How Much Down Payment Do You Need for a House in Los Angeles?
The traditional answer is 20%, but most LA buyers don't put that much down. On a $700,000 home, 20% is $140,000. That's why LA offers down payment assistance programs providing up to $161,000, allowing many buyers to purchase with just 1% from their own funds. Here's what you actually need for each loan type and how to access assistance.
Down Payment by Loan Type
| Loan Type | Minimum Down | On $700K Home |
|---|---|---|
| VA Loan (Veterans) | 0% | $0 |
| FHA Loan | 3.5% | $24,500 |
| Conventional (minimum) | 3% | $21,000 |
| Conventional (avoid PMI) | 20% | $140,000 |
| Jumbo (over $766,550) | 10-20% | $70,000-$140,000 |
Real Numbers: Down Payment by Home Price
| Home Price | 3.5% (FHA) | 10% | 20% |
|---|---|---|---|
| $500,000 | $17,500 | $50,000 | $100,000 |
| $600,000 | $21,000 | $60,000 | $120,000 |
| $700,000 | $24,500 | $70,000 | $140,000 |
| $800,000 | $28,000 | $80,000 | $160,000 |
| $900,000 | $31,500 | $90,000 | $180,000 |
LA Down Payment Assistance Programs
Los Angeles offers some of the most generous down payment assistance in the country:
Amount: Up to $161,000 for down payment and closing costs
Your Contribution: As little as 1% from your own funds
Repayment: Silent second loan with shared appreciation. No monthly payments
Eligibility: Low-income limits, first-time buyer, 660+ FICO, City of LA
Amount: Up to $115,000 for down payment and closing costs
Your Contribution: As little as 1% from your own funds
Repayment: Silent second loan. No monthly payments for 30 years
Eligibility: Moderate-income limits, first-time buyer, 660+ FICO, City of LA
Amount: Up to $85,000 (HOP-120) or $100,000 (HOP-80)
Coverage: Unincorporated LA County and participating cities
Repayment: Silent second loan
Eligibility: Income limits based on AMI, first-time buyer
A silent second loan has no monthly payments. You don't pay it back until you sell, refinance, or (for some programs) after 30 years. It's essentially free money while you live in the home.
With vs. Without Assistance: The Math
That $123,500 you don't have to save could mean buying 5-10 years sooner, and benefiting from appreciation during that time.
What's Your Buying Power?
See how your down payment affects what you can afford
Combined income before taxes
Car payments, student loans, credit cards, etc.
Cash available (DPA programs can add $100K+)
Find Out What You Qualify For
I'll check current program availability and show you exactly how much assistance you can access.
Free consultation – No pressure
Should You Put 20% Down or Use Assistance?
Arguments for 20% down:
- No PMI (saves $200-400/month on most LA loans)
- Lower monthly payment
- More equity from day one
- Stronger offer in competitive situations
Arguments for using DPA with less down:
- Buy now instead of saving for 5-10 more years
- Start building equity immediately
- Benefit from appreciation while you'd otherwise be renting
- Keep cash reserves for emergencies and improvements
- Silent second loans have no monthly payment impact
- PMI is now tax deductible (new for 2026!)
Under the Big Beautiful Bill Act, Private Mortgage Insurance is now treated as deductible mortgage interest. If you put less than 20% down, the PMI you pay ($150-$300/month typically) can reduce your tax bill. At a 24% tax bracket, $2,400/year in PMI = $576 back in tax savings.
If it takes you 5 years to save $130,000 for 20% down, and LA homes appreciate 4% annually, that $650,000 home becomes $790,000, requiring an even larger down payment. Many buyers are better off buying sooner with assistance.
Total Cash Needed: Down Payment + Closing Costs
In 2026's buyer-friendly market, many sellers are offering closing cost credits. This can further reduce your out-of-pocket.
How to Qualify for Down Payment Assistance
Step 1: Check income limits. Programs have caps that vary by household size
Step 2: Verify first-time buyer status. Most programs require no ownership in past 3 years
Step 3: Complete homebuyer education. An 8-hour HUD-approved course is required
Step 4: Work with a participating lender. Not all lenders offer these programs
Step 5: Get pre-approved. Your lender will determine which programs you qualify for
Ready to See Your Down Payment Options?
I'll connect you with lenders who specialize in LA assistance programs and help you understand your real numbers.
Call or Text (213) 444-2225Text works too – No obligation
