Currently Out of Funds
We offer a purchase assistance program for first-time, moderate income homebuyers to help them finance their first home.
Financial Assistance for Moderate Income Homebuyers
Who’s eligible
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First-time homebuyers who have not had an ownership interest in any real property at any time during the last three years
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U.S. Citizens, lawful permanent residents, or other qualified aliens
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Homebuyers must have a middle FICO score of at least 660.
- 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
| Household Size | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
|---|---|---|---|---|---|---|---|---|
| Mod 120 (81% – 120% AMI) | $77,701 – $111,650 | $88,801 – $127,600 | $99,901 – $143,500 | $110,951 – $159,450 | $119,851 – $172,2500 | $128,751 – $185,000 | $137,601 – $197,750 | $146,501 – $210,500 |
| Mod 150 (121% – 150% AMI) SB2 Funds | $111,651 – $116,500 | $127,601 – $133,150 | $143,501 – $149,800 | $159,451 – $166,450 | $172,251 – $179,750 | $185,001 – $193,050 | $197,751 – $206,400 | $210,501 – $219,700 |
* For larger household sizes, please contact LAHD.
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 $115,000 for down payment, closing costs, and acquisition. Up to $115,000 will be available for homebuyers earning between 81-120% Area Median Income (AMI) and up to $90,000 will be available for homebuyers earning between 121%-150% AMI.
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
No maximum purchase price limits
Properties cannot be occupied by tenants
Approved short sales/pays, foreclosed and REO properties and regular sales
- MIPA Program borrowers are required to purchase their own consumer home
property inspection report.
Example of how this program works?
We provide purchase assistance up to a maximum of $115,000. 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.
| Purchase Price of Home | $600,000 |
|---|---|
| Buyer’s Closing Costs: | $15,500 |
| TOTAL FUNDS NEEDED: | $615,500 |
| Funds Available: | |
| First Mortgage Amount (for which buyer qualifies) | $494,500 |
| Homebuyer Down Payment (1% of purchase price) | $6,000 |
| City Purchase Assistance Loan | $115,000 |
| TOTAL FUNDS AVAILABLE: | $615,500 |
| Total City loan in the above example is $115,000. | |
How to apply
Please contact one of our Participating Lenders English / Participating Lenders Spanish to get pre-qualified for a first mortgage and City loan or call (213) 808-8800 for more information. In order to apply for the program, you must apply with one of the LAHD Participating Lenders.
