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South Pasadena Mortgage FAQ
South Pasadena sits between Pasadena and downtown LA with tight inventory and buyers who value the schools. Most deals here are conventional or jumbo depending on price point.
We broker loans across 200+ lenders to match your income type and property. Self-employed buyers often need bank statement or P&L programs that traditional banks won't touch.
Below are the questions we hear most from South Pasadena borrowers. Read through to see what applies to your situation.
Most conventional loans require 620 minimum. FHA accepts 580 with 3.5% down, though 600+ gets better pricing.
Conventional loans start at 3% for first-time buyers, 5% for repeat buyers. Jumbo loans typically need 10-20% depending on credit and reserves.
W-2 wages, 1099 earnings, rental income, retirement distributions, and disability payments all count. Self-employment income requires two years of history unless you use bank statement programs.
Yes, we use bank statement loans or P&L programs that qualify you on deposits instead of tax returns. Most self-employed borrowers get approved this way.
FHA allows lower credit and smaller down payments but charges upfront and monthly mortgage insurance. Conventional offers lower rates and cancellable PMI once you hit 20% equity.
Flood insurance is rarely required here. Earthquake coverage is optional but common given California seismic risk.
Most purchase loans close in 25-35 days. Cash-out refinances take 30-40 days due to rescission periods.
Bring two years of tax returns, two months of bank statements, recent pay stubs, and ID. Self-employed borrowers may skip tax returns with bank statement programs.
Yes, immediate family can gift funds with a signed letter. You'll need to document the transfer into your account.
Jumbo loans exceed conforming limits, currently $806,500 in Los Angeles County. Many South Pasadena homes require jumbo financing given local prices.
The unified school district drives demand and supports pricing. Buyers prioritize proximity to top-rated elementary and middle schools.
Budget 2-5% of the purchase price for lender fees, title, escrow, and prepaid property taxes. Rates vary by borrower profile and market conditions.
Some conventional loans allow appraisal waivers if the property meets automated underwriting criteria. Jumbo loans almost always require full appraisals.
We shop 200+ lenders to find better rates and programs than single-bank options. Self-employed and investor clients get more loan choices.
Yes, the HOA must be approved by Fannie Mae or FHA. We review HOA documents before pre-approval to avoid surprises.
Conventional and FHA loans allow 2-4 unit purchases with 15-25% down. You can count rental income toward qualifying if you occupy one unit.
PMI is private mortgage insurance required on conventional loans under 20% down. Avoid it with 20% down or use piggyback second mortgages.
ARMs offer lower initial rates fixed for 3, 5, 7, or 10 years, then adjust annually. They suit buyers planning to sell or refinance before adjustment.
Yes, if you have 15-20% equity remaining after the HELOC. We broker HELOCs through multiple lenders to find competitive terms.
DSCR loans qualify investors based on rental income, not personal income. You skip tax returns and W-2s entirely.
If you're active duty, veteran, or eligible spouse, VA loans offer zero down with no PMI. Most South Pasadena properties meet VA requirements.
Yes, we offer foreign national loans with 30-40% down. You don't need US credit or Social Security numbers.
Pre-qualification estimates what you can afford. Pre-approval verifies income and credit, giving you a committed loan amount for offers.
You pay only interest for 5-10 years, then principal and interest after. They free up cash flow but require strong income or assets.
ITIN loans allow foreign nationals and non-residents to finance homes. Expect 15-25% down and competitive rates.
Yes, cash-out refinances let you borrow up to 80% of home value. Use funds for renovations, debt consolidation, or investments.
Points are upfront fees to lower your rate. Pay them if you're keeping the loan 5+ years, skip them for short-term ownership.
Bridge loans let you buy before selling your current home. You avoid contingent offers and compete better in tight inventory.
It qualifies you based on liquid assets divided by loan term. Retirees with stocks or savings use this when income looks low on paper.
Assumable loans are rare outside FHA and VA. Most conventional loans have due-on-sale clauses that prevent assumption.
California's Prop 13 limits base tax to 1% plus local assessments. Your lender escrows property tax into monthly payments.
You can renegotiate price, bring extra cash to close, or cancel and get your deposit back. Low appraisals are less common in stable markets like South Pasadena.
Lock if rates are rising or you're closing soon. Float if rates are dropping and you can tolerate risk.
Jumbo loans often require 6-12 months of reserves. Conventional loans need reserves for multi-unit or investment properties.
Focus on rate, APR, and lender fees in Section A. Ignore third-party costs like title and escrow since those stay consistent.
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.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.