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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What is my Folsom home worth in 2026-and how do i actually maximize it?

By Steve LaMothe • June 18, 2026

New Right now, thousands of Folsom homeowners are typing the same question into Google: "What is my home worth?" And thousands more are on Reddit, Nextdoor, and real estate forums asking some version of: "Should I sell now, wait, fix it up first, or just take a cash offer and be done with it?"

Top 3 reasons buyers cancel sales in Folsom

By Steve LaMothe • June 9, 2026

Discover the top 3 reasons home sales fall through in Folsom, CA — and how Elevate Realty Group's exclusive programs protect your sale from start to close.

The Two Ways Sellers Lose When They Skip Repairs

By Steve LaMothe • June 9, 2026

In today's market, a lot of homes simply aren't selling. The ones that do are the ones that show ready and priced right. Here's how to make sure yours is one of them. It's one of the most important things you can do when selling a house. Think of it like a car. You fix it up and detail it before you sell it, and you get a better price. The same principle applies to your home, and in today's market, it matters even more than it used to. Why today's rate environment changes the equation. With interest rates around 7% right now, buyers are stretching to put down as much as they can just to keep their monthly payments manageable. The loan balances are expensive to carry. So when a buyer walks into a home that needs $40,000 in work, whether that's flooring, paint, dry rot repair, whatever it is, that $40,000 has to come from somewhere. And most of the time, it comes right out of their down payment. When a buyer has to take $40,000 of their own cash and put it toward repairs instead of their down payment, their monthly payment goes up by $700 to $1,000. That's not a small number. That's the difference between a buyer who can afford your home and one who walks away. There are really two ways sellers lose when they skip the renovation. Buyers aren't going to offer you what you think the house is worth. They just can't afford to. Making repairs with their own cash is expensive and directly affects what they can afford for the home. The money for repairs comes right out of the money they have available for the purchase. You lose control of the cost. If you don't handle the repairs upfront, you're leaving yourself open to whatever the buyer thinks the costs are. And here's the reality. If I'm representing a buyer and we're looking at a house that needs a lot of work, we're always going to ask for more money than we think the repairs will cost, just in case there are things we don't know about yet. That's standard. So, as the seller, you end up paying inflated prices through buyer credits that you could have controlled for less by doing the work yourself upfront. How our concierge program changes the math. This is exactly why we built our concierge program. With over 900 sales and 16 years of vetting contractors, I've built a network of vendors who offer wholesale pricing because we send them consistent volume. We've tracked results across all those projects, and our sellers have received over $7 million in increased equity by making the repairs before listing. That's not an overpromise. That's data from 900 transactions. " If you don't control the cost of repairs upfront, the buyer will, and they always ask for more. " And here's how it actually works. When you work with us, you don't have to interview half a dozen painting companies and hope they show up. I've already done that over a 16-year career. We constantly cut vendors who don't answer the phone, don't offer good pricing, or don't do quality work. We shop out our estimates to hold people accountable. We introduce you to multiple vendors so nobody gets comfortable. And because we're their biggest source of business, when something goes wrong, and something always does, I make one call and they're there in the morning. That's the kind of accountability a regular homeowner just doesn't have. We're also renegotiating with vendors right now because the post-COVID price inflation is easing. Contractors want to be busy. They're not as booked as they were two years ago. So we're getting better deals, and those savings go straight to you. Why most sellers don't do it and why that's a mistake. For most people, the reason comes down to one of two things. Either they don't want to deal with the hassle of finding and managing contractors, or they think they can't afford to make the repairs. The hassle part is what we solve. Estimates within two days. Work starts within two to three days after you approve a vendor. My commitment is that we get this done twice as fast as you could on your own. We're not saying you can't do it yourself. You absolutely can. But you'll usually pay more, and it'll take a lot longer. When you run the numbers, using our program is almost free because the extra equity you gain far outweighs the cost of the repairs. The risk of doing nothing. About 30% of homes in today's market are not selling. If you throw your house on the market in poor condition and it's not priced right, there's a real chance it just sits. Your goals aren't achieved. You've gotten the dog and the kids out of the house for three months of showings, and you have nothing to show for it. That's not a risk worth taking when the solution is right in front of you. If you're thinking about selling and you want to know which repairs would actually move the needle on your home's value, give me a call at (916) 862-5463 , email me at Steve@homesbyelevate.com , or visit homesbyelevate.com . We'll walk through what makes sense for your home and get you a plan that puts the most money in your pocket.

Should you improve or repair your home before selling your Folsom home?

By Steve LaMothe • June 3, 2026

These strategies will save you tens of thousands when selling

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.

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