Rates shift, rules evolve, but smart financing always wins. In 2025, the best Pasadena buyers aren’t the ones with the most cash — they’re the ones who pick the right loan.

1️⃣ The Return of the 5% Down Jumbo

High-balance loans are back. Major lenders now allow jumbo financing up to $1.5 million with as little as 5 percent down and no PMI. This opens doors for buyers in Pasadena, Eagle Rock, and Silver Lake who were previously priced out.

2️⃣ Temporary Rate Buy-Downs

The 2-1 buy-down lets you lower your interest rate by 2 percent the first year and 1 percent the second. It’s perfect for buyers expecting rate drops or income growth.

3️⃣ Adjustable Rate Loans (Reimagined)

ARMs are no longer the villain. With rate caps and seven-year stability periods, they offer predictable flexibility for tech and creative professionals who move every 5–7 years.

4️⃣ Down Payment Assistance & Grants

CalHFA, Golden State Finance Authority, and local Pasadena credit unions are offering grants up to $150K for first-time buyers. These pair beautifully with Fannie Mae’s 3% down programs.

5️⃣ Portfolio Lending for Entrepreneurs

For self-employed buyers, private banks are accepting 12–24 months of bank statements in place of traditional W-2 income. That’s a game-changer for Pasadena’s creative class.

“The best loan isn’t the lowest rate,” Jason says. “It’s the one that matches your momentum.”

The Takeaway

Today’s financing landscape rewards education. Buyers who understand program nuances win while others hesitate.

FAQ

Q: What is the best loan for first-time Pasadena buyers?
A: Conventional 3% down or CalHFA assistance programs.
Q: Do rate buy-downs really work?
A: Yes — they reduce initial payments and can be seller-funded.

Compare loan options side-by-side with Jason Bergman – The Agency Pasadena.