Local construction financing from a Sacramento-based Certified Mortgage Advisor.
Ken Clark Jr. and the #ChampionsofLoans team at PRMG Mortgage are based on River Park Drive in Sacramento and help buyers, landowners, veterans, and builders finance new homes across Sacramento County and the surrounding region, from infill lots in the city to acreage in Wilton, Herald, and Sloughhouse.
Short answer: PRMG construction programs are available in California, including all of Sacramento County, subject to eligibility and program guidelines.
| Program | Often fits | Learn more |
|---|---|---|
| VA one-time close | Veterans building a primary residence; up to 100% financing for eligible veterans | VA construction |
| FHA one-time close | Buyers with smaller down payments; 3.5% minimum for eligible borrowers | FHA construction |
| USDA one-time close | Income-eligible buyers in eligible rural areas | USDA construction |
| Conventional one-time close | Primary or second homes, stronger credit, land equity | Conventional construction |
| Jumbo construction | Custom homes above conforming and high-balance limits | Jumbo loans |
| Investor ground-up / fix and flip | Builders and investors, business purpose | Builder construction . Fix and flip |
Not sure which fits? Start with the construction loan overview or the one-time close guide.
| Loan type | 2026 one-unit limit (Sacramento County) |
|---|---|
| Conforming (conventional) | $832,750 |
| FHA | About $791,200 (Sacramento MSA) |
| VA | No VA limit with full entitlement; conforming limit applies to partial entitlement |
| Jumbo | Above the conforming limit |
Verify current figures with the FHFA and HUD FHA lookup. Limits reset each January.
Short answer: it depends on where the lot is. Lots inside a city go through that city's building department. Lots in unincorporated Sacramento County go through the county's Building Permits and Inspection Division.
For one-time close loans in California, permits are typically required before closing, so start the permit process early. Construction loan approval runs alongside permitting, and it cannot finish without it.
Short answer: rural lots in south and east Sacramento County often rely on a private well and septic system, which are permitted through the Sacramento County Environmental Management Department.
Sacramento County EMD runs the Well Program and the liquid waste (septic) program. Expect soil or percolation testing for septic design, and well yield and water quality testing. These costs belong in your builder's line-item budget. They are where rural budgets most often run over. See buying land and building for the full lot checklist.
Short answer: check the lot's fire hazard severity zone before you buy or finalize plans. The State Fire Marshal released updated maps for local responsibility areas in 2025.
Homes in higher hazard zones must meet wildfire-resistant construction standards, which affect materials, vents, and defensible space, and can affect insurance availability and cost. Look up any address on the Office of the State Fire Marshal Fire Hazard Severity Zones page. This matters most on foothill and east-county lots and in neighboring Placer and El Dorado counties.
Short answer: parts of the Sacramento region, including areas near the American and Sacramento rivers and parts of Natomas, are in FEMA-mapped flood zones. If a financed home is in a special flood hazard area, flood insurance is required.
Check the lot on the FEMA Flood Map Service Center. Flood zone location can affect foundation design, elevation requirements, insurance cost, and your monthly payment.
Short answer: new homes permitted on or after January 1, 2026 must meet California's 2025 Building Energy Efficiency Standards, which generally require solar photovoltaic systems on new single-family homes, with some exceptions. Battery storage is not required for single-family homes but can earn compliance credit.
Make sure solar is in the builder's contract and budget. Details: California Energy Commission 2025 Energy Code. Power in most of Sacramento County is provided by SMUD.
Short answer: if you own a lot in the Sacramento area, its equity may count toward your down payment and closing costs on a construction loan, depending on the program.
Many Sacramento-area landowners bought acreage years ago or inherited family land. See using land equity for a construction loan.
Short answer: your builder must be licensed in California and complete builder registration, which is a documentation review for program eligibility, not an endorsement.
Check any California contractor on the CSLB License Check. VA builds also require a VA builder ID. Details: builder registration.
Much of the region's new-home construction happens in neighboring counties. Ken also helps buyers building in Placer County (Roseville, Rocklin, Lincoln, Auburn), El Dorado County (El Dorado Hills, Cameron Park, Placerville), and Yolo County (Davis, Woodland, West Sacramento). Each county has its own permitting office and rural lot rules.
Educational illustration only. Not an actual client, loan offer, or commitment to lend.
A veteran inherits two acres in Wilton, appraised at $260,000, with no loan. The builder's fixed-price contract is $640,000, including well, septic, driveway, and solar, and the as-completed value is $900,000. With a VA one-time close loan, the land value may count toward the project, permits through Sacramento County and septic and well approvals through EMD are completed before closing, and in most cases no mortgage payments are due until the home is finished.
Answered by Ken Clark Jr., Certified Mortgage Advisor. Program availability and requirements vary and are subject to change.
Yes. PRMG construction programs, including VA, FHA, USDA, conventional, and jumbo construction, are available in Sacramento County and throughout California, subject to eligibility and program guidelines.
Yes. Eligible veterans may use VA one-time close financing in Sacramento County, subject to entitlement, builder requirements, and program guidelines.
For one-time close loans in California, building, well, and septic permits are typically required before closing.
Lots inside a city use that city's building department. Lots in unincorporated Sacramento County use the Sacramento County Building Permits and Inspection Division.
The Sacramento County Environmental Management Department runs the well and septic (liquid waste) programs.
California's 2025 energy code, in effect since January 1, 2026, generally requires solar photovoltaic systems on new single-family homes, with some exceptions.
Look up the address on the Office of the State Fire Marshal Fire Hazard Severity Zones page. Updated local responsibility area maps were released in 2025.
If the home is in a FEMA special flood hazard area and financed with a federally backed or regulated loan, flood insurance is required. Check the FEMA Flood Map Service Center.
The 2026 conforming limit is $832,750 for a one-unit home, and the FHA limit for the Sacramento area is about $791,200. Verify current limits before relying on them.
Possibly, in USDA-eligible rural areas for income-eligible buyers. Check the specific address on the USDA eligibility map.
Often yes. Equity in land you own may count toward the down payment and closing costs, depending on the program.
Guidelines change. Verify current program requirements with Ken Clark Jr. before relying on them for a transaction.
Disclaimer: This content is for educational purposes only and is not a commitment to lend, a guarantee of approval, or a rate quote. Loan programs, down payment requirements, terms, and eligibility depend on borrower, property, project, builder, and program qualifications, are subject to underwriting, and vary by state. Not all applicants or projects will qualify. Builder registration is a documentation review for program eligibility and is not an endorsement of any builder. Equal Housing Opportunity. Paramount Residential Mortgage Group, Inc. (PRMG), NMLS #75243. Ken Clark Jr., NMLS #225375. PRMG is licensed in 49 states, excluding New York.
Certified Mortgage Advisor and Branch Manager at PRMG Mortgage (NMLS #75243). 28 years in mortgage lending. Specializes in FHA, VA, conventional, DPA, jumbo, Non-QM, renovation, and construction financing for buyers and investors in Sacramento, New Jersey, and nationwide. PRMG is licensed in 49 states, excluding New York. Three-time Gold Award winner for Highly Reviewed Mortgage Team in Sacramento (2023, 2024, 2025). NMLS #225375.
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