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Pasadena sits firmly in an urban USDA-ineligible zone. The program targets rural and suburban areas, which excludes most of Los Angeles County.
If you're set on Pasadena proper, USDA won't work. But some neighboring areas in LA County qualify—parts of the Antelope Valley and eastern county edges meet the rural definition.
Most Pasadena buyers looking at zero-down options shift to VA loans if they're veterans or FHA with down payment assistance programs. Those routes actually close in this market.
USDA Loans in Pasadena
USDA loans require household income below 115% of area median income. For LA County, that's roughly $115,000 for a family of four—rates vary by borrower profile and market conditions.
You need a 640 credit score minimum with most lenders. Some portfolio lenders go to 620, but expect rate bumps and stricter debt ratios.
The property must be in a USDA-eligible zone and serve as your primary residence. Investment properties and vacation homes don't qualify.
Local decision guide
Use this guide to connect usda loans eligibility, lender expectations, and local market factors before comparing payment options in Pasadena.
Pasadena sits firmly in an urban USDA-ineligible zone. The program targets rural and suburban areas, which excludes most of Los Angeles County.
If you're set on Pasadena proper, USDA won't work. But some neighboring areas in LA County qualify—parts of the Antelope Valley and eastern county edges meet the rural definition.
Most Pasadena buyers looking at zero-down options shift to VA loans if they're veterans or FHA with down payment assistance programs. Those routes actually close in this market.
USDA loans run through approved lenders, not direct government channels for most borrowers. We work with about 30 lenders who actively close USDA deals in Southern California.
Processing takes longer than conventional—figure 45 to 60 days minimum. USDA must approve both the borrower and the property, adding layers most loans skip.
Not every lender prices USDA competitively. We see rate spreads up to 0.5% between aggressive and passive lenders on identical borrower profiles.
Pasadena buyers who walk in asking about USDA usually haven't checked the eligibility map. We pull it up in the first five minutes—saves everyone time.
The real conversation becomes VA versus FHA with assistance grants. VA wins for veterans with zero down and no mortgage insurance. FHA with CalHFA or local programs works for non-veterans.
If you're flexible on location and want USDA, we look at Palmdale, Lancaster, or even Riverside County. But that's a different commute and lifestyle than Pasadena offers.
VA loans beat USDA for any veteran—zero down, no monthly mortgage insurance, better rates. USDA charges a 1% upfront fee and 0.35% annual premium.
FHA asks for 3.5% down but works anywhere in Pasadena. Pair it with CalHFA down payment assistance and you're close to zero out of pocket.
Conventional loans with 3% down programs skip the income limits USDA imposes. If you earn over $115,000, that's your only zero-restriction option besides VA.
Pasadena's median prices push past what makes sense for USDA income limits anyway. The math rarely works—qualified income doesn't support the payment on typical homes here.
LA County's USDA-eligible pockets sit 40+ miles from Pasadena. You're looking at Acton, Lake Hughes, or desert communities where prices drop significantly.
Local first-time buyer programs through the city and county offer down payment grants on FHA and conventional loans. Those actually apply in Pasadena and close faster than USDA.
No. Pasadena falls in a USDA-ineligible urban zone. The program requires properties in designated rural or suburban areas, which excludes most of Los Angeles County.
Antelope Valley communities like Palmdale and Lancaster qualify, about 45 miles north. Some eastern LA County pockets near the San Bernardino border also meet USDA requirements.
VA loans work for veterans with no down payment and lower costs. Non-veterans should explore FHA loans paired with CalHFA or local down payment assistance programs.
Yes. Household income caps around $115,000 for a family of four. That limit applies countywide, even in USDA-eligible zones outside Pasadena.
Plan for 45 to 60 days minimum. USDA requires separate approval for both borrower and property, adding time most conventional loans don't need.