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FHA financing, Los Angeles County 2026
Pasadena FHA Loans
A Pasadena FHA loan can reach most of the city with 3.5% down, because Los Angeles County’s 2026 FHA limit is $1,249,125, the national ceiling. The prices that fit FHA most easily are lower, in the condos and lofts of downtown and Old Pasadena, where the questions are whether the building is approved and what the mortgage insurance will cost.
See if FHA fits FHA rates today
The Pasadena FHA Loan Limit Is Rarely the Problem
In most of California the FHA limit is the first thing a buyer runs into. Not here. The one-unit limit of $1,249,125 supports a purchase of about $1,294,000 at the minimum 3.5% down, above Zillow’s September 2026 typical value of about $1.19 million. It only bites at the top, in Bungalow Heaven (Redfin median about $1.39 million in August 2026) and San Rafael and the Arroyo, near $1.60 million.
The real constraint is the payment. At the city median an FHA loan takes a high household income, so FHA tends to fit best where prices are lower: the condos and lofts of Old Pasadena, the Playhouse District and the blocks near Metro A Line stations, where the 91101 median was about $755,000, and Zillow’s West Central grouping, at about $757,000. At those prices 3.5% down is about $26,000.
Today’s FHA and Conventional Rates for a Pasadena Purchase
Priced for Los Angeles County, October 27, 2026
0.187 points See every option 30-year fixed 7.125% 7.192% APR P&I $4,312/mo on $640,000
0.125 points See every option 15-year fixed 6.375% 6.436% APR P&I $5,531/mo on $640,000
$800 lender credit See every option 30-year VA 6.750% 6.794% APR P&I $4,151/mo on $640,000
$506 lender credit See every option 30-year jumbo 8.125% 8.207% APR P&I $10,395/mo on $1,400,000
0.322 points See every option
Par pricing for a single-family primary residence in Los Angeles County: 20% down, 30-year term unless noted, 780+ credit, 30-day lock, escrows included. Payments are principal and interest only; taxes and insurance add to them. Rates change through the day and are not a commitment to lend. Price your own Pasadena scenario, no credit pull.
Pasadena Market Numbers for FHA Buyers
Sources: Redfin city and ZIP code data (August and September 2026); U.S. Census Bureau ACS 2020-2024.
Most Pasadena households rent, and FHA is one way for a renter to make a first move. Longer market times in 2026 help: sellers who have waited may be more open to an FHA offer and to paying some closing costs.
Where Pasadena FHA Buyers Are Shopping
Old Pasadena and the Playhouse District
The core of the city’s condo and loft market. Building approval is the first check, and the 91101 median sits near the MIP step described below.
South Lake Avenue
A shopping corridor ringed by apartments and condos. Look closely at HOA dues and reserves, since dues count in your debt-to-income ratio.
Northwest Pasadena
Modest bungalows that can fit FHA on a single-family house. Older homes here can draw FHA appraisal repair items.
Madison Heights
Near $1.04 million, FHA is possible but pushes the base loan above $726,200, so the annual premium is higher. Compare conventional carefully.
Bungalow Heaven
Craftsman houses with a median near $1.39 million, above what the limit supports at 3.5% down, so FHA here takes roughly 10% down or more and a strong income, and century-old houses must clear the appraiser’s safety review.
Condo Approval Comes Before the Offer
An FHA condo loan requires the project to be FHA-approved, or the unit to receive a single-unit approval. Status varies building by building downtown and in Old Pasadena, and approvals can lapse, so have Mike check before you write an offer. Get the current HOA dues and ask whether a special assessment is pending.
Downtown Prices Sit Right on the MIP Step
FHA charges an upfront premium of 1.75% of the base loan, usually financed, plus an annual premium paid monthly. On a 30-year loan the annual rate is 0.55% at minimum down and 0.50% with 5% or more, while the base loan is $726,200 or less; above that it is 0.75% and 0.70%. At 3.5% down the line falls at about $752,500, and the 91101 median of about $755,000 sits just above it. A little more down, or a slightly lower price, can keep the base loan under the threshold.
| $755,000 purchase | Base loan | Upfront MIP, 1.75% | Monthly MIP | MIP lasts |
|---|---|---|---|---|
| 3.5% down | $728,575 | $12,750 | $455 (0.75%/yr) | Life of the loan |
| 5% down | $717,250 | $12,552 | $299 (0.50%/yr) | Life of the loan |
| 10% down | $679,500 | $11,891 | $283 (0.50%/yr) | 11 years |
Annual MIP rates for case numbers endorsed on or after March 20, 2023 (ML 2023-05), unchanged through October 2026.
With 10% or more down the premium ends after 11 years; with less it stays for the life of the loan. The usual way out is refinancing into a conventional loan once equity reaches about 20%.
FHA or Conventional at a 660 Score
With strong credit, 5% down conventional often costs less because PMI is cheap and removable. Lower scores shift the balance, since FHA pricing changes little with score. Here is a $755,000 downtown purchase at 660 with today’s county pricing.
| $755,000 purchase, 660 credit | Conventional, 5% down | FHA, 3.5% down |
|---|---|---|
| Down payment | $37,750 | $26,425 |
| Loan amount | $717,250 | $741,325 with 1.75% upfront MIP |
| Today’s rate (APR) | 8.125% (8.256%) | 7.250% (7.321%) |
| Principal and interest | $5,326/mo | $5,057/mo |
| Mortgage insurance | $765/mo PMI | $455/mo MIP |
| Before taxes and insurance | $6,091/mo | $5,513/mo |
| Mortgage insurance ends | At 20% equity (can be removed) | Life of the loan with under 10% down |
Excludes property tax, insurance and HOA dues, which matter on a condo. Rates are today’s Los Angeles County par prices with APR.
Pasadena FHA Loan Requirements
- Credit. 580 or higher for 3.5% down; 500 to 579 needs 10% down. HUD will let lenders add FICO 10T and VantageScore 4.0 for case numbers assigned from January 1, 2027, without changing these minimums.
- Occupancy. The home must be your primary residence.
- Debt-to-income. Payment, HOA dues, taxes, insurance and other debts measured against income.
- Property. An FHA appraisal for value and health and safety, plus project approval for condos.
- Insurance. Coverage in force at closing. Near Pasadena’s Very High Fire Hazard Severity Zones in the northern canyons and western hills, and in the northern neighborhoods where the Eaton Fire destroyed homes in 2025, get a quote during the inspection period.
Older Homes and the FHA Appraisal
FHA appraisers look for health and safety issues as well as value. With Bungalow Heaven’s Craftsman houses dating from 1900 to 1930 and much central housing decades old, that can mean flaking paint, worn roofs, missing handrails or electrical concerns that must be fixed before closing. Negotiate repairs early. If the house needs more than a seller will do, a conventional loan or a later Pasadena HELOC may fit better.
Assistance Programs and Their 2026 Status
- Pasadena Homebuyer Assistance Program: coming soon. Listed by the Department of Housing without a published amount or launch date.
- CalHFA MyHome Assistance Program: listed as current. A deferred junior loan of up to 3.5% of price with a CalHFA FHA first, within income limits.
- CalHFA Zero Interest Program and MyAccess: listed as current. ZIP (closing cost help) pairs with a CalPLUS FHA first; MyAccess (down payment or closing cost help) pairs with a CalPLUS Access FHA first.
- Dream For All: application window closed. The portal closed March 16, 2026, with selection by drawing, and the program pairs with a conventional first, not FHA.
Status changes through the year and CalHFA programs run through approved lenders, so Mike confirms both the week you apply.
Pasadena FHA Loans for Two to Four Units
FHA finances two- to four-unit buildings with 3.5% down when you live in one unit, and the county limits rise with each unit. Measure H rent stabilization covers multifamily units built before February 1, 1995, about 77% of the city’s multifamily stock. Tenant units in an older duplex may be capped at the 2.5% adjustment for October 2026 through September 2027, so budget on today’s rents.
| Los Angeles County, 2026 | FHA loan limit | Highest price at 3.5% down |
|---|---|---|
| One unit (house, condo, townhome) | $1,249,125 | $1,294,400 |
| Two units | $1,599,375 | $1,657,300 |
| Three units | $1,933,200 | $2,003,300 |
| Four units | $2,402,625 | $2,489,700 |
FHA forward mortgage limits for Los Angeles County, 2026 (HUD Mortgagee Letter 2025-23).
Veterans should also price a Pasadena VA loan, which has no monthly mortgage insurance. Compare programs on the Pasadena mortgage rates page or read the statewide FHA guide.
Five Steps to Closing a Pasadena FHA Loan
- Check the numbersPrice range, savings and rough score, with no credit pull.
- Confirm the buildingCondo FHA approval, dues and any special assessment.
- Get pre-approvedIncome and assets reviewed up front.
- Inspect with FHA in mindAsk for safety repairs before contingencies expire.
- Appraise, sign and fundFHA appraisal, then e-signature and local escrow.
Questions About FHA Financing in Pasadena
What is the Pasadena FHA loan limit for 2026?
Pasadena is in Los Angeles County, where the 2026 one-unit FHA limit is $1,249,125, the national ceiling, supporting a purchase of about $1,294,000 at 3.5% down. Two units go to $1,599,375 and four units to $2,402,625.
Can I buy a downtown Pasadena condo with an FHA loan?
Yes, if the project is FHA-approved or the unit can get a single-unit approval. Status varies by building in Old Pasadena and the Playhouse District, so check before you offer. HOA dues count in your debt-to-income ratio.
Why does $752,500 matter for an FHA buyer?
At 3.5% down, that price produces a base loan of $726,200. Above it the annual premium rises from 0.55% to 0.75%. With the downtown median near $755,000, a slightly larger down payment or lower price can noticeably cut the monthly premium.
Does Pasadena have a down payment assistance program?
The city lists a Pasadena Homebuyer Assistance Program as coming soon, with no amount or launch date. CalHFA’s MyHome Assistance Program can cover up to 3.5% of the price with a CalHFA FHA first. Confirm status when you apply.
Will an FHA appraisal flag problems on an older Pasadena house?
It can. Deteriorated paint, roof condition, handrails and electrical hazards come up more often in houses close to a century old, and they generally must be repaired before closing.
What credit score do I need for a Pasadena FHA loan?
FHA allows 3.5% down at 580 and up, and 10% down from 500 to 579. Lenders can set higher floors, which is one reason Mike compares several.
Can I use FHA on a duplex with Measure H tenants?
Yes, if you will live in one unit. Rent increases on covered tenant units are limited by Measure H, so the lender and your budget should use current rents.
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Check Whether a Pasadena FHA Loan Fits
Send the price range, the building or neighborhood, your rough credit score and how much you have saved. Mike will compare FHA against conventional and any program you qualify for, with our own programs and other wholesale lenders’. No credit pull to start.
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