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in South Pasadena, CA
South Pasadena sits firmly outside USDA eligibility zones — this is urban LA County, not qualifying rural territory. That makes FHA the only government-backed option here for most buyers.
Understanding why USDA won't work locally helps you focus on what will. FHA brings 3.5% down and flexible credit to South Pasadena's established neighborhoods.
FHA loans let you buy in South Pasadena with 3.5% down if your credit score hits 580. Scores between 500-579 still qualify with 10% down.
You'll pay 1.75% upfront mortgage insurance plus 0.55%-0.85% annual MIP for the loan's life on most purchases. Debt-to-income ratios can stretch to 50% with strong compensating factors.
USDA loans require zero down payment and offer below-market rates for properties in USDA-designated rural areas. Borrowers must meet income limits — typically 115% of area median.
The program charges 1% upfront guarantee fee and 0.35% annual fee. Credit scores above 640 get automated underwriting; lower scores face manual review.
Location kills USDA eligibility in South Pasadena before you even check income. USDA maps mark this area as ineligible urban territory — no exceptions.
FHA accepts higher debt ratios and works with lower credit scores than USDA's sweet spot. FHA mortgage insurance costs more long-term, but you're comparing a real option to one that won't approve.
FHA is your government-backed option in South Pasadena. USDA eligibility maps haven't included this area in years and won't change.
If 3.5% down feels steep, look at conventional with 3% down or CalHFA grant programs that stack with FHA. Both beat waiting for USDA zones to shift — which they won't in established LA County cities.
No. USDA designates South Pasadena as ineligible urban area. The entire city falls outside USDA's rural/suburban boundaries.
USDA charges 0.35% annual fee versus FHA's 0.55%-0.85%. But since USDA won't approve here, FHA's higher cost is the only government option.
No. FHA approves borrowers at any income level as long as debt ratios work. USDA caps household income around 115% of area median.
Not in South Pasadena. USDA eligibility depends on property location, which won't change. You'd refinance FHA to conventional or another FHA loan.
3.5% with credit scores 580 or higher. Scores between 500-579 require 10% down.