To continue with my series of FHA posts, today, we're going to look at advantages and disadvantages of getting an FHA loan.


  • LOW CASH OUTLAY - Pasadena buyers can get an FHA loan for as much as 97% of Pasadena home purchase price. Only 3% down, not a bad deal.
  • FHA LOANS ARE FULLY ASSUMABLE. Yes, you read it correctly. These loans are assumable as long as the new buyer qualifies and is not an investor.
  • FHA LOANS DO NOT HAVE A PREPAYMENT PENALTY. FHA loans do not have penalties for paying off all or part of the loan before the scheduled term. This feature also gives the FHA buyer the opportunity to refinance the loan to lower interest rates if rates decline (with some additional costs involved in refinancing).


  • SOME SELLERS FEAR FHA APPRAISALS: There are some sellers and real estate sales people who would prefer not to sell their homes to buyers seeking new FHA loans. This stems from past appraisals which were lower than the sale price or had extensive repair requirements. While the appraisals still may be a roadblock in some areas of the U.S., FHA now uses independent "fee" appraisers rather than FHA "staff" appraisers, which has eliminated many of the discrepancies.
  • LOAN PROCESSING TIME: FHA loans generally take about 2 weeks longer to process and close than conventional loans. Normal FHA processing time is 4-6 weeks, compared with 2-4 weeks for conventional loans. However, many FHA lenders are now approved for automatic loan approvals which can speed up processing substantially.

READ MORE: What YOU need to know about FHA Loans - Part I

What YOU need to know about FHA Loans - Part II

Distressed Market and FNMA Announcement

If I can be of any assistance with your Pasadena Real Estate needs, please do not hesitate to email me or call me at (626)629-8439. Thank you!

Interested in more information about Greater Pasadena Area cities, check out our City Guides below:

Alhambra City Guide

Altadena City Guide

Arcadia City Guide

Eagle Rock City Guide

Monterey Hills City Guide

Pasadena City Guide

San Gabriel City Guide

San Marino City Guide

Sierra Madre City Guide

South Pasadena City Guide

And, if you are interested in fun activities to do, take a look at our 365 Things To Do In Pasadena® page.

Thinking of selling your home? Interested in finding out the current market value of your single family home, condo or investment property? Then call Irina Netchaev at (626) 629-8439 to discuss what is happening in today’s Southern California Real Estate Market.