The Fed has been working hard in trying to make homes, or at the very least home loans, more affordable to buyers. With the average home prices in Pasadena being around $787,000, the first mortgage loan limits of $417,000 forced many Pasadena California real estate buyers to get a much more expensive 2nd loan for the difference between the first mortgage and the buyers down payment.

Solution: the new ˜high balance˜conforming loans that are being offered to Pasadena real estate consumers. These new loans allow Pasadena buyers to get the first trust deed as high as $729,750. This applies to most of the Los Angeles county and includes Pasadena, San Gabriel, San Marino, Monterey Hills, Arcadia, Temple City, Monrovia, Sierra Madre, La Canada, Arcadia, Duarte, Burbank, Glendale and surrounding cities.

Will this help? Maybe¦ These loans do allow a higher loan amount, but these high limit new conforming loans have pretty strict guidelines and cost more than what we previously have come to expect from our conforming loans.

To make it easier for our Pasadena buyers, I put together a quick outline of the features of these ˜high balance loans that home buyers can refer to:


  • You can now get your Pasadena First Trust Deed home loan amount up to $729,750
  • Buyers will need to have a MINIMUM credit score of 700 (FICO)
  • Most lenders require a minimum of 10% down, mostly 15% to qualify.
  • Available programs include 30 and 15 year fixed loans. Loans that are fixed for 10, 7 & 5 years and then move to an adjustable. Also being offered are 30 and 5 year interest only loans.
  • These loans apply to Single Family Homes and are not allowed for 2nd or vacation homes or multiple units.
  • You will need to occupy your Pasadena home to qualify. Non-owner occupants are not eligible.
  • Cash out refinances are NOT allowed.
  • Refinance to combine current 1st and 2nd mortgages are NOT allowed
  • The buyers debt to income ratio needs to be a max of 45%
  • Full verification of employment or income is required
  • A maximum of 3% seller contribution allowed.

AND most importantly, these loans will cost you about 1% higher than the standard ˜conforming loan (under $417,000) and 1% lower than jumbo loans.

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