am I doing wrong?"

This is one of the most heartbreaking threads to read on Reddit — buyers who have been in the market 6+ months, lost multiple offers, and are starting to give up. In Sacramento, this story is common for buyers who aren't working with an agent who understands competitive offer strategy.

How Elevate Approaches Offer Strategy:

There's no one-size-fits-all offer. Every Elevate offer is built with three goals in mind:

Compete effectively on price and terms.

Protect the buyer from overpaying or waiving protections recklessly.

Make the offer memorable to the listing agent and seller — not just a number on a page.

We coach our buyers on escalation clauses, appraisal gap coverage, pre-inspection strategies, and personal letters (where legally appropriate in California). We also have direct relationships with many Sacramento listing agents — a communication advantage before an offer is ever submitted.

Q4 "Do I need to waive contingencies to win? That terrifies me."

Reddit is full of horror stories — buyers who waived their inspection contingency and discovered a $40,000 foundation issue after closing. This is one of the most legitimate fears in competitive real estate markets.

Short answer: No. You do not have to blindly waive contingencies to win in Sacramento. You need a smarter strategy.

The Elevate Approach to Contingencies:

Pre-inspections: Where allowed, we schedule a pre-inspection before the offer deadline so our buyers make an informed decision — not a blind leap.

Appraisal gap strategies: There are ways to address appraisal risk that don’t mean writing a blank check to the seller. We teach buyers the difference.

Loan contingency management: A fully underwritten pre-approval dramatically strengthens your offer without waiving loan protections entirely.

Upfront disclosure review: We go through every seller disclosure before the showing so our clients are never surprised post-offer.

Q5 "How do I know if an agent is actually working for ME?"

This question comes up constantly on Reddit — and for good reason. California's real estate landscape changed significantly with the 2024 NAR settlement. Buyer representation agreements are now standard, and many buyers don't fully understand what they're signing.

Elevate's Buyer Representation Standard:

At Elevate Realty Group, every buyer relationship starts with a Buyer Consultation — not a showing request. Before we ever open a door, we walk through: exactly how our compensation works and what you should expect to pay (or not pay), our fiduciary duty to you as your buyer’s agent explained in plain English, the full home-buying process in California step by step, and your goals, your timeline, and your non-negotiables.

Our reputation and our referral-based business model depend on clients who feel genuinely served — not pushed into a deal. That's why so many of our clients refer their friends and family through our Elevate Rewards Program.

Q6 "What Sacramento neighborhoods are actually still affordable?"

The Reddit answers on this question are wildly inconsistent because the market changes block by block. Here's an honest breakdown for 2026 Sacramento buyers:

Natomas / North Natomas: One of the most active first-time buyer markets in Sacramento. Newer construction, strong inventory. Median prices in the low-to-mid $400s.

Elk Grove: Consistently one of the most livable suburban cities in California. School quality, safety, and community are major draws. Mid $400s to mid $500s.

Antelope / Citrus Heights: Strong value play for buyers who need more square footage — typically 10–15% below Elk Grove for comparable homes.

Rancho Cordova: Rapidly improving with light rail access. Great for buyers who want proximity to downtown without downtown prices.

Folsom / El Dorado Hills: Premium market — ideal for move-up buyers or those prioritizing school districts. Mid $500s to $700s+.

Elevate agents specialize across all of these submarkets. We don't just know the prices — we know the blocks, the HOAs, the school boundaries, and the hidden gems not showing up on Zillow yet.

Q7 "Should I be worried about buying right now with rates this high?"

Interest rates have been the dominant real estate conversation for three years running. Here's the honest picture for Sacramento buyers in 2026:

Higher rates have reduced competition — meaning fewer bidding wars and more negotiating room than buyers had in 2021.

The "marry the house, date the rate" principle is real: you can refinance when rates drop, but you can't go back in time to buy the home you lost.

Home values in Sacramento have shown resilience — buyers who purchased at higher rates in 2022–2023 have largely seen appreciation that more than offsets the rate premium.

The Elevate Approach to Rate Conversations:

We never pretend to be mortgage advisors — that's what our trusted lending partners are for. But we make sure every Elevate buyer has a clear, side-by-side payment analysis before making any decision. We want you to make the right long-term choice for your family, not a rushed decision driven by fear of missing out.

Rate Reality Check: On a $500,000 Sacramento home with 10% down, the difference between a 6.5% and a 7.0% rate is approximately $160/month. In most scenarios, that is far less than continued rent increases in the Sacramento market.

Ready to Get Your Real Questions Answered?

At Elevate Realty Group, every buyer deserves expert guidance, honest answers, and an advocate who fights for their best interests — no pressure, no gimmicks.

Schedule your FREE Buyer Consultation today.

Serving Sacramento · Elk Grove · Folsom · Natomas · Roseville & All of Greater Sacramento

homesbyelevate.com 916-436-SELL

About the Author

Steve Lamothe is the Co-Founder of Elevate Realty Group, one of the Sacramento region's leading real estate teams. With a mission rooted in community, education, and genuine client advocacy, Steve and the Elevate team have helped hundreds of families achieve homeownership across the greater Sacramento area. Elevate Realty Group is also a proud partner of the Sweet Dreams Foundation, giving back to the community they serve.

This blog is published weekly. Subscribe at homesbyelevate.com for the next installment in the Buyer Education Series.

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3 Tips for Getting the Best Deal on a New Construction Home

By Steve LaMothe • May 6, 2026

Builders are offering massive incentives right now. Here's how to find them, navigate the process, and make sure you're getting the best deal possible. A lot of my clients over the past year and a half have made a big shift. They've stopped chasing resale homes and started targeting new construction exclusively. And once you see the numbers, you'll understand why. Builders across the Sacramento area are offering some of the best incentives I've seen in years. If you know how to find them and how to use them, buying new construction can be one of the smartest moves you make in today's market. Here are three things every buyer needs to know before stepping into a new construction community. 1. The incentives are real, and they're massive. Builders right now are offering $20,000 to $50,000 in incentives on new construction homes, and the primary way buyers are using these is to permanently buy down their interest rate. We have consistently locked rates below 5% on new construction deals for our clients, bringing rates down from the 7% to 7.5% range to 4.5% to 5%. That difference in monthly payment over the life of a 30-year loan is substantial. When you walk into a community, and the salesperson mentions a $5,000 or $10,000 credit, that is the tip of the iceberg. Knowing what to ask for and having someone in your corner who knows these builders is what gets you the real deal. 2. The process is different, and most of the best inventory isn't on the MLS. New construction isn't like buying a resale home, and the biggest mistake buyers make is treating it like one. Most new construction inventory isn't listed on the MLS. That means if you're searching Zillow or Redfin, you're not seeing the full picture. Some of the best deals in any new construction community come from homes that were under contract with a previous buyer who canceled. When a deal falls apart, that home often becomes available with all its upgrades already selected, and sometimes with improved incentives to move it quickly. But you only know about those opportunities if you have relationships with the builders and you know how these communities work. Getting off the internet and into the community with an agent who has those relationships is what separates buyers who get great deals from buyers who end up on a waitlist. " The builder's salesperson works for the builder. Having your own representation costs you nothing and changes everything about the deal you walk away with. " 3. The listing price isn't the real price. This one surprises many buyers. When you see a new construction home listed at $700,000, that home usually isn't available yet, and that price isn't what you'll actually pay. It's either a base price for a home that won't be ready for three or four months, which will then increase significantly with upgrades and options, or it's a price the builder has set to establish future value in the community. Walk into a sales office without your own representation, and the builder's salesperson will offer you a small credit and tell you it's a great deal. In my experience, having your own representation at the table results in meaningfully better outcomes for buyers, typically in the range of 10 to 15% compared to what unrepresented buyers are offered. The builder pays my fee. It costs you nothing to have me in your corner. New construction is one of the best opportunities in the Sacramento market right now, but it rewards buyers who understand how it works. The incentives are real, the inventory opportunities are real, and the savings from having the right representation are real. If you’re thinking about buying a new construction home in Sacramento, reach out to us before you visit any communities. We can show you what's actually available, connect you with the right builders, and make sure you are getting the deal you deserve. Call us at (916) 862-5463 , email Steve@homesbyelevate.com , or visit homesbyelevate.com .

Top 3 Reasons Insurance Is “Out of Whack” in California

By Steve LaMothe • April 15, 2026

Carriers are leaving, the FAIR plan is underfunded, and rate hikes are still coming. Here's what's happening with California insurance and how to save money. If your insurance bill doubled or tripled recently, you're probably wondering what the heck is going on. That's the exact question I've been hearing from homeowners across Northern California, and especially here in Sacramento. Last year and this year, I've had people reach out asking why their premiums skyrocketed overnight. And it's not just fire insurance. Even if you don't live in a high-risk fire area, your normal property and casualty insurance and probably your auto insurance are increasing significantly when you go to renew . I'd estimate 40 to 50%. So let's break down the three biggest reasons this is happening and I'll share a few ways you might be able to save some real money. 1. Carriers are leaving the state. This started around 2019 and 2020 and has only gotten worse. Insurance carriers began pulling out of California because the state was requiring them not to raise their premiums every year. California put caps and restrictions in place, and at the same time, the state was hit with massive wildfire losses. The Camp Fire near Chico and Paradise, the Caldor Fire that pushed almost to Tahoe, the fire in El Dorado County, and, of course, the Palisades fire. These fires created billions of dollars in costs, and that cost is shared by everyone who lives in California. On top of that, the average home price in California is very high. So when carriers lose a hundred or a thousand homes, the payouts are enormous. Many companies have decided it's simply not worth doing business here anymore. 2. The FAIR plan is underfunded and mismanaged. When carriers stopped covering homes in high-risk fire areas, the state of California stepped in and created something called the FAIR plan. This is fire insurance designed to fill the gap for homeowners who couldn't get coverage or whose premiums jumped to $15,000 or more. The problem is that the fair plan hasn't been run well. It's underfunded, meaning the balances owed are more than the premiums being collected. So while you can get coverage in higher-risk areas, the insurance is expensive, and the program itself is on shaky financial ground. " You can't keep premiums the same when the things you're insuring have doubled in value. " 3. A four-year rate freeze is now catching up with everyone. This is the one that explains why so many people are seeing their bills spike all at once. In 2020, because of COVID, the state of California locked rate increases. Insurers who were still in the state could not raise their premiums. That freeze stayed in place from 2020 all the way until 2024. Now think about what happened during that time. Home prices increased maybe 30%. The cost of building went up 30 to 40%. The cost of trucks and cars went up 30 to 40%. But insurance premiums stayed flat. When the freeze lifted in 2024, insurers had to reset their rates to reflect four years of rising costs all at once. That's why so many people opened their renewal and thought, "My insurance just doubled." It did, and it actually makes sense when you look at the math. You can't keep premiums the same when the things you're insuring have doubled in value. And it's not over yet. I'm estimating another 30% to maybe 40% in price increases over the next two years. Here's how you can save money. If you're in a high-risk fire area like Folsom, El Dorado Hills, Shingle Springs, or Granite Bay, you have options beyond the FAIR plan. There are state-accepted insurance carriers like State Farm where you can use the FAIR plan as your fire coverage and then add what's called a wrap policy from the carrier for your other coverage. But here's the tip most people don't know about. There are next-tier insurance carriers like Delos that can cover you in high-risk fire areas without the fair plan at a much lower cost. These carriers aren't backed by the state of California, but they are backed by multi-billion dollar insurance underwriters, so the risk of them going bankrupt is extremely low. This approach can save you 40% to 50% on fire insurance in high-risk areas. You can also look at lowering your water coverage for floods and installing a meter at your water main that shuts off the flow of water if you have a leak. There are some practical ways to bring your costs down if you know where to look. Insurance is going to be a major issue in California for the foreseeable future. If you h ave questions about how this affects your home's value, your buying or selling plans, or just want to talk through your options, reach out. You can call me at (916) 862-5463 , email me at Steve@homesbyelevate.com , or visit homesbyelevate.com .

Don’t Let the PMI Trap Stop You From Building Wealth!

By Steve LaMothe • March 13, 2026

Many buyers wait years to avoid PMI, but that delay can cost far more than the temporary monthly expense. Many buyers believe they must save a full 20% down payment before buying a home. It sounds like the responsible choice, so people often delay their plans until they reach that number. The problem is that waiting to avoid PMI can keep buyers on the sidelines much longer than they expect. I recently spoke with a first-time buyer who almost purchased a home about five years ago. She decided not to move forward because she didn’t want to pay PMI. Her goal was to save enough to put 20% down. Today she’s still renting, and that situation highlights something many buyers don’t realize. Waiting to avoid PMI can sometimes cost far more than paying it for a short period of time. What is PMI? PMI stands for private mortgage insurance. Lenders require it when a buyer puts less than 20% down on a conventional loan. The insurance protects the lender if the borrower defaults on the loan. In most cases, PMI costs between about $100 and $300 per month, depending on the loan amount and the size of the down payment. Buyers who put 5%, 10%, or 15% down typically have PMI included in their monthly payment. Because of that extra cost, many buyers assume they should wait until they’ve saved 20%. However, that decision often delays homeownership longer than expected. A PMI doesn’t last forever. One of the most important things to understand is that PMI is usually temporary on conventional loans. Once a homeowner reaches 20% equity, PMI can be removed. Equity builds through regular mortgage payments and possible increases in property value When those factors combine, and the loan reaches 20% equity, the homeowner can request that the lender remove PMI, sometimes after completing an appraisal. For example, if PMI costs $200 per month, that equals $2,400 per year. After a couple of years, the homeowner may be able to remove it once the equity requirement is met. " Paying PMI for a few years may cost a few thousand dollars, but waiting to buy can mean missing out on years of home equity growth. " The cost of waiting. The bigger issue is the opportunity cost of waiting. Saving 20% down often takes longer than planned because everyday expenses and unexpected costs slow the process. What buyers expect to accomplish in a couple of years may turn into five or even ten. During that time, home prices may increase, which means the same home may cost more later. While someone tries to avoid paying a few thousand dollars in PMI, they may miss the chance to build tens of thousands of dollars in home equity. What buyers should focus on? Instead of asking how to avoid PMI, buyers should focus on whether they can comfortably afford the home and the monthly payment. If the payment fits within the budget and the buyer is financially stable, PMI shouldn’t be the factor that stops them from buying. In many cases, it’s simply a temporary cost that allows someone to enter the market sooner and start building equity. PMI gives buyers a practical way to enter homeownership sooner without waiting years to save a full 20% down payment. While it does add an extra monthly cost, that cost is often temporary and may be far less than the equity a buyer could miss by waiting too long to purchase. Understanding how PMI works, when it can be removed, and how it affects the full monthly payment can help buyers make a more confident and informed decision. If you need more information about how PMI works or want help reviewing your options, reach out at (916) 862-5463 or visit homesbyelevate.com . Starting the conversation early can help you understand what’s realistic for your budget and whether buying sooner makes sense for you.

You Have 2 Months To Get FREE Down Payments!

By Steve LaMothe • February 16, 2026

The California Dream for All program returns with limited funding. It’s a chance to get state support with your down payment so you can step into your first home sooner. Wondering how to get a big boost on your first home without taking on a huge loan? If you’ve been searching for smart ways to step into your first home sooner, I have good news for you. The California Dream for All program is a first-time homebuyer loan that created major excitement when it first launched a couple of years ago, with $100 million in state funding fully claimed in just one week. The program helps first-time buyers with down payments to make homeownership more accessible, and thousands of applicants across California quickly took advantage of it. There were also lessons learned along the way, including cases where higher-income applicants received loans they shouldn’t have, which helped shape how the program is run today. Now that the California Dream for All program is returning in 2026, here is what you need to know. 2026 program window. On February 24, 2026, a new application window will open. First-time homebuyers who are interested should prepare to act quickly, because the available funding will likely be claimed fast. It is important to gather necessary documents and information in advance to increase the chances of qualifying. " The California Dream for All program helps first-time buyers with down payments, making homeownership more accessible. " How it works. This program is a shared equity loan. The state provides up to 20% of the down payment, with a maximum of $150,000. There are no monthly payments and no interest while the homeowner owns the property. When the home is sold, a portion of the equity goes back to the state, and the homeowner keeps the remaining equity. This allows buyers to enter homeownership with a lower upfront cost and still benefit from future appreciation. Eligibility requirements. Applicants must be first-generation and first-time homebuyers, meet income limits of roughly $125,000 to $150,000, and be California residents purchasing a primary residence. If the home is refinanced in the future, the shared appreciation must be repaid to the state. The California Dream for All program gives first-time buyers a rare opportunity to enter homeownership with state assistance, make no payments while owning the home, and benefit from future appreciation. It’s important to act quickly because funding is limited and will likely be claimed fast. Preparing financial information in advance and working with a knowledgeable lender can help ensure a smoother process and clarify how shared appreciation works. If you need more information about the program or want help preparing, reach out at (916) 862-5463 or visit homesbyelevate.com . Starting the conversation early can help you take full advantage of this opportunity.

This Tax Strategy Will Save You Thousands

By Steve LaMothe • February 9, 2026

Selling a high-value home? Proposition 19 can shield you from a property tax shock on your next purchase. Start planning your transition now. Are you worried that moving to a new home could cost you more in taxes than you expect? I’ve seen it happen a lot in California: people stuck in homes that are way bigger than they need, just because selling and buying somewhere else would spike their property taxes. That’s exactly what Proposition 19 was designed to fix, and understanding it can make a big difference if you’re thinking about moving or planning for retirement. Here’s what you need to know. What is Proposition 19? Prop 19 passed back in 2020, and it deals with transferring your tax basis from the home you currently own to a new home you want to buy. Before this law, if you wanted to sell your home in a high-cost area, you couldn’t take your old tax basis with you. That meant many homeowners were trapped, paying much higher taxes if they moved. Why prop 19 matters. For example, if you bought your home 30 years ago for $200,000 and it’s now worth $1.5 million, your property taxes might only be around $4,000 a year due to California’s limits on annual increases. Buying a new $1 million home could push your taxes up to $12,000 a year, creating a big barrier for older homeowners. Prop 19 solves this by letting you transfer your existing tax basis to a new home, making it easier to downsize and increasing available inventory in the market. " Downsize or relocate without higher taxes thanks to Prop 19. " Who qualifies. To use Prop 19, you generally need to be 55 or older. Exceptions exist for people with disabilities and disabled veterans under 55, but it’s still important to check the rules. Inherited homes, especially those in a trust, have additional considerations, so working with a tax professional is recommended before making any moves. Rules and requirements. There are a few rules to keep in mind. You must buy your new home within two years of selling your old one, so selling and buying at the same time isn’t required. This process isn’t automatic. You need to contact the county assessor and file the proper paperwork. Remember that your tax basis is different from your home’s market value. For example, if your tax basis is $350,000 and your home sells for $1.5 million, the transfer only applies to the $350,000 basis, not the full sale price. Key benefits. One of the best parts of Prop 19 is that you can transfer your tax basis up to three times. It’s not just a one-time opportunity anymore. You can use it to move closer to family or to a location with specialized healthcare, anywhere in California. This is a big change from the old system, which was county by county and didn’t always honor transfers. If you’re thinking about moving in 2026, it’s a good idea to start planning now. On average, it takes three to six months to get a home ready for sale. Taking the time to plan ensures you can take full advantage of Prop 19 and make a move that makes sense financially. Have any questions about moving, or unsure of what steps to take? Don’t hesitate to reach out at (916) 862-5463 or visit homesbyelevate.com . Starting the conversation now can make a big difference when planning your next move.

Big News in 2026: No Credit Scores to Qualify for a Mortgage?

By Steve LaMothe • January 8, 2026

The old rule that auto-rejected lower credit scores is officially gone. Here’s what this quiet but significant change means for your homebuying chances. Can you still qualify for a mortgage if your credit score isn’t perfect? That’s a question more buyers should be asking, because there’s been a quiet change in how mortgages are reviewed. The update came out a few months ago, but surprisingly, it hasn’t been widely talked about or clearly explained. Because of that, many buyers may not realize how this shift could affect them, so I’m sharing it with you. The new mortgage review process. Fannie Mae and Freddie Mac, the two major players that buy most mortgages, quietly changed their underwriting rules. Now, applications with credit scores under 620 can be reviewed and may qualify for a conventional mortgage. Before this, a score below 620 meant an automatic decline with no chance to explain your situation. Even someone with a 585 or 600 score would be shut out immediately. Credit scores don’t always tell the full story. Balances report on different dates, so your score might look lower than it really is, even if you pay responsibly. For example, I use several business credit cards and pay them off at the start of each month, but one card reports later in the month. Even though I’ve paid it down to zero, it can still show a high balance and temporarily lower my score. This change helps people with lower credit scores for reasons that aren’t real risks—like self-employed buyers or those with timing issues—by giving them a chance to have their applications reviewed instead of being automatically declined. " Even if you don’t qualify today, that doesn’t mean it’s the end of the road. " What this means for homeownership. This doesn’t mean unqualified buyers are suddenly getting approved. It simply opens the door to more realistic evaluations. Fewer automatic declines mean more people can be properly reviewed instead of dismissed based on one number. Some people worry this could lead to risky lending, but I don’t see it that way. Underwriting still exists, and lenders are still evaluating risk. This change just removes the hard stop that prevented otherwise responsible buyers from even being considered. If owning a home is something you want someday, the biggest takeaway is this: it’s worth checking to see if you qualify, no matter what your credit score is. Now there’s a much stronger case for at least having the conversation. Even if you don’t qualify today, that doesn’t mean it’s the end of the road. You can put together a plan to work toward it and understand exactly what needs to change to get there. I’m not a lender, and this isn’t lending advice. I’m simply sharing a recent change that I think is important for buyers to know about. If you want to learn more or see how this applies to you, call us at (916) 862-5463 or homesbyelevate.com . Let’s put together a plan to help you get your dream home.

A Simple Guide to Capital Gains Exclusions for Home Sellers

By Steve LaMothe • December 9, 2025

Capital gains exclusions let many sellers keep up to $500,000 tax-free, helping protect the equity they built. Most people never talk about the one rule in real estate that can help you keep more money than almost anything else, yet it plays a significant role in how homeowners build real wealth. Capital gains exclusions are simple, legal, and available to almost every homeowner in the country. However, many sellers don't fully understand how they work or why they matter. Here’s everything you need to know about capital gains and how you can use it to your advantage when the time comes to sell your home. What are capital gains? Capital gains are the profit you make when something you bought increases in value, and this gain is not earned through employment or wages. If you buy a home for $100,000 and later sell it for $200,000, the extra $100,000 you receive is considered a capital gain. The government taxes these gains at lower rates than regular income because investing in assets like homes and stocks helps you grow your savings and also supports the economy by keeping money moving. How do capital gains exclusions work for homeowners? The real power shows up when you sell your primary home and qualify for a capital gains exclusion. The IRS allows single homeowners to exclude up to $250,000 in gains from taxes, while married couples can exclude up to $500,000 because each spouse receives a $250,000 allowance. This can have a major impact on how much money you keep when you sell. "Understanding capital gains rules helps sellers protect their equity and avoid paying taxes they may not actually owe." Imagine buying a home for $100,000 and selling it years later for $600,000. Your gain is $500,000, and a married couple in this situation would owe nothing in capital gains taxes. You walk away with the full amount and keep every dollar. It is one of the few ways in America to earn a large profit and pay no taxes on that growth, which is why homeownership is such an effective wealth-building tool. When do taxes apply to capital gains? You only pay taxes on the portion of your gain that exceeds the exclusion. If you sold the same home for $700,000, your gain would be $600,000. A married couple would exclude $500,000 and owe capital gains taxes on the remaining $100,000. These taxes are still lower than ordinary income taxes, but the cost can be high. In California, it is common for sellers to pay between 25% and 35% in combined state and federal taxes on the taxable amount. Without the exclusion, many homeowners would lose a large portion of their equity to taxes. Why does it matter for wealth building in real estate? The capital gains exclusion is one of the most substantial financial benefits tied to homeownership because it allows you to build equity, keep more of your earnings, and use those gains to move into your next home. This advantage does not exist in the stock market, where every gain is taxed. Your primary home is one of the few assets that let you grow your money tax-free when you qualify for the exclusion. This rule applies only to your primary residence and doesn't apply to rental properties. Still, for many homeowners, this is a key path to long-term wealth and financial stability. If you have questions about capital gains or want to understand how this applies to your situation, feel free to reach out at (916) 862-5463 or visit homesbyelevate.com . I'd be happy to help you ensure you understand everything you need to maximize your capital gains.

What To Consider Before Getting a 50-Year Mortgage

By Steve LaMothe • November 21, 2025

You might be able to afford a larger home or a home in a better neighborhood, but there’s a catch: you’ll pay more interest over time. Are you curious about how a 50-year mortgage could impact your future home-buying plans? While it sounds like a great way to stretch out payments and afford a larger home, it’s important to understand both the benefits and drawbacks before diving in. Let’s break down everything you need to know about this long-term mortgage option and whether it’s a good fit for you in today’s housing market. What is a 50-year mortgage? It’s a loan where you pay off your home over 50 years instead of the usual 30 years. The biggest difference is that the payments are stretched out over a longer period, which can help lower your monthly payments. But here’s the catch: You’ll pay much more in interest over time. Interest is the extra money you pay the bank for borrowing their money. The longer you borrow, the more interest you pay. How this helps you buy a home. One of the main reasons someone might consider a 50-year mortgage is to make homeownership more affordable. If you're struggling to make higher payments on a traditional 30-year mortgage, a 50-year mortgage could lower your monthly costs. This means you might be able to afford a larger home or a home in a better neighborhood. For some people, this can be a way to enter the housing market when they wouldn't have been able to afford it otherwise. "The right choice depends on your personal goals, your ability to pay, and how long you plan to stay in the home." What are the risks? While the lower monthly payments sound good, there are some important risks to consider. First, since the loan is spread out over 50 years, you’ll end up paying a lot more money in interest over the life of the loan. Even though your monthly payment is lower, the total amount you pay to the bank will be much higher than if you took a 30-year mortgage. Also, it's important to remember that most people don’t stay in the same house for 50 years. If you plan to move or sell your home before then, you may not see the full benefit of the lower payments. Who should consider this option? This could be a good option for people who are struggling to afford a home with a traditional loan, but it’s not right for everyone. If you’re planning to stay in one place for a long time and can handle the higher total cost, it could make sense. But if you think you’ll move in the next few years, you might be better off with a traditional 30-year mortgage, where you’ll pay less in interest over time. Is it the right choice for you? Choosing a mortgage is a big decision, and a 50-year mortgage is just one option. It can help make homeownership more affordable in the short term, but it also comes with long-term costs that you should carefully consider. The right choice depends on your personal goals, your ability to pay, and how long you plan to stay in the home. If you're interested in learning more about mortgage options or need help navigating the home-buying process, I can help. Call me today at (916) 862-5463 or email me at STEVE@HOMESBYELEVATE.COM to get started on your journey to homeownership!

Sacramento Homebuyers: Interest Rates Are Now Under 5%!

By Steve LaMothe • November 6, 2025

Rates just dropped, and it’s sparking buyer activity across Sacramento. Find out how to take advantage before the rush. Is now a good time to buy or sell in Sacramento? 2025 is almost over, and it feels like the year just flew by. You might’ve heard lately that the Fed has lowered interest rates. All year, I’ve been calling the market sluggish, and that’s still true. Homes are taking longer to sell, around 50 to 55 days on average. Prices are adjusting too, with average sales down 1% to 2%, meaning some neighborhoods are still seeing values decline. As the holidays approach, I want to share some updates about the Sacramento real estate market. Interest rate trends. Interest rates have dropped a lot since January. Back then, rates were between 7% and 8%, which is very expensive given average Sacramento home prices around $500,000 to $550,000. Now, we’re seeing rates consistently in the fives. On conventional loans, buyers are locking rates around 5.5% to 5.8%, and many are getting 6% or below. Sometimes you might pay a small fee to get under 6%, but almost everyone is well below 6.5%. Rates may continue to drop gradually over the next year, maybe a quarter point every couple of months, but the Fed is being careful not to push prices back up too fast. "The holiday season can be a smart time to buy, with fewer people are looking during this period." Implications for buyers. For buyers, this is great news. Inventory has increased and is almost back to pre-pandemic levels, giving you more choices and less competition. The holiday season can also be a smart time to buy since fewer people are looking during this period, which could mean some great deals. Remember, you can lock rates in the fives now and refinance next year if rates drop further. Implications for sellers. Sellers shouldn’t expect prices to skyrocket immediately, but lower interest rates will bring buyers back into the market. That makes fall or the fourth quarter a potentially good time to sell, with motivated buyers looking for homes at manageable rates. Now, for a little holiday fun, our free pie event is back! From November 19th to 21st, you can come pick up a homemade pie. We’ve been doing this for 10 years, and it’s always a favorite. We’re making 150 pies, but spots are filling fast, so check your email or mailbox to reserve yours. It’s a fun tradition, and we love seeing everyone in person. Whether you’re thinking about buying, selling, or just staying informed, we’re always here to help. Visit our website at HomesByElevate.com for more info. We can’t wait to see you at our pie event and connect before the year wraps up!

How To Get an Interest Rate at 4% or Less

By Steve LaMothe • October 17, 2025

Buyers can cut costs by assuming existing loans and focusing on homes with low, government-backed mortgages. Are you struggling to find a Sacramento home with a low interest rate? If you’ve been looking at homes lately, you’ve probably noticed how tough affordability is right now. But the good news is there are ways to still land a home with an interest rate under 4%. At Elevate Realty Group, we’re compiling thousands of properties that qualify for rates as low as 2.5% or 3.54%, and I want to walk you through two ways to make it happen. 1. Explore VA loans. If you’re a veteran and qualify for a VA home loan, there’s a great opportunity to get a low interest rate. We can look for homes that already have VA loans with rates below 4%, even if those homes aren’t currently for sale. Then, we focus on the neighborhoods you want to live in and reach out to those homeowners directly. With our 4% guarantee, we can help VA homebuyers secure a home with an interest rate under 4%. 2. Find assumable homes. For everyone else, like conventional and FHA buyers, there are still opportunities to get low rates. In the Sacramento area, I’d say that 60% or more of homes have interest rates below 4%. Many homeowners stay in their current homes because they don’t want to sell and get a higher rate of around 7%. By targeting homes with government-backed loans at 4% or less, we can make offers above the market value that are very attractive to sellers. "There are ways to still land a home with an interest rate under 4%." For example, if a home is listed at $600,000 with a 3.5% FHA loan, we might offer $640,000. Even with the higher price, your monthly payment at 3% could be $400 to $500 less than paying market value at today’s rates. Important considerations. There are a few important things to know if you go this route. First, you still have to qualify for the mortgage, which means having a down payment and meeting the usual approval requirements. You also need to understand the details of assuming the existing mortgage and paying the difference between the mortgage balance and your purchase price. Second, this approach takes time. We usually plan for about 90 days to complete it, so it’s not a quick 14- or 21-day close. At Elevate Realty Group, we have very specific and creative ways to make homeownership more affordable. Our goal is to help you capture the dream of owning a home and start building equity at a lower cost. If this sounds like something you want to explore, reach out to us at homesbyelevate.com or call us at (916) 862-5463 or visit HomesByElevate.com . We’re happy to help you.

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