How Much Down Payment for a House in LA? (2026 Guide) | The Borges Team
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The Borges Team
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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
Not sure which loan type is right for you? Let's talk through your options.
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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:

LIPA (Low Income Purchase Assistance) Up to $161,000

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

MIPA (Moderate Income Purchase Assistance) Up to $115,000

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

LA County HOP Up to $100,000

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

What "Silent Second" Means

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.

Want to check if you qualify for DPA programs? I can point you to the right resources.
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With vs. Without Assistance: The Math

$650,000 Home: Traditional vs. DPA
Traditional 20% Down $130,000 from savings
With MIPA (up to $115K) ~$6,500 from savings (1%)
Your Savings Difference $123,500

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+)

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!)
🎉 2026 Tax Benefit: PMI Is Now Deductible

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.

The Opportunity Cost

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

Total Cash to Close: $650K Home with MIPA
Your Down Payment (1%) $6,500
Closing Costs (est. 2-3%) $13,000-$19,500
Less: Seller Credits (if negotiated) -$5,000 to -$15,000
Estimated Cash to Close $10,000-$20,000

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) 444-2225

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Frequently Asked Questions

How much down payment do I need for a house in LA?
Minimum varies by loan: VA 0%, FHA 3.5%, Conventional 3-5%. With LA assistance programs, your out-of-pocket can be as low as 1%.
How much is 20% down on an LA home?
On the median LA home (~$900K), 20% is $180,000. On a $700K home, it's $140,000. On $500K, it's $100,000.
Can I buy a house in LA with no money down?
Yes with VA loans (veterans). For others, DPA programs can cover your down payment, requiring only ~1% from your funds plus closing costs.
What down payment assistance is available in LA?
LIPA (up to $161K), MIPA (up to $115K), and LA County HOP (up to $100K). All are silent second loans with no monthly payments.
Is 20% down better than using assistance?
20% avoids PMI but if saving takes years, DPA lets you buy now and benefit from appreciation. Many LA buyers build more wealth buying sooner with assistance.
Still have questions about down payments? Happy to walk through your specific numbers.
📞 (213) 444-2225
JB

Justin Borges

Team Leader, The Borges Real Estate Team | DRE# 01940318

Disclaimer: This article provides general information about down payments in Los Angeles. Program terms, income limits, and availability change frequently. Consult with a qualified lender for current requirements and eligibility. The Borges Real Estate Team does not provide financial advice.