Los Angeles Down Payment Assistance: Up to $161K for First-Time Buyers (2026)
The Low Income Purchase Assistance (LIPA) program offers up to $161,000 in down payment assistance for first-time homebuyers purchasing within the City of Los Angeles. This deferred-payment loan carries 0% interest with no monthly payments—but funding is limited and distributed through a reservation system with only 18-36 slots released per round. Success requires strategic preparation before reservation dates open.
2025-2026 Reservation Schedule
LAHD releases limited loan reservations throughout the year. Mark these dates:
Schedule subject to change. Check housing.lacity.gov for current dates.
How the LIPA Program Works
LIPA is administered by the Los Angeles Housing Department (LAHD) and provides subordinate "soft second" loans to help low-income, first-time buyers bridge the gap between their first mortgage and the home's purchase price. Unlike programs with monthly payments, LIPA defers repayment for 30 years or until a triggering event occurs.
LIPA vs. MIPA: Which Program Fits You?
LAHD offers two programs based on income level. LIPA serves low-income households (up to 80% AMI) with higher assistance amounts, while MIPA serves moderate-income households (80-120% AMI) with slightly lower maximums.
| Feature | LIPA (Low Income) | MIPA (Moderate Income) |
|---|---|---|
| Maximum Assistance | $161,000 | $115,000 |
| Income Limit | Up to 80% AMI | 80-120% AMI |
| Interest Rate | 0% | 0% |
| Monthly Payment | None (deferred) | None (deferred) |
| Shared Appreciation | Yes | Yes |
| Term | 30 years | 30 years |
| Minimum Credit Score | 660 | 660 |
2025 Income Limits for LIPA (80% AMI)
All adults 18 and older in your household count toward total income. These limits reflect Los Angeles County's 2025 80% Area Median Income threshold:
| Household Size | 1 Person | 2 Persons | 3 Persons | 4 Persons |
|---|---|---|---|---|
| LIPA Max Income | $84,850 | $96,950 | $109,050 | $121,150 |
| Household Size | 5 Persons | 6 Persons | 7 Persons | 8 Persons |
|---|---|---|---|---|
| LIPA Max Income | $130,850 | $140,550 | $150,250 | $159,950 |
Source: California HCD 2025 State Income Limits, effective April 2025
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View LA City Listings →LIPA Lottery Strategy: 5 Steps to Secure Funding
With only 18 reservations per round and high demand, preparation is everything. Here's your strategic timeline:
Get Pre-Qualified 60-90 Days Before
Contact an LAHD-participating lender immediately. You need both first mortgage pre-approval AND confirmation of LIPA program eligibility before reservation day. Don't wait—lender backlogs increase near reservation dates.
Complete 8-Hour Homebuyer Education
This is mandatory and cannot be skipped. Use an LAHD-approved provider like NPHS, KCCD, or West Angeles CDC. Complete this early—courses fill up and you'll need the certificate before applying.
Verify Property Location Eligibility
LIPA only works within incorporated City of LA boundaries. Use the LA District Finder to confirm any property you're considering is in a valid LA City Council district—not unincorporated county territory.
Prepare Your 1% Down Payment
Minimum 1% of purchase price must come from your own funds (not gifted). For a $600K home, that's $6,000 cash. Have this documented and ready—you may need more than 1% depending on the gap calculation.
Monitor LAHD Announcements
Sign up for LAHD updates at housing.lacity.gov. Reservation dates can change and additional funding rounds may be announced. Your lender should also alert you, but don't rely solely on them.
Pro Tip: Work With a LIPA-Experienced Agent
Reservation timing is critical. An agent who understands LIPA's requirements can help you identify LA City properties, coordinate with participating lenders, and ensure your offer is structured correctly before a reservation slot opens.
Understanding Shared Appreciation
LIPA's "shared appreciation" provision is the trade-off for 0% interest and no monthly payments. Here's how it works:
The City calculates a ratio: your LIPA loan amount divided by the home purchase price. When you sell, transfer title, pay off your first mortgage, or reach year 30, you repay the original LIPA loan PLUS the City's share of appreciation.
Example: $120K LIPA Loan on $600K Purchase
Ratio: $120,000 ÷ $600,000 = 20%
If home sells for $750K: Appreciation = $150,000
City's share: 20% × $150,000 = $30,000
Total repayment: $120,000 + $30,000 = $150,000
The shared appreciation makes LIPA less attractive if you plan to sell quickly in a rising market. However, for buyers who intend to stay long-term, the 0% interest and deferred payments provide significant monthly savings that often outweigh the appreciation share.
LIPA Eligibility Requirements
- First-time homebuyer: No ownership interest in any real property during the past 3 years
- U.S. citizen, lawful permanent resident, or qualified alien
- Household income at or below 80% AMI (see income limits above)
- Minimum 660 credit score (middle FICO)
- Maximum DTI: 36-45% back-end, up to 50% with compensating factors
- 8-hour homebuyer education course from LAHD-approved provider
- Minimum 1% down payment from borrower's own funds
- Property in City of Los Angeles (not LA County or other cities)
- Single-family, townhome, or condo (1 unit only, no multi-family)
- Property cannot be tenant-occupied (unless tenant is the buyer)
Questions About LIPA Eligibility?
Get personalized guidance on income limits, lottery timing, and backup DPA options.
LIPA-Approved Homebuyer Education Providers
Complete your 8-hour course with one of these LAHD-approved agencies:
- Neighborhood Partnership Housing Services (NPHS)
- Korean Churches for Community Development (KCCD)
- West Angeles Community Development Corporation
- Money Management International, Inc.
- Los Angeles Neighborhood Housing Services
Contact LAHD at (213) 808-8800 or [email protected] for the current list and to verify course schedules.
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Browse LA City Homes →Frequently Asked Questions
How much can I get from the LA LIPA program?
The LIPA program provides up to $161,000 in down payment, closing cost, and acquisition assistance. The exact amount depends on the gap between your purchase price plus closing costs and your first mortgage loan plus down payment.
What are the income limits for LIPA in 2025?
LIPA serves households at or below 80% AMI. For 2025, limits are: 1 person ($84,850), 2 persons ($96,950), 3 persons ($109,050), 4 persons ($121,150), 5 persons ($130,850), 6 persons ($140,550).
When are the LIPA lottery reservation dates?
LAHD releases limited reservations throughout the year. Upcoming dates include November 12, 2025 (18 slots) and March 4, 2026 (18 slots). Dates are subject to change—check housing.lacity.gov for current schedule.
Do I have to repay the LIPA loan?
LIPA is a deferred-payment loan with 0% interest—no monthly payments required. The loan plus shared appreciation is due when you sell, transfer title, refinance your first mortgage, or at the end of 30 years.
What is shared appreciation and how does it work?
Shared appreciation means the City shares in your home's value increase. The ratio equals your LIPA loan amount divided by the purchase price. If you receive $100K on a $500K home (20%), the City receives 20% of any appreciation when you sell or the loan becomes due.
Can I use LIPA anywhere in Los Angeles County?
No—LIPA is only for properties within the incorporated City of Los Angeles. Unincorporated LA County areas and other cities (like Pasadena, Long Beach, or Glendale) do not qualify. Use the LA City district finder to verify eligibility.
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