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FHA Loans in Pasadena
FHA loans work well in Pasadena where older housing stock meets modern buyer budgets. The 3.5% down payment requirement opens doors in neighborhoods that conventional loans price out.
Condos near Old Town and craftsman homes in neighborhoods like Madison Heights qualify for FHA financing. Properties built before 1978 need lead paint disclosures, common with Pasadena's historic character.
Multi-unit properties up to fourplex qualify if you live in one unit. That matters in Pasadena where duplex conversions are common.
You need a 580 credit score for 3.5% down. Scores between 500-579 require 10% down, but most lenders won't touch those deals.
Debt-to-income can stretch to 50% with compensating factors. Two years of W-2 income works, or one year if you stayed in the same field.
Bankruptcy needs two years of seasoning. Foreclosure requires three years. Those timelines beat conventional loans by a year or more.
FHA approval is straightforward, but Pasadena properties need appraisals that clear FHA condition standards. Deferred maintenance kills deals.
We work with lenders who understand Los Angeles County appraisal timelines and have relationships with FHA appraisers in the area. That speeds up closings by 7-10 days.
Not all condo buildings are FHA-approved. We verify HOA certification before you write an offer to avoid wasted inspections and appraisal fees.
FHA mortgage insurance premiums add $200-300 monthly on typical Pasadena purchase prices. That upfront premium gets rolled into your loan, but monthly premiums last 11 years minimum.
Sellers in competitive Pasadena neighborhoods sometimes resist FHA offers because appraisals are stricter. We position offers to overcome that bias.
If you have 5% down and 620+ credit, run both FHA and conventional scenarios. Conventional might cost less long-term even with higher rates.
VA loans beat FHA if you're military-affiliated - no down payment, no mortgage insurance. USDA doesn't work in Pasadena since it's not a rural area.
Conventional loans require 3% down now, nearly matching FHA. The difference is credit standards and mortgage insurance duration.
FHA accepts lower scores and recent credit events. Conventional drops mortgage insurance once you hit 20% equity. Pick based on your profile, not assumptions.
Pasadena's FHA loan limits match LA County conforming limits. You can borrow up to the standard conforming limit on single-family homes.
Historic districts require preservation approvals for exterior changes. FHA appraisers note needed repairs, but you can't always make them on protected properties.
Properties near the Rose Bowl or in earthquake retrofit zones need engineering inspections. Factor that into your closing timeline and budget.
Most lenders require 580 for 3.5% down. Scores of 500-579 need 10% down, but few lenders approve those applications.
Only if the HOA is FHA-certified. We verify certification before you make an offer to avoid wasting inspection and appraisal costs.
Standard FHA requires livable condition. FHA 203k renovation loans work for fixers, but add complexity and time to closing.
Expect 0.85% annually on your loan amount, plus 1.75% upfront. That's roughly $200-300 monthly on typical purchase prices.
Many do, especially in starter home price ranges. Strong earnest money and clean financing letters help overcome seller concerns.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.