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in South Pasadena, CA
South Pasadena's single-family homes often hit seven figures. That price point makes your financing choice critical—especially if you qualify for a VA loan.
Both conventional and VA loans close deals in Los Angeles County every day. The right one depends on your service record, down payment savings, and how long you plan to stay.
Conventional loans come from private lenders without government backing. You need decent credit—typically 620 minimum, 740+ for the best rates.
Put down less than 20% and you'll pay PMI until you hit 20% equity. Rates vary by borrower profile and market conditions, but strong credit gets rewarded here.
VA loans are backed by the Department of Veterans Affairs for eligible service members and veterans. Zero down payment, no PMI, ever—even at 100% financing.
You pay a VA funding fee upfront, typically 2.15% for first use. That can be rolled into the loan. Rates tend to run lower than conventional because the VA guarantee reduces lender risk.
The big split: VA requires no down payment, conventional needs at least 3%. On a $900,000 South Pasadena home, that's $0 versus $27,000 minimum—or $180,000 to avoid PMI.
VA loans charge a funding fee instead of PMI. Conventional loans drop PMI at 20% equity. Run the math on your timeline—if you're staying long-term, VA often costs less.
Credit flexibility matters too. VA lenders can work with 580 scores in many cases. Conventional loans get expensive below 680, and nearly impossible under 620.
If you have a Certificate of Eligibility and plan to stay put, VA almost always wins. Zero down, no PMI, and better rates save real money over time.
Choose conventional if you're not military-eligible, or if you're putting 20%+ down anyway. It's also the move for investment properties—VA requires owner occupancy.
Some South Pasadena sellers worry VA appraisals will kill deals. That's outdated thinking, but if you face that bias, a conventional pre-approval gives you backup leverage.
Yes, but VA requires the home to be move-in ready. Major repairs must be done before closing, or you'll need a VA renovation loan instead.
Usually yes. Conventional loans start at 620, but rates improve dramatically above 740. VA lenders often approve 580+ scores with full entitlement.
Not through standard conventional financing. Some lenders offer lender-paid PMI with a higher rate, but you're still paying for that coverage indirectly.
It depends on how long you keep the loan. PMI is monthly; the funding fee is one-time. VA typically costs less over five-plus years.
Both close in 21-30 days with a competent lender. VA appraisals sometimes take longer, but that's market-dependent, not a VA requirement.