Los Angeles is one of the priciest markets in the country, so the city responds with unusually large down payment help — silent second loans of up to $161,000 through its LIPA and MIPA programs — plus a separate Los Angeles County program.
This guide focuses on what first-time buyers in Los Angeles specifically can tap in 2026 — the local programs run by the city and county, the statewide help you can layer on top, and what it realistically takes to buy here.
Los Angeles’s own first-time buyer programs
Assistance in LA depends on whether you buy inside the City of Los Angeles or in the surrounding county:
- Low Income Purchase Assistance (LIPA) — from the LA Housing Department, a 0% deferred silent second of up to $161,000 for first-time buyers at or below 80% of area median income (repaid with a share of appreciation on sale or at a 30-year balloon)
- Moderate Income Purchase Assistance (MIPA) — the LAHD program for buyers earning 81–120% of area median income, a 0% deferred shared-appreciation second of up to $115,000
- Home Ownership Program (HOP) — run by the LA County Development Authority for unincorporated county areas and about 47 participating cities (not the City of LA), a deferred shared-equity second of up to $100,000 or 20% of the price
- Mortgage Credit Certificate (MCC) — a CalHFA federal tax credit on part of your annual mortgage interest that can be paired with the loans above (confirm current availability)
These local programs are the piece most buyers miss, because they are run by the city or county rather than a lender — and they can often be combined with the statewide programs below.
Statewide programs you can also use in Los Angeles
On top of Los Angeles’s local help, every California buyer can access the state’s housing finance programs — below-market loans, down payment assistance, and a possible tax credit. We cover them in full in our guide to California first-time home buyer programs, and the wider local picture in our California first-time home buyer guide. In many cases you can stack a city program with a state program to cover most or all of your cash to close — a lender who works with both can structure it.
What it takes to buy in Los Angeles
The Los Angeles metro median sale price sits around $950,000 to $1,000,000, with condos lower than single-family homes. Affording a typical home usually takes a household income well over $200,000 — which is why LA’s six-figure silent-second loans are such an important tool. They cover a big share of the down payment, and because they are deferred, they do not add to your monthly payment.
Before you shop, pin down your budget. Our home affordability guide walks through how income, debt, and rates set your price range, and our first-time home buyer checklist keeps the rest of the process on track.
Loan options for Los Angeles buyers
Most Los Angeles first-time buyers use one of a few loan types, each of which can pair with the assistance above:
- FHA loans — 3.5% down with flexible credit, popular with first-time buyers
- Conventional loans — as little as 3% down, with reduced mortgage insurance through state HFA versions
- VA and USDA loans — zero down for eligible veterans and in qualifying areas
- Down payment assistance — city and state programs that layer on top (see our down payment assistance guide)
How to buy your first home in Los Angeles
- Check your budget and credit first — see our guide to credit score requirements.
- Complete a homebuyer education course — nearly every Los Angeles and California program requires one, and it is usually free.
- Find a lender who works with both Los Angeles and California programs, and ask them to run the city and state options together.
- Get pre-approved, then line up your assistance before you make an offer.
One note: local and state program funding and terms change, and some rounds close when the money runs out. Always confirm current amounts and availability with the program administrator before counting on a figure.
Los Angeles first-time buyer FAQ
What down payment help is available in Los Angeles?
Inside the City of LA, the main options are LIPA (a deferred silent second up to $161,000 for buyers at or below 80% of area median income) and MIPA (up to $115,000 for 81–120% of area median income). In unincorporated LA County and about 47 cities, the County’s HOP program offers up to $100,000 or 20% of the price. A CalHFA Mortgage Credit Certificate can add ongoing tax savings.
Can I combine Los Angeles city programs with California state programs?
Often yes. City or county assistance is usually designed to layer on top of a first mortgage, and many buyers stack it with a California state program to cover most of their down payment and closing costs. A lender who participates in both can confirm what combines. See our California programs guide for the statewide options.
Do I have to be a first-time buyer to qualify in Los Angeles?
Yes — LA’s programs require first-time buyer status, meaning no ownership interest in real property during the prior three years. LIPA and MIPA also require a 660 minimum credit score, about a 1% contribution, and an 8-hour homebuyer education class. Income limits are tied to area median income and update annually.
What is a silent second, and do I repay LA’s LIPA loan?
LA’s LIPA and MIPA loans are “silent seconds” — second mortgages at 0% interest with no monthly payment. You repay them only when you sell, transfer, or refinance the home, or at a 30-year balloon, and repayment includes a share of the home’s appreciation. That structure lets the city offer very large amounts (up to $161,000 through LIPA) without raising your monthly cost. Confirm current terms and the appreciation-share rules with the LA Housing Department.