Buying a Pasadena home from abroad can feel complex. You face different loan rules, added documentation, and local taxes that are easy to miss. With the right plan, you can secure financing, protect your funds, and close on time. This guide walks you through lending paths, costs, timelines, and compliance so you can move forward with confidence. Let’s dive in.
Financing paths for international buyers
Agency loans for residents and visa holders
If you are a U.S. citizen or lawful permanent resident, you can pursue conventional or other agency‑backed loans under standard rules. Many non‑permanent residents with valid work authorization or an acceptable visa can also qualify if they meet lender documentation and income standards, per Fannie Mae’s eligibility guidance. Program details change, so confirm current requirements with your lender.
Portfolio and foreign‑national loans
If you do not have U.S. residency or a Social Security number, you will likely use a portfolio or “foreign‑national” mortgage. These programs are kept by the lender rather than sold to agencies and often require larger down payments, added reserves, and more documentation, with pricing that is typically higher than conforming loans. Many lenders in this segment ask for roughly 25 to 40 percent down, depending on profile and loan size, as outlined by specialty providers of foreign‑national mortgage programs.
ITIN mortgage programs
Some lenders offer non‑QM mortgages using an Individual Taxpayer Identification Number instead of a Social Security number. The CFPB confirms ITIN loans exist, but expect stricter requirements and higher down payments than typical conforming loans. Availability varies, so compare experienced lenders in California.
Lender expectations and preparation
Documentation checklist
Prepare core documents early to speed underwriting:
- Identification: passport, visa if applicable, and SSN or ITIN if available.
- Income proofs: recent pay stubs, employer letters, and translated tax returns or audited financials if self‑employed.
- Assets: 12 to 24 months of bank statements, proof of source of funds for large transfers, and letters explaining unusual activity.
- Credit: U.S. credit report if you have one, or translated foreign credit reports and credit reference letters if allowed by your lender.
Banking and funds movement
Banks, lenders, escrow, and title companies run AML and KYC checks and may hold or question large international wires. The FinCEN advisory highlights the added scrutiny around source‑of‑funds and cross‑border transfers in real estate transactions (see FinCEN’s AML advisory). Open a U.S. account where possible, allow extra time for compliance reviews, and always confirm wiring instructions by phone with escrow using a verified number to avoid fraud.
Pasadena closing timeline
In California, financed purchases commonly close in about 30 to 45 days, depending on lender, loan type, and appraisal timing. Cash purchases can close quicker, sometimes in 1 to 2 weeks, when documentation needs are lighter. Start with a strong pre‑approval, align your offer timelines with your financing path, and build in time for international wires and document translation.
Pasadena taxes and closing costs
Transfer taxes in Pasadena
Pasadena closings include county and city documentary transfer taxes collected at recording. Los Angeles County’s rate is generally $0.55 per $500 of value, and Pasadena’s city tax is $0.275 per $500 (LA County guidance; Pasadena ordinance). For example, on a $2,000,000 purchase, the combined transfer tax is about $3,300. Who pays is negotiable in the contract.
Important distinction: the City of Los Angeles has a separate, tiered “mansion tax” that does not apply in the City of Pasadena. If you are unsure which city governs the property, confirm before budgeting. For context on the LA City structure, see this legal summary of the mansion tax.
Property taxes and assessments
California’s Proposition 13 sets a base property tax of 1 percent of assessed value. Local voter‑approved bonds and assessments are added on top, so effective rates in Pasadena often land around 1.1 to 1.3 percent of value. Some properties also carry special assessments such as Mello‑Roos or local parcel taxes. Review your preliminary title report and tax bill estimates early.
Typical buyer closing costs
Plan for roughly 2 to 5 percent of the purchase price in buyer closing costs in California, depending on lender fees, title and escrow charges, prepaid taxes and insurance, and transfer taxes. This is a planning range often cited in consumer resources, such as this overview of California closing costs. Request a Loan Estimate early and compare providers.
Tax, legal, and compliance
FIRPTA at resale
If you later sell and you are a foreign seller, FIRPTA generally requires the buyer to withhold 15 percent of the amount realized and remit it to the IRS unless an exemption or reduced withholding applies. Buyers can be liable if the required withholding is not made, so proper handling is critical. Review the IRS overview of FIRPTA withholding and plan ahead.
Nonresident tax filings
Nonresident owners of U.S. real property who earn rental income or sell a property may have U.S. tax filing obligations, including Form 1040‑NR and elections that affect deductions. Rules are nuanced and vary by situation. Work with a cross‑border tax advisor before you buy to structure ownership and plan filings.
Estate planning and ownership
U.S. estate tax can apply to certain nonresident owners on U.S.‑situs assets, including real property and some entities. Title choices such as personal ownership, a U.S. LLC, or a foreign company affect estate exposure, financing, and future FIRPTA outcomes. Coordinate early with tax and estate counsel familiar with cross‑border holdings.
FinCEN reporting for entities
FinCEN has finalized a Real Estate Reporting Rule that, effective December 1, 2025, will require reporting for many all‑cash purchases by legal entities and trusts. If you intend to purchase through a company or trust, plan for beneficial‑ownership reporting and additional closing steps. Review FinCEN’s Real Estate Reporting Rule overview and discuss structure with counsel.
Step‑by‑step buying plan
- Clarify your residency status and likely loan channel (agency, foreign‑national, or ITIN).
- Speak with a mortgage broker who regularly serves international buyers in California to understand down payment, reserves, and rate ranges.
- Assemble documents early and line up certified translations where needed.
- Open a U.S. bank account to simplify wires and asset verification.
- Align offer terms with financing milestones and appraisal timing.
- Confirm Pasadena transfer taxes, property tax estimates, and any special assessments with escrow and title.
- Verify wiring instructions by phone and plan international transfers several days in advance.
- Review your Closing Disclosure carefully and schedule a final walk‑through before signing.
Work with a discreet advisor
You deserve a calm, well‑orchestrated process that protects your privacy and timeline. If you want expert guidance tailored to international buyers in Pasadena, connect with Stephany Chen for discreet, white‑glove representation.
FAQs
Can H‑1B or other visa holders get a mortgage in Pasadena?
- Many non‑permanent residents with valid work authorization can qualify for conventional loans if they meet documentation and income standards; review Fannie Mae’s eligibility guidance and confirm program rules with your lender.
What down payment do foreign‑national loans require in Pasadena?
- Portfolio programs commonly require larger down payments, often about 25 to 40 percent depending on profile and loan size, per foreign‑national program descriptions.
Do I need a U.S. bank account for the down payment?
- Lenders accept documented international wires, but AML reviews can delay transfers; a U.S. account can simplify verification, and you should confirm wiring instructions by phone with escrow.
Does LA’s “mansion tax” apply to Pasadena purchases?
- No, it is a City of Los Angeles tax; Pasadena is a separate city, so confirm the property’s city limits and see this legal summary for LA City details.
How much are Pasadena buyer closing costs?
- Plan for about 2 to 5 percent of the purchase price, including lender, title, escrow, recording, and prepaid items; see this overview of California closing costs.
What should I know about FIRPTA if I later sell?
- If the seller is foreign, buyers usually must withhold 15 percent of the amount realized unless an exemption applies; see the IRS guide to FIRPTA withholding.
