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in Pasadena, CA
Both FHA and VA loans offer government backing, but they serve different borrowers with different requirements. FHA loans work for anyone who qualifies, while VA loans are exclusive to military members and veterans.
In Pasadena, these two options dominate the government-backed loan market. Understanding which program you're eligible for — and which saves you more money — changes your buying power significantly.
FHA loans require just 3.5% down with a credit score of 580 or higher. They're designed for first-time buyers and anyone who doesn't have a large down payment saved.
You'll pay an upfront mortgage insurance premium of 1.75% plus annual mortgage insurance. FHA works for primary residences only, including single-family homes, condos, and 2-4 unit properties in Pasadena.
Credit flexibility is the main draw. FHA approves borrowers with past bankruptcies, foreclosures, and lower credit scores that conventional lenders reject.
VA loans require zero down payment and no mortgage insurance. You need a Certificate of Eligibility from the VA, which verifies your military service or surviving spouse status.
There's a VA funding fee of 2.3% for first-time use with zero down, but it can be rolled into the loan. Disabled veterans often get this fee waived entirely.
VA loans in Pasadena work for primary residences up to 4 units. The seller can pay all your closing costs, which means you can buy with almost nothing out of pocket.
Eligibility splits these programs completely. FHA accepts anyone who meets credit and income requirements, while VA demands military service connection.
Down payment and insurance create the cost gap. FHA needs 3.5% down plus ongoing mortgage insurance that never drops off. VA requires nothing down and charges no monthly insurance.
VA typically offers lower rates because the government guarantee is stronger. On a Pasadena home, that rate difference plus the lack of mortgage insurance can save hundreds monthly.
If you qualify for VA, use it. The zero down payment and no mortgage insurance beat FHA in almost every scenario for eligible borrowers.
FHA makes sense when you're not military-connected or when the property doesn't meet VA appraisal standards. Some older Pasadena homes need repairs before VA will approve them, while FHA is more lenient.
Consider your timeline too. VA appraisals take longer in Los Angeles County right now, which matters in competitive Pasadena neighborhoods where speed closes deals.
Yes, but it rarely makes financial sense. VA's zero down and no mortgage insurance save significantly more than FHA over the loan term.
Many prefer conventional, but between these two, FHA often edges out VA due to faster appraisal timelines. Strong financing terms matter more than loan type.
VA appraisals scrutinize condition more closely than FHA. Older Pasadena homes sometimes need repairs to meet VA standards that FHA would approve.
Yes. Both FHA and VA allow 2-4 unit properties as long as you occupy one unit as your primary residence.
You pay 1.75% upfront plus 0.55%-0.85% annually based on down payment size. This continues for the life of the loan on most FHA mortgages.