First Time Homebuyers, Housing, Housing Programs|

lady and boy by the slide We offer a purchase assistance program for first-time, low income homebuyers to help them finance their first home.

Financial Assistance for Low Income Homebuyers

The Low Income Purchase Assistance Program helps first-time, low income homebuyers purchase homes by providing loans to cover the down payment, acquisition, and closing costs.

Who’s eligible

  • First-time homebuyers who have not had an ownership interest in any real property at any time during the last three years

  • U.S. Citizens, lawful permanent residents, or other qualified aliens

  • Applicants whose total household income of all of the adults, 18 years of age or older who will be living in the home, is at or below the income limits shown on the table below
2020 Income Limits
Household Size 1 2 3 4 5 6 7 8
Annual Household Income Limit $63,100 $72,100 $81,100 $90,100 $97,350 $104,550 $111,750 $118,950

Other Program Requirements

  • Applicants must attend an 8-hour, in-person Homebuyer Education Class given by one of our approved providers

  • Applicants must contribute a minimum of 1% of the home price from their own funds as down payment. Some homebuyers may be required to contribute more than 1% toward the down payment

  • Homebuyers must occupy the home as their principal residence

  • If eligible, applicants who apply for this program may also be required to apply for the Mortgage Credit Certificate Program (MCC)

Loan Amount

We provide a loan of up to $90,000 for down payment, closing costs, and acquisition.

Home purchase price limit

  • Single Family Homes: $745,750

  • Condominiums & Townhomes: $513,000

Loan terms

  • Deferred, requiring no monthly payments

  • Loans have a Shared Appreciation component in which the City will share a certain percentage of the appreciation in the value of the property. For an example of Shared Appreciation, click here

  • Repayment is due on sale, title transfer, first mortgage repayment, or in 30 years

  • Refinancing of first mortgage is allowed under certain conditions

Eligible properties

  • One unit properties, i.e. single family residences including townhomes and condominiums

  • Properties must be located in Los Angeles

  • Properties cannot be tenant occupied, unless the tenant is the prospective homebuyer

  • Approved short sales/pays, foreclosed and REO properties and regular sales

  • All properties are inspected by the City to ensure they meet all applicable state and local housing standards and code requirements. We also conduct a Lead Based Paint Visual Assessment on the property to identify deteriorated paint in the homes. All properties must pass the City inspection. Any required corrections or repairs on the property should be done at the cost of the owner or homebuyer and must be completed before the application for financial assistance is submitted.

Example of how this program works?

We provide purchase assistance up to a maximum of $90,000.  The Low Income Purchase Assistance loan provides the difference between the purchase price plus closing costs (up to 5% of the sales price) and the amount of the buyer’s first mortgage loan, down payment and other funding sources.

                                                                                                 EXAMPLE
Home Purchase Price: $440,000
Homebuyer’s Closing Costs: $13,200
Total Funds Needed: $453,200
First Mortgage: $356,600
Homebuyer Down Payment (1% of Purchase Price): $4,400
Gift/Additional Buyer Cash/Other Source $2,200
HCIDLA LIPA Loan $90,000
Total Funds Available: $453,200

How to apply

Please contact one of our Participating Lender English / Participating Lender Spanish to get pre-qualified for a first mortgage and City loan or call (213) 808-8800 for more information.

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