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La Cañada Flintridge sits in the San Gabriel foothills with some of LA County's highest home prices. FHA loans get you in with 3.5% down, but loan limits cap at $1,249,125 for 2026.
Most homes here exceed FHA limits. You'll find better opportunities in older condos or smaller single-family homes near Foothill Boulevard.
This is a conforming loan market. FHA works best for first-time buyers targeting entry-level properties or buyers needing lower credit scores.
You need 580 credit for 3.5% down. Drop to 500-579 and the down payment jumps to 10%.
FHA accepts debt-to-income ratios up to 50% with compensating factors. You can include a co-borrower's income without adding them to title.
Gift funds cover the entire down payment. Sellers can contribute up to 6% toward closing costs.
Every major lender offers FHA, but pricing varies by 0.25% to 0.5% between shops. Credit unions often beat big banks on rates.
FHA requires an upfront mortgage insurance premium of 1.75% plus annual premiums. These don't drop off like conventional PMI.
Some sellers in La Cañada resist FHA offers. They worry about appraisal issues or assume buyers can't close. A strong pre-approval letter helps.
I see borrowers choose FHA when they have 620-680 credit and want the lowest down payment. Conventional requires higher scores for competitive pricing.
FHA's main advantage is flexibility. A 620 borrower with collections gets approved where conventional lenders say no.
The trade-off is permanent mortgage insurance on 3.5% down deals. Run the math: if you can do 10% down conventional instead, you might pay less monthly despite a slightly higher rate.
Conventional loans require 5% down but demand 620+ credit and cleaner files. FHA accepts more credit issues but charges lifetime mortgage insurance.
VA loans beat FHA if you're military-eligible. Zero down, no mortgage insurance, better rates. No contest.
Jumbo loans start where FHA stops. Most La Cañada homes need jumbo financing with 10-20% down and 700+ credit.
La Cañada Flintridge enforces strict property standards. FHA appraisers flag peeling paint, handrails, and roof issues that conventional appraisers overlook.
Older homes near Descanso Gardens often need repairs before FHA approval. Budget for seller credits or inspection contingencies.
HOA properties must be FHA-approved. Many smaller condo complexes aren't on the approved list. Verify before writing an offer.
Competition is fierce. Most buyers here use conventional or cash. Your offer needs clean pre-approval and flexibility on repairs.
$1,249,125 for single-family homes in LA County. Most properties here exceed this limit and require jumbo financing instead.
Yes, 580 qualifies for 3.5% down. Expect higher rates than 680+ borrowers, and some sellers may prefer conventional buyers.
Only if you put 10%+ down—then it drops after 11 years. With 3.5% down, it stays for the loan's life.
Some will, especially on condos or properties needing minor work. Strong pre-approval and quick closing help your case.
Not a traditional fixer. FHA requires homes to meet safety standards at purchase. Look into FHA 203(k) renovation loans instead.
FHA needs $31,500 down plus permanent MI. Conventional needs $45,000 down but MI drops at 78% LTV. Run both scenarios.
FHA Loans in La Canada Flintridge