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in Pasadena, CA
Pasadena's housing market includes everything from Craftsman bungalows under $800K to multi-million dollar estates in San Marino adjacent neighborhoods. The line between conventional and jumbo territory matters here—cross it and your rate, down payment, and approval odds all shift.
The conforming loan limit for Los Angeles County changes yearly. Most Pasadena buyers shopping above that threshold need jumbo financing, which follows different underwriting rules than standard conventional loans.
Conventional loans work for purchases within conforming limits—currently under $806,500 in Los Angeles County for single-family homes. They're sold to Fannie Mae or Freddie Mac, which standardizes guidelines across lenders and keeps rates competitive.
You can put down as little as 3% with strong credit, though 20% avoids mortgage insurance. Most lenders want 620+ credit and debt-to-income under 45%. These loans dominate South Pasadena and East Pasadena where median prices still fit conforming bounds.
Jumbo loans finance anything above conforming limits—common in Pasadena neighborhoods like Linda Vista and areas near the Huntington Library where million-dollar properties are standard. No government backing means lenders hold more risk, so they price accordingly.
Expect 10-20% down minimum depending on loan size and credit profile. Most jumbo lenders want 700+ credit scores and reserves covering 6-12 months of payments. Rates run slightly higher than conventional, though spreads narrow when you bring strong financials.
Down payment flexibility separates these products sharply. Conventional allows 3% down with PMI; jumbo rarely goes below 10% and many lenders want 15-20% on loans over $1.5 million. That's $150K-$300K cash for a $1.5M Pasadena property versus potentially $45K on a $750K home.
Underwriting gets pickier as loan amounts climb. Jumbo lenders scrutinize income documentation harder, want cleaner credit histories, and require proof you can weather rate adjustments or income disruptions. Conventional guidelines stay consistent whether you're borrowing $400K or $800K.
Your purchase price makes the first cut. Shopping below $806,500 in Pasadena? Conventional wins on down payment flexibility and rate. Above that threshold, jumbo is your only option unless you increase your down payment to bring the loan amount under conforming limits.
If you're borderline—say buying at $850K—run both scenarios. Putting 20% down drops your loan to $680K, keeping you conventional. That saves you from jumbo's stricter credit and reserve requirements, even though your cash outlay increases upfront.
$806,500 for single-family homes in Los Angeles County. Anything above that requires jumbo financing unless you increase your down payment to stay below the limit.
Some lenders allow 10% down on jumbo loans up to $1-1.5 million with excellent credit. Larger loans typically require 15-20% down minimum.
Usually, but the spread narrows with strong credit and reserves. Rates vary by borrower profile and market conditions.
Conventional loans have more flexible credit and reserve requirements. Jumbo underwriting is stricter across income verification, credit history, and cash reserves.
Not necessarily. If you have strong financials, jumbo rates can be competitive. The key is whether you meet the stricter qualification standards comfortably.