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South Pasadena sits between Pasadena and Highland Park with tree-lined streets and craftsman homes. Most properties here require conventional loans since they exceed FHA loan limits.
The stock here skews older—these homes need good inspection reports. Lenders scrutinize property condition more on conventional loans than government programs.
Competition runs hot in this school district. Conventional buyers win in multiple offers because sellers know these deals close cleaner than FHA or VA.
Conventional Loans in South Pasadena
You need 620 credit minimum, but 740+ gets you the rate discounts that matter. Every 20-point jump above 740 drops your rate.
Three percent down works for first-timers, but expect PMI until you hit 20 percent equity. Five percent down opens more lenders and better pricing.
Debt-to-income caps at 50 percent with strong credit and reserves. Most approvals land between 43-45 percent DTI.
Local decision guide
Use this guide to connect conventional loans eligibility, lender expectations, and local market factors before comparing payment options in South Pasadena.
South Pasadena sits between Pasadena and Highland Park with tree-lined streets and craftsman homes. Most properties here require conventional loans since they exceed FHA loan limits.
The stock here skews older—these homes need good inspection reports. Lenders scrutinize property condition more on conventional loans than government programs.
Competition runs hot in this school district. Conventional buyers win in multiple offers because sellers know these deals close cleaner than FHA or VA.
Big banks price conventional loans tight, but they're slow and inflexible on appraisal issues. Credit unions beat them on rates by an eighth point typically.
Wholesale lenders give brokers access to 40+ conventional investors. We shop your scenario across all of them—same morning, different price sheets, real savings.
South Pasadena appraisals come in weird sometimes because the housing stock varies wildly block to block. You want a lender who won't kill your deal over a $10K gap.
Put down 20 percent if you can swing it. PMI on a $900K loan costs $350-500 monthly and that's dead money until you refi or hit 78 percent LTV.
Lock your rate when you go into contract, not when you start shopping. Rates move fast and South Pasadena escrows run 30-35 days typically.
Ask for lender credits if rates drop after you lock. Most borrowers don't know they can renegotiate—we do it constantly when markets shift mid-escrow.
FHA loans cost more long-term even with lower credit scores. The upfront PMI and lifetime monthly premiums add $40K+ over a 30-year loan versus conventional.
Jumbo loans kick in above $832,750 in LA County. If you're close to that line, sometimes putting more down to stay conventional saves you a point on rate.
ARMs make sense if you're moving in five years or less. South Pasadena buyers often upgrade to Pasadena or San Marino—a 7/1 ARM beats a 30-year fixed by half a point.
The school district drives prices here. Lenders see South Pasadena as stable collateral—low default rates mean better loan terms than surrounding areas.
Historic homes need extra appraisal attention. Foundation work and old electrical systems flag underwriters, so get your inspection done early.
Mission Street properties near the Gold Line appraise higher per square foot. Proximity to Metro matters more each year as LA traffic worsens.
Minimum 620, but 740+ gets meaningful rate discounts. Most approved borrowers here carry 720+ scores given local home prices.
Yes, but few properties here qualify at that price point. You'll pay PMI and face tougher competition against 20% down buyers.
Conventional appraisals are more forgiving on cosmetic issues. FHA requires specific repairs that kill deals on 1920s craftsman homes.
Conforming limit is $1,249,125 for 2026. Above that you need a jumbo loan with stricter requirements and different pricing.
Figure 30-35 days from contract to close. Appraisals take 7-10 days, underwriting another week if your file is clean.