Loading
VA Loans in Pasadena
Pasadena's housing market sits in Los Angeles County's higher price range. VA loans remove the down payment barrier that stops most first-time buyers.
Many veterans underestimate how much home they can afford without saving 20%. The VA guarantee lets lenders approve larger loans with zero cash upfront.
Pasadena neighborhoods near Old Town and South Lake compete with conventional buyers. VA financing levels the playing field against cash-heavy offers.
You need a Certificate of Eligibility from the VA. Most veterans with 90+ days of active service qualify, plus National Guard with six years and surviving spouses.
Credit score minimums hit 580-620 depending on the lender. Income must cover the mortgage payment with a debt-to-income ratio under 41% in most cases.
No minimum income exists, but residual income standards apply. California requires higher monthly leftovers after housing costs than most states.
The property must pass VA appraisal standards. Pasadena's older housing stock sometimes needs repairs before the VA approves the loan.
Not all lenders handle VA loans well. Some avoid them entirely because the appraisal process takes longer and guidelines differ from conventional loans.
Credit unions often offer lower rates but cap loan amounts. National lenders approve higher amounts but charge more. We shop both for each deal.
The VA funding fee runs 2.3% for first-time zero-down buyers. Disabled veterans skip this cost entirely, saving thousands at closing.
Rates vary by borrower profile and market conditions. VA rates typically beat conventional loans by 0.25% to 0.5% with similar credit scores.
Veterans get talked into FHA loans by loan officers who don't understand VA benefits. FHA requires mortgage insurance forever on zero-down deals. VA never charges ongoing PMI.
Pasadena sellers sometimes resist VA offers assuming longer closings. We close VA loans in 21-25 days when the file is clean, matching conventional timelines.
The biggest mistake is using full entitlement on a starter home. You can buy again with remaining entitlement or after selling and restoring your benefit.
Appraisals kill deals when buyers don't inspect first. The VA appraiser flags peeling paint and safety issues that cost more to fix after you're in contract.
FHA loans require 3.5% down plus mortgage insurance that never drops off. VA loans cost nothing down with no monthly PMI, saving $300-500 monthly on typical Pasadena prices.
Conventional loans need 5-20% down and charge PMI below 20% equity. A $900K Pasadena home requires $45K-180K upfront versus zero with VA.
Jumbo loans start around $750K in Los Angeles County. VA jumbo loans exist but fewer lenders offer them, and rates climb above conforming limits.
Pasadena's Craftsman homes and older properties trigger VA appraisal repairs more often than new construction. Budget for paint, handrails, and roof issues before closing.
The VA loan limit is $806,500 for zero-down purchases in 2024. Above that amount, you make a 25% down payment on the difference, not the full price.
Los Angeles County processing runs slower than neighboring counties. Allow 4-5 weeks for purchase contracts, not the 3 weeks you'd get in Riverside or Orange County.
Pasadena's competitive market means sellers get multiple offers. Waiving repairs on the VA appraisal strengthens your position if you can cover minor fixes yourself.
Only if the building is VA-approved. Most Pasadena condos lack approval because HOAs won't submit the paperwork. We check the VA's approved list before you make an offer.
Most lenders require 580-620 minimum. Higher scores unlock better rates and larger loan amounts above the conforming limit.
Some do if they don't understand the program. We include pre-approval letters explaining our 21-day close timeline to eliminate seller concerns about delays.
Not if it needs major repairs. The VA requires homes to be move-in ready with working systems, safe structures, and no peeling paint.
2.3% for first-time zero-down buyers, 3.6% for subsequent use. Disabled veterans and surviving spouses pay nothing.
Depends on income and debts, not savings. Most buyers qualify for $600K-900K with solid income and clean credit under 41% debt ratio.
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.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
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.