Question 1

What is the conforming loan limit in Los Angeles County for 2026?

Accepted Answer

The 2026 conforming limit is $1,249,125. Loans above that amount are jumbo loans. FHA and VA loans also cap at $1,249,125 in this county.

Question 2

Is Los Angeles County an FHA high-cost area?

Accepted Answer

Yes. Los Angeles County is designated an FHA high-cost area. This affects the maximum FHA loan amount available to borrowers in South Pasadena.

Question 3

Is Los Angeles County a VA high-cost area?

Accepted Answer

Yes. Los Angeles County is a VA high-cost area. VA loans are available up to $1,249,125 in this county.

Question 4

What credit score do I need to buy in South Pasadena?

Accepted Answer

Conventional loans typically require 620+ FICO. FHA loans go down to 580+ FICO. VA loans have no set minimum but lenders usually want 620+.

Question 5

How much down payment do I need for a conventional loan?

Accepted Answer

Conventional loans accept 3% down, though 5-10% is common. At 20% down or more, you skip PMI entirely. Less than 20% down means PMI applies.

Question 6

Do I need 20% down to avoid PMI on a conventional loan?

Accepted Answer

Yes — 20% down is the only way to skip PMI on a conventional loan. Below 20% down, PMI is required. PMI cancels automatically at 78% LTV.

Question 7

What is FHA's minimum down payment?

Accepted Answer

FHA requires 3.5% down minimum with a 580+ FICO score. Upfront mortgage insurance is 1.75% of the loan amount. Annual MIP runs for the life of the loan if down is under 10%.

Question 8

Can I get a VA loan with zero down in South Pasadena?

Accepted Answer

Yes. VA loans allow zero down for eligible veterans, active duty, and surviving spouses with a Certificate of Eligibility. A funding fee replaces PMI.

Question 9

What is the VA funding fee?

Accepted Answer

The VA funding fee is 2.15% of the loan amount on first use with zero down. Subsequent VA loans cost 3.3%. Veterans with a 10%+ disability rating are exempt.

Question 10

How does LAUSD's fiscal situation affect my home purchase decision?

Accepted Answer

LAUSD faces county oversight and potential budget cuts. If schools matter to your family, research current conditions and enrollment trends. Property values may be affected by school stability.

Question 11

What does the Los Angeles County median income of $87,760 mean for my qualification?

Accepted Answer

This is the area median income. FHA and USDA loans use it to determine maximum purchase prices. Your actual income must meet lender requirements.

Question 12

Can I use USDA financing in South Pasadena?

Accepted Answer

USDA loans require properties in USDA-designated rural areas. South Pasadena is urban, so USDA financing is not available here. Conventional, FHA, or VA loans are your options.

Question 13

What happens if I want to buy above the $1,249,125 limit?

Accepted Answer

Loans above $1,249,125 are jumbo loans. Jumbo rates typically run 0.125-0.5% higher than conforming. Jumbo lenders usually require 700+ FICO and 20% down.

Question 14

How long does it take to close a mortgage in South Pasadena?

Accepted Answer

Conventional loans typically close in 30-45 days. FHA loans may take 40-50 days due to appraisal review. VA loans often close in 35-45 days.

Question 15

What closing costs should I expect?

Accepted Answer

Closing costs typically range from 2-5% of the loan amount. Lender fees, title insurance, appraisal, and escrow make up the bulk. Ask your lender for a Loan Estimate upfront.

South Pasadena mortgage questions answered