How to Use Down Payment Assistance to Buy a Home in Los Angeles County: LACDA HOP, City of L.A. LIPA/MIPA, CalHFA, and What's New for Late 2026

For most first-time buyers in Los Angeles County, the hardest number isn't the interest rate. It's the cash. At September's county median listing price of $950,000, a 20% down payment is $190,000 before a single closing cost.

Down payment assistance can close that gap, and some of it is large. The City of Los Angeles will lend up to $161,000 to a low-income first-time buyer. The county's Home Ownership Program lends up to $100,000. CalHFA's Dream For All loan goes up to $150,000. All three charge 0% interest and need no monthly payment.

It also became news this month. On October 19, 2026, the Los Angeles County Affordable Housing Solutions Agency (LACAHSA) released the first Notices of Funding Availability for a new homeownership program with about $25 million at launch. On October 24, the Los Angeles Times explained Proposition 37, on the November 3 ballot, which would authorize up to $25 billion in state down payment loans for newly built homes. Neither is open to homebuyers yet. The programs below are the ones you can use now, and the steps show how to put them together.

The Los Angeles County market right now

Realtor.com's September 2026 county data (via the Federal Reserve Bank of St. Louis, FRED, and Realtor.com's research data files) shows:

The rate. Freddie Mac's Primary Mortgage Market Survey put the 30-year fixed average at 7.32% for the week of October 22, 2026, down from 7.40% the two weeks before.

What a median-priced home costs to carry. With 20% down on $950,000, the loan is $760,000. At 7.32% for 30 years, principal and interest come to about $5,221 a month, before roughly $792 a month in property tax at the 1% base rate (plus local bonds and special taxes), insurance, and any HOA dues. With 3.5% down ($33,250), the loan is $916,750 and principal and interest rise to about $6,297. With 5% down ($47,500), it's about $6,200. Mortgage insurance would come on top of either low-down-payment figure. It depends on the loan type, your credit, and the lender, so it isn't estimated here.

Formula used: monthly payment = L × r ÷ (1 − (1 + r)^−360), where L is the loan amount and r is the annual rate ÷ 12.

A market with more listings, homes taking 56 days to sell, and about one in six listings cutting price gives a prepared buyer room to negotiate. Down payment assistance comes with extra paperwork and longer timelines, though, so preparation matters even more than usual.

How down payment assistance actually works

Nearly every major program in Los Angeles County works the same way. It isn't a grant. It's a second loan (a "silent second") recorded behind your main mortgage:

• 0% interest, no monthly payment. You pay nothing on it while you live in the home.
• Due later. You repay it when you sell, transfer title, pay off or (in some programs) refinance the first mortgage, or stop living there. The City of L.A.'s loans also come due as a balloon payment after 30 years.
• Shared appreciation. In most of these programs you repay the original amount plus a share of any increase in the home's value. That's what makes the money recyclable for the next buyer, and it's the main cost of the help.

The first mortgage still has to be one you qualify for, from a lender approved for that program. Every program here requires homebuyer education, and every one requires you to live in the home.

Step 1: Find out which programs your address and income qualify for

Where the home is located decides which local program you can use. It's the first filter.

Income limits by household size (2026):

MIPA starts $1 above the LIPA limit (for example, $93,301 for one person). LAHD counts the income of every adult 18 or older in the household. LACDA's limits took effect August 24, 2026, and are updated every year.

LACDA's participating cities (HOP also covers all unincorporated county areas): Agoura Hills, Arcadia, Artesia, Avalon, Azusa, Bell (HOP80 only), Bell Gardens, Beverly Hills, Calabasas, Claremont, Commerce, Covina, Cudahy, Culver City, Diamond Bar, Duarte, El Segundo, Hawaiian Gardens, Hermosa Beach, Hidden Hills, Irwindale, La Cañada Flintridge, La Habra Heights, La Mirada, La Puente (HOP80 only), La Verne, Lawndale, Lomita, Malibu, Manhattan Beach, Maywood, Monrovia, Rancho Palos Verdes, Rolling Hills Estates, San Dimas, San Fernando, San Gabriel, San Marino, Santa Fe Springs, Sierra Madre, Signal Hill, South El Monte (HOP80 only), South Pasadena, Temple City, Walnut, West Hollywood, and Westlake Village. LACDA says its eligibility map isn't guaranteed and asks buyers to confirm an address by emailing HOP@lacda.org.

The City of Los Angeles is not on that list. City homes use LIPA/MIPA instead, and cities such as Long Beach and Pasadena run (or have run) their own programs. See Step 7.

How to do it:

1. Write down every city or unincorporated area you'd consider. For each, note whether it's City of L.A., a HOP city, or neither.
2. Add up the gross annual income of every adult who will live in the home, not just the people on the loan, and compare it to the tables above.
3. Compare your target price range to each program's price cap. The county's $950,000 median listing price is just under the City of L.A.'s $956,465 cap and well above HOP's $700,000/$850,000 caps, so HOP buyers will usually be looking at condos, townhomes, and lower-priced neighborhoods.
4. If you qualify for more than one program, ask a lender who participates in each one whether they can be combined (Step 6).

Step 2: Confirm you're a "first-time buyer" (it may be easier than you think)

You don't have to be a lifelong renter.

• LAHD (LIPA/MIPA): no ownership interest in any real property during the last three years.
• LACDA (HOP): no ownership interest in real estate at any time in the past three years.
• CalHFA: has not owned and occupied a home, and has not lived in a home owned by a spouse, in the last three years. CalHFA's Lender Program Manual notes that because California is a community property state, a spouse's ownership of your principal residence during that period can disqualify you, even if you weren't on title.
• Dream For All is stricter: all borrowers must be first-time buyers, and at least one must be a first-generation buyer. Per CalHFA, that means not having been on title, held an ownership interest, or been named on a mortgage on a U.S. home in the last seven years, and (to the best of your knowledge) your biological or adoptive parents don't currently own a U.S. home (or didn't at death). Anyone who has been placed in foster care or institutional care also qualifies.

Watch the definitions. LAHD and LACDA say "any real property" or "real estate," while CalHFA focuses on a principal residence. CalHFA's manual says owners of rental property may still be first-time buyers if they can document they haven't lived in it in the past three years. Don't assume one program's rule applies to another.

Citizenship and residency: LAHD requires U.S. citizens, lawful permanent residents, or other qualified aliens. CalHFA requires borrowers to be citizens or other U.S. nationals, or "qualified aliens" under 8 U.S.C. § 1641.

How to do it:

1. List every property anyone in the household has owned or been on title to, including inherited homes, trusts, and a share of a family home.
2. For any ownership in the last three years (seven for Dream For All), get the dates from the deed or closing statement before you talk to a lender.
3. If you're married, include your spouse's property history.

Step 3: Take the right homebuyer education course early

Every program requires it, and the wrong course can cost you weeks.

• LAHD: an 8-hour Homebuyer Education Class plus housing counseling from one of LAHD's approved providers.
• LACDA HOP: an eight-hour seminar from a HUD-approved counseling agency. LACDA must have a copy of your Certificate of Completion before close of escrow.
• CalHFA (MyHome, Dream For All): at least one occupying first-time borrower must take either eHome's eight-hour online course ($100, the only online course CalHFA accepts, because it includes a one-hour one-on-one counseling session) or a live course through NeighborWorks America or a HUD-approved agency. CalHFA certificates expire after one year (or the date on the certificate, if earlier). Dream For All also requires a free one-hour shared appreciation course.

How to do it: If you're working in the City of L.A., take LAHD's approved course. If you're also considering CalHFA, ask the counseling agency to confirm in writing that its certificate meets LAHD, LACDA, and CalHFA requirements, so one course covers everything. Do it before you make offers.

Step 4: Get your credit, savings, and documents ready

Credit: LAHD requires a middle FICO score of at least 660. Other programs' first mortgages have their own minimums. Ask your lender.

Your own money:

• LAHD: at least 1% of the home price from your own funds as down payment. LAHD says some buyers will need to put in more to make the deal work.
• LACDA HOP: at least 1% of the down payment, not including closing costs, from your own funds, according to LACDA's eligibility page. Ask the lender how LACDA calculates this for your file. HOP also caps your total contribution to escrow (deposit, gifts, and closing funds) at $150,000 for HOP80 and $200,000 for HOP150, so buyers with large savings may not qualify.

Documents CalHFA suggests having ready: pay stubs, bank statements, employment history, and prior tax returns. Dream For All also asked for a government ID and information about both parents of the first-generation borrower.

How to do it:

1. Pull your credit reports and fix any errors now.
2. Keep your down payment money in your own account and keep records of where it came from. Large unexplained deposits slow down underwriting.
3. If family is giving you money, ask the lender how gifts count toward each program's minimum contribution.

Step 5: Apply through a participating lender, in the right order

You don't apply for these programs on your own. The lender submits the application for you.

City of Los Angeles (LIPA/MIPA): reservations are rationed. Because of limited funds, LAHD releases a set number of loan reservations on specific dates. Its posted 2026 schedule:

That's 112 LIPA and 106 MIPA reservations across the posted 2026 rounds for the entire City of Los Angeles. LAHD says the schedule is subject to change. What it means: if you're aiming for the November 18 LIPA round or the December 16 MIPA round, you need a participating lender and a pre-qualification done now. LAHD's contact line is (213) 808-8800, or lahd.homebuyerinfo@lacity.org. LAHD may also require applicants to apply for its Mortgage Credit Certificate, which gives a federal income tax credit based on 20% of the annual mortgage interest paid.

LACDA HOP: first come, first served. Only a HOP participating lender can submit your application (LACDA posts a participating lender list, most recently updated 4/21/2026). Questions go to HOP@lacda.org or (626) 586-1853.

CalHFA MyHome: CalHFA doesn't lend directly. Use a CalHFA-approved loan officer, who will pair MyHome with a CalHFA first mortgage.

How to do it (the order that works):

1. Pick a lender that participates in every program you might use, and ask how many loans it has closed with each in the past year.
2. Get pre-qualified for both the first mortgage and the assistance.
3. Finish homebuyer education.
4. Shop within the program's price cap and location rules.
5. In your offer, allow a longer escrow and loan contingency. The program has to approve the property as well as you.
6. Order inspections right away (Step 8).

Step 6: Run the numbers with and without assistance

All examples use Freddie Mac's 7.32% (week of Oct. 22, 2026), a 30-year fixed term, and the formula above. Closing costs, mortgage insurance, homeowners insurance, and HOA dues are left out. Property tax is shown at the 1% base rate only. Your actual rate depends on the loan program, credit, and lender, so get written quotes.

Example A: City of L.A. MIPA on an $800,000 condo or house (illustration only)

With MIPA, the same $24,000 of your own cash lowers principal and interest by about $790 a month compared with 3% down alone, and puts the first mortgage at about 82.6% of the price. MIPA's $115,000 isn't free money, though. You'll repay it plus the City's share of appreciation when you sell or refinance, or after 30 years. One thing the table leaves out: LAHD's own examples show the City loan covering the gap between total cost (price plus closing costs of up to 5% of price) and what your first mortgage, your down payment, and other sources supply. The final amount is sized by the lender and LAHD and could be less than the maximum.

LAHD's own published examples show how the gap is filled:

Example B: LACDA HOP150 on an $850,000 home in a participating city (illustration only)

HOP lends the lesser of $100,000 or 20% of the price. 20% of $850,000 is $170,000, so the cap is $100,000.

HOP saves about $687 a month in principal and interest in this example. Remember the $200,000 total-contribution cap for HOP150, and the requirement that any health and safety items in the inspection report be fixed before close of escrow.

Example C: CalHFA FHA + MyHome on a $700,000 home (illustration only)

MyHome can cover up to 3.5% of the price with a CalHFA FHA first loan: $24,500 on $700,000. The FHA base loan would be $675,500, about $4,640 a month in principal and interest. FHA's upfront and annual mortgage insurance premiums come on top and aren't estimated here. MyHome is a deferred-payment junior loan, so it adds no monthly payment, but it must be repaid later. Ask the loan officer for MyHome's current terms in writing.

Example D: How shared appreciation works (Dream For All illustration)

CalHFA's own examples show that a moderate-income Dream For All buyer who gets a loan equal to 20% of the price repays the loan plus 20% of any appreciation. Buyers at or below 80% AMI (per Fannie Mae's HomeReady lookup tool) get a reduced share, 15% of appreciation on a 20% loan.

Suppose you buy at $750,000 with the maximum $150,000 Dream For All loan, so your first mortgage is $600,000 (about $4,122 a month at 7.32%). Later you sell for $850,000, a $100,000 gain:

• At the 20% share: you repay $150,000 + $20,000 = $170,000.
• At the 15% share: you repay $150,000 + $15,000 = $165,000.

(Illustration only. Your loan documents control the actual formula. If the home loses value, read the documents to see what you owe.) LAHD and LACDA also use shared appreciation or shared equity, but their formulas aren't fully spelled out on their program pages. Ask for a written example using your own numbers before you sign.

How to do it yourself:

1. Start with the price and subtract your own cash and the assistance amount to get the first mortgage.
2. Monthly rate r = annual rate ÷ 12. Payment = L × r ÷ (1 − (1 + r)^−360).
3. Add property tax (about 1% of price ÷ 12, plus local bonds), insurance, HOA, and any mortgage insurance quoted by your lender.
4. Compare that total to your take-home pay. Then estimate what you'd repay on the assistance loan if you sold in 5, 10, and 15 years.

Step 7: Know the status of every other program (some are closed or not open yet)

• CalHFA Dream For All (2026 round): closed to new applicants. CalHFA took applications from February 24 to March 16, 2026, and chose recipients by random drawing, not first come, first served, with at least 10% of funding going to applicants in Qualified Census Tracts. CalHFA expected to make $150 million to $200 million available in 2026, and said the 2025-26 State Budget's $300 million would help about 2,000 more households. Voucher holders get 90 days to shop. CalHFA posted on May 20, 2026 that the next round of vouchers had been released. If you applied, check the DFA portal. Waitlisted applicants move up when vouchers open. If you didn't apply, CalHFA points you to MyHome and its other programs. Sign up for CalHFA's eNews for the next round.
• LACAHSA Homeownership Program: coming, but not for households yet. LACAHSA released its buyer-side and production-side NOFAs on October 19, 2026. Its application portal opens October 30, 2026, but it's for organizations (lenders, nonprofits, and developers that will deliver the help), not individual buyers. Responses are due November 20, 2026, with board approval of awards proposed for February 2027. The buyer-side NOFA describes 0% deferred loans for first-time buyers at or below 120% of AMI who contribute at least 2% of the price: a down payment loan of up to 9% of price from LACAHSA (not to exceed $75,000), matched by up to 9% from a local partner; possible interest-rate buydown and principal-reduction loans; total down payment capped at 20%; and shared appreciation capped at 50%. LACAHSA anticipates about $25 million at launch (a $15 million initial allocation plus about $10 million a year), all subject to board and budget approval.
• Proposition 37 (Nov. 3, 2026 ballot): not law. According to the Los Angeles Times, it would authorize up to $25 billion in state down payment loans covering up to 17% of the price of a newly built home, with the buyer contributing 3%. Borrowers would need at least a year of California residency and income at or below 200% of local median income (the Times puts that at $216,200 for a family of four in L.A. County). They wouldn't have to be first-time buyers. Unlike most programs here, the loans would carry interest, with terms set later by CalHFA if voters pass it. Supporters include Gov. Gavin Newsom. The League of Women Voters opposes it. Don't plan a purchase around it until it passes and has published terms.
• Habitat for Humanity of Greater Los Angeles: its down payment assistance program (up to $100,000, 0% payable at 30 years, CalHome-funded, income up to 80% AMI) is listed as "Temporarily Out of Funds."
• City of Long Beach: its First-Time Homebuyer Assistance Program application period is closed.
• Other cities: some run their own programs. For example, the City of Pasadena's Department of Housing lists a Homebuyer Assistance Program. Check your city's housing department for current funding before you count on it.

Step 8: Buy a home the program will approve

• LAHD: one-unit properties only (single-family homes, townhomes, condominiums), in the City of L.A. Regular sales, approved short sales, and foreclosures/REOs are allowed. The home can't be tenant-occupied unless the tenant is the buyer. You must buy your own home inspection.
• LACDA HOP: single-family homes, condominiums, and townhomes. Homes built before 1978 need a visual lead-based paint inspection and must pass it. The home must meet state and local codes, and all health and safety issues in the inspection report must be repaired before close of escrow. No tenants unless it's a tenant-purchaser.
• CalHFA MyHome: single-family, one-unit homes, including approved condos/PUDs. Manufactured housing is permitted. Some guest houses and in-law units may be eligible. No non-occupant co-borrowers.

How to do it: Before you write an offer, ask your agent to confirm the property type, the year built, whether it's occupied, and (for condos) whether the project meets the first-mortgage lender's guidelines. Tell the listing agent up front that you're using assistance and give a realistic closing date. In a market where 15.9% of listings have cut price, a well-prepared assistance buyer can still be a strong offer.

Mistakes to avoid

• Waiting to call a lender. City of L.A. reservations come in small batches (15 LIPA slots on Nov. 18), and HOP is first come, first served.
• Forgetting an adult in the household. LAHD counts all adults 18+ for the income limit.
• Shopping above the cap. $956,465 (City of L.A.), $700,000 (HOP80), $850,000 (HOP150). Over by a dollar is over.
• Taking the wrong class. Get written confirmation that your certificate is accepted by every program you'll use.
• Ignoring shared appreciation. Get a written repayment example before signing.
• Assuming you can refinance freely later. LAHD allows refinancing only under certain conditions, and repayment can be triggered by paying off the first mortgage. Read the terms.
• Counting on money that isn't open yet (LACAHSA, Prop 37) or is paused (Habitat LA).
• Bringing too much cash to HOP. Contributions above $150,000 (HOP80) or $200,000 (HOP150) disqualify you.

Your down payment assistance checklist

1. Location checked: City of L.A., HOP city/unincorporated area, or other
2. Household income (all adults) compared to the 2026 limit for your household size
3. First-time (and, for Dream For All, first-generation) status confirmed, including a spouse's history
4. Middle credit score known (LAHD minimum 660)
5. Own-funds minimum saved and documented (LAHD 1% of price; HOP per LACDA's rule)
6. Eight-hour homebuyer education plus counseling completed, with a certificate accepted by each program
7. Participating/approved lender chosen; pre-qualified for the first mortgage and the assistance
8. LAHD reservation date targeted (LIPA Nov. 18 / MIPA Dec. 16, 2026), if buying in the City of L.A.
9. Price range under the program cap
10. Written shared-appreciation repayment example in hand
11. Inspection ordered right away; lead paint inspection if built before 1978 (HOP)
12. Escrow timeline long enough for program approval

What this means day to day

For a household earning, say, $133,250 (the four-person limit for LIPA and HOP80), gross pay is about $11,104 a month. In Example A, MIPA's lower payment frees up about $790 a month for childcare, a car payment, or savings, without draining your emergency fund at closing. The tradeoff comes later: when you sell or refinance, part of your gain goes back to the program that helped you buy. For many Los Angeles County families, getting in years sooner, at a fixed payment instead of rising rent, is worth it. Run your own numbers both ways before you decide.

If you're a first-time buyer in Los Angeles County, Choice of America can help you match neighborhoods to program rules and price caps, coordinate with participating lenders, and write offers that fit an assistance timeline. Call or text 833-THIS-BROKER (833-842-7465), or visit choiceofamerica.com and our Los Angeles County real estate page.

Dr. Hamid Rowshan, Choice of America. DRE #02004794 | Company DRE #02240008.

This article is general information, not legal, tax, or financial advice. Program rules, limits, funding, and reservation dates change often; confirm current terms with the program administrator, a participating lender, and your own legal or tax advisor. Example figures are illustrations, not loan quotes or offers for any specific property.

Sources:

• Realtor.com county data via FRED: median listing price, price per square foot, active listings, median days on market, price-reduced share
• Realtor.com Research Data: county inventory core metrics (price_reduced_share)
• Freddie Mac Primary Mortgage Market Survey (30-year fixed, via FRED)
• LACDA Home Ownership Program (HOP80/HOP150)
• LACDA HOP Participating Lender List (4/21/2026)
• LAHD: Low Income Purchase Assistance (LIPA)
• LAHD: Moderate Income Purchase Assistance (MIPA)
• LAHD: First-Time Homebuyers (LIPA, MIPA, MCC)
• CalHFA MyHome Assistance Program
• CalHFA 2026 Income Limits (effective 6/30/2026)
• CalHFA Borrower Eligibility (first-time and first-generation definitions)
• CalHFA Lender Program Manual (August 2026)
• CalHFA California Dream For All
• CalHFA press release, Jan. 16, 2026: Dream For All applications to resume Feb. 24
• CalHFA Single Family Program Bulletin #2026-04 (May 21, 2026)
• LACAHSA Homeownership Programs
• LACAHSA Homeownership Buyer's Side Assistance NOFA (Oct. 19, 2026)
• La Opinión, Oct. 20, 2026: Los Ángeles prepara hasta $25 millones para ayudar a comprar casa
• Los Angeles Times, Oct. 24, 2026: Prop. 37 offers $25 billion to homebuyers to help with a down payment
• Habitat for Humanity of Greater Los Angeles: Downpayment Assistance Program
• City of Long Beach: Homebuyer Programs
• City of Pasadena Department of Housing