You’ve heard it a thousand times: “You need 20% down to buy a home.” In 2025, that myth is officially dead — and the numbers prove it.

The Reality Check

For a $1M Pasadena home, 20% down equals $200,000 — a figure that scares many first-time buyers away. But several active loan programs make ownership possible with as little as 3–5% down, often with no private mortgage insurance (PMI) at all.

The Programs That Work

Conventional 3% Down Loans: Perfect credit helps, but strong income can offset modest savings.
5% Down Jumbo Options: Major lenders now offer Pasadena-level jumbo loans with small down payments.
CalHFA and LA County Assistance: Qualified buyers can access up to $150K in deferred payment assistance.

Case Study

One of Jason’s 2024 buyers, a Pasadena teacher, purchased a $920K townhouse with 5% down using a blended loan structure — combining conventional financing and grant-based closing cost support. Her total move-in cost? Just $49K.

The Strategy Behind the Savings

Low down doesn’t mean low discipline. The key is understanding closing costs, cash reserves, and credit score impact. Buyers who plan early can leverage down payment assistance while maintaining competitive interest rates.

“It’s not about how much you have,” Jason says. “It’s about how you structure what you have.”

Where to Find the Sweet Spot

Pasadena’s condo and townhouse market remains ideal for 5–10% down buyers. North Lake, Playhouse District, and Sierra Madre-adjacent pockets offer listings under $900K with strong rent-to-value ratios — perfect for long-term growth.

The Long Game

Homeownership builds leverage faster than saving ever could. Even modest appreciation on a $900K home adds $45K in equity in year one. Waiting “to save more” costs more in missed opportunity than in interest.

FAQ

Q: Can I really buy with 5% down in Pasadena?
A: Yes — through updated jumbo and conventional loan programs.

Q: Do low down payment loans come with high risk?
A: Not if you budget for reserves and work with an experienced agent and lender team.

Find your low-down path to ownership at Jason Bergman – The Agency Pasadena.