Los Angeles buyer guide
Can You Use Zillow's FHA Down Payment Assistance to Buy a Home in Los Angeles?
The short answer
Los Angeles buyers may be able to use Zillow’s FHA down payment assistance, but eligibility isn’t confirmed: California is not on the excluded-state list, though neither published source names California as included. As of October 30, 2026, assistance can cover up to 3.5% of the lesser of the purchase price or appraised value as a second loan, subject to program requirements. (HousingWire, Zillow Home Loans launches FHA down payment assistance loan, checked October 30, 2026)
Justin Borges of The Borges Real Estate Team at eXp Realty (DRE #01940318, (213) 262-5092) writes offers for Los Angeles buyers and can help you compare Zillow's FHA assistance with CalHFA MyHome and LIPA. California is not on Zillow’s excluded-state list, though neither published Zillow source names it as included. The assistance is a second loan tied to a Zillow Home Loans FHA first mortgage.
Compare your price range and timeline
Text Justin the price range and timeline you're considering and he'll help you compare your options before you write an offer, or register for more information.
How does the assistance work?
As of October 30, 2026, the assistance is a second mortgage for up to 3.5% of the lesser of the purchase price or appraised value. The second loan carries 0% interest and no monthly payment. The FHA first mortgage remains a separate obligation, with a standard rate and monthly payment. (HousingWire, Zillow Home Loans launches FHA down payment assistance loan, checked October 30, 2026)
Zillow's release describes forgiveness after five years of owner occupancy and on-time mortgage payments, subject to program requirements. The release says the assistance is due in full if the buyer moves out, sells or refinances before year five. The published sources do not describe a year-by-year forgiveness schedule. (HousingWire, Zillow Home Loans launches FHA down payment assistance loan, checked October 30, 2026) Zillow's published sources do not address taxes. IRS says canceled debt is generally taxable unless an exclusion applies, so ask a tax professional how forgiveness would be treated for you. (IRS, Topic no. 431, Canceled debt, checked October 30, 2026)
HUD describes FHA's minimum required investment as generally 3.5%, and says acceptable assistance can include a second mortgage. A buyer whose required investment is covered by an eligible assistance loan may describe the purchase as zero down, but the FHA investment requirement still exists. Assistance is financing for that requirement, not a waiver of it. (HUD, FHA Myths v Facts, checked October 30, 2026)
Have a question about your own situation? Text (213) 262-5092
For a Los Angeles buyer, a second lien can affect proceeds when you sell or refinance. As of October 30, 2026, the assistance is up to 3.5% of the lesser of price or appraisal, at 0% interest, with forgiveness after five years subject to program requirements. (HousingWire, Zillow Home Loans launches FHA down payment assistance loan, checked October 30, 2026)
Who can qualify in Los Angeles?
California is not on Zillow's excluded-state list as of October 30, 2026, so Los Angeles buyers appear eligible to apply. Neither published Zillow source expressly names California as included, and Zillow's published terms leave the eligibility decision to its loan officer (Zillow Home Loans program page, checked October 30, 2026). Text Justin your price range and timeline to compare your options.
Published requirements include a credit score of at least 640, a primary residence and qualification for the full monthly payment. The program requires an FHA loan through Zillow Home Loans (Zillow release, checked October 30, 2026). Zillow's release lists no income cap and no first-time buyer requirement. You still must meet applicable income and underwriting requirements, including the ability to make the full payment. (HousingWire, Zillow Home Loans launches FHA down payment assistance loan, checked October 30, 2026)
Meeting the published score threshold alone does not establish approval. Your lender reviews your complete application and the property. Ask Justin to help you organize the home search around a realistic payment and to compare options with you; a lender makes the credit and program eligibility decisions.
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Zillow's published requirements do not list a Zillow agent requirement. That published list does not settle every possible condition (Zillow Home Loans program page, checked October 30, 2026). Justin is a licensed real estate agent, not a lender. Text Justin your price range and timeline to discuss your home search.
Compare your price range and timeline
Text Justin the price range and timeline you're considering and he'll help you compare your options before you write an offer, or register for more information.
What will you still pay?
The assistance is for the down payment, not closing costs. Zillow says the FHA first mortgage carries a standard rate and monthly payment, and FHA mortgage insurance still applies. Ask for an itemized Loan Estimate and keep funds available for the costs and reserves your lender identifies (Zillow Home Loans program page, checked October 30, 2026). (HousingWire, Zillow Home Loans launches FHA down payment assistance loan, checked October 30, 2026)
| Expense | What to ask |
|---|---|
| Down payment | How much assistance is available for this price and appraisal? |
| Closing costs | What cash is needed for lender, escrow, title and prepaid items? |
| Monthly payment | What are the principal, interest, mortgage insurance, taxes and insurance? |
| After closing | How much remains for maintenance, repairs and emergencies? |
For a Los Angeles home, compare insurance, property taxes and any association dues for each home, and leave room for maintenance.
A seller credit may help with eligible closing costs if negotiated and permitted by the loan. A credit is not guaranteed and does not replace the lender's review of allowable costs. The assistance covers the down payment only; closing costs and FHA mortgage insurance remain (Zillow Home Loans program page and release, checked October 30, 2026).
Rather talk it through? Call (213) 262-5092
How much assistance could a Los Angeles buyer receive?
The following figures are hypothetical illustrations, not offers or typical results. The first two assume the price and appraisal match; all assume the buyer qualifies for the full published assistance. As of October 30, 2026, the program's maximum is 3.5% of the lesser of price or appraised value. Actual amounts and financing depend on underwriting and the loan documents. (HousingWire, Zillow Home Loans launches FHA down payment assistance loan, checked October 30, 2026)
| Hypothetical price and matching appraisal | Illustrative maximum assistance | What remains |
|---|---|---|
| $600,000 | $21,000 | Closing costs and the first mortgage remain. |
| $800,000 | $28,000 | Closing costs and the first mortgage remain. |
| $800,000 price, $600,000 appraisal | $21,000 | A lower appraisal can create a financing gap. |
Each illustration uses the program terms checked October 30, 2026. The mismatch example shows the calculation, not a prediction of an appraisal. HUD's adjusted-value rules and the program's lesser-of cap mean a lower appraisal can reduce both available assistance and maximum financing. That combined result is an inference from the rules, so have your lender calculate your actual figures. (HUD, Handbook 4000.1, checked October 30, 2026) (HousingWire, Zillow Home Loans launches FHA down payment assistance loan, checked October 30, 2026)
A low appraisal can create a financing gap, so discuss the price and available funds before choosing a response.
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HUD's Los Angeles County limit for a one-family FHA loan in calendar year 2026 is $1,249,125, checked October 30, 2026. That figure limits the loan amount, not the purchase price. A home below the limit is not automatically eligible, and a purchase price above it does not alone determine the outcome. The lender calculates the permitted loan for your case. (HUD, FHA Mortgage Limits lookup, checked October 30, 2026)
Compare your price range and timeline
Text Justin the price range and timeline you're considering and he'll help you compare your options before you write an offer, or register for more information.
Which other assistance options should you compare?
Compare the amount you need to close, the payment you can carry, the repayment terms and the location rules. CalHFA MyHome is a deferred-payment loan for down payment or closing costs, requires a CalHFA first mortgage and is repaid rather than forgiven. Its lender and borrower rules differ from Zillow's. (CalHFA, MyHome Assistance Program Handbook, checked October 30, 2026)
Zillow's assistance requires its own FHA first mortgage (Zillow release, checked October 30, 2026), while MyHome requires a CalHFA first mortgage from an approved lender. Based on those published rules, the two do not appear to combine. That is an inference, not an express prohibition published by either program; confirm your proposed financing with the lender. (CalHFA, Approved Lenders, checked October 30, 2026)
The City of Los Angeles Low Income Purchase Assistance program, or LIPA, is a separate option for qualifying first-time buyers purchasing within city boundaries. It is a deferred loan with shared appreciation, not a forgiven grant. City boundaries matter: a mailing address in the Los Angeles area does not necessarily establish that a property is inside the city. (City of Los Angeles Housing Department, Helping Low-Income, First-Time Homebuyers, checked October 30, 2026)
Have a question about your own situation? Text (213) 262-5092
As checked October 30, 2026, LIPA's next listed reservation round is November 18, 2026, and the schedule can change. Remaining funding cannot be confirmed from the published page. California Dream For All is closed to new applicants; its application portal closed March 16, 2026, and a future round is unconfirmed. (City of Los Angeles Housing Department, Helping Low-Income, First-Time Homebuyers, checked October 30, 2026) (CalHFA, California Dream For All, checked October 30, 2026)
Whether LIPA can be combined with Zillow's assistance has not been confirmed. Text Justin your price range and timeline to compare the home-search implications and shape an offer.
How should you compare Loan Estimates?
Request Loan Estimates from more than one lender for comparable loan scenarios. Compare the rate, points, lender charges, mortgage insurance, estimated cash to close and total monthly payment, along with the terms of any assistance. Ask each lender to explain differences in assumptions and whether the estimate includes the same price, down payment and closing date.
The Zillow assistance is tied to a Zillow Home Loans FHA first mortgage, but you can still compare another lender's FHA offer or a different financing program. A lower initial cash requirement by itself does not tell you which option best fits your plans. Look at the first mortgage and second loan together, including what happens if you leave or refinance.
Prefer to learn first? Register for more information. Join the free first-time buyer webinar
For a Los Angeles purchase, share the same property taxes, insurance assumptions and association dues where possible. A lender's estimate can change as property details and underwriting become clearer. Review the updated numbers before removing contingencies or committing money; your lender and escrow can explain the figures for your actual transaction.
Bring Justin the Loan Estimates you receive to discuss your home search and offer. Compare cash to close and the full monthly payment alongside the five-year repayment trigger.
Compare your price range and timeline
Text Justin the price range and timeline you're considering and he'll help you compare your options before you write an offer, or register for more information.
What does your agent do when you make an offer?
I help you search Los Angeles homes within your budget, discuss comparable sales, prepare an offer and coordinate the contract process with the lender and escrow. My role is real estate representation; the lender decides loan approval and assistance eligibility. Your offer should reflect your actual financing, available funds and the deadlines you agree to in the contract.
Discuss the written buyer representation agreement, its services, compensation, duration and scope before signing. California DRE describes the agreement requirement and the information it must include. Review the agreement you are offered and ask questions about its terms. (California DRE, Changes to Real Estate Representation, checked October 30, 2026)
Condition and appraisal matter on an FHA purchase. HUD says homes must meet FHA requirements for structural soundness, safety and livability. The appraiser and lender determine whether the property satisfies their requirements. (HUD, FHA Myths v Facts, checked October 30, 2026)
When does this program fit your plans?
For a Los Angeles buyer, the program may be worth comparing if your main obstacle is the down payment, you can qualify for the full monthly obligation and you expect to occupy the home long enough to satisfy the assistance terms. The published assistance does not pay closing costs, so having a plan for those costs and a reserve remains essential.
Rather talk it through? Call (213) 262-5092
Look closely at alternatives if you expect a job transfer, a move or a refinance before the forgiveness period, or if closing costs are your larger obstacle. Zillow's release says moving out, selling or refinancing before year five makes the assistance due in full. Consider that five-year trigger against your expected timeline. (HousingWire, Zillow Home Loans launches FHA down payment assistance loan, checked October 30, 2026)
- Decide whether you expect to keep the home at least five years.
- Get Loan Estimates from more than one lender and compare cash to close and the monthly payment.
- Text or call Justin with your price range and timeline before you write an offer.
- Register for more information if you are not ready to talk.
Frequently asked questions
Is the assistance a grant?
The published terms describe a second mortgage with no interest or monthly payment, subject to program requirements. It can be forgiven after five years.
Do I have to be buying my first home?
Zillow's release does not list a first-time buyer requirement. Text Justin your price range and timeline to compare your options.
Can the assistance pay my escrow and title charges?
No. The assistance applies to the down payment; compare escrow and title charges on your Loan Estimate.
Have a question about your own situation? Text (213) 262-5092
What if my plans change after I buy?
Zillow's release says the assistance is due in full if you move out, sell or refinance before year five. Consider that trigger against how long you expect to stay.
Can I work with Justin on the purchase?
Zillow's published requirements do not list a Zillow agent requirement. Justin can help you compare home-search options and write an offer.
Does assistance make the monthly payment disappear?
No. The FHA first mortgage carries its own monthly payment and mortgage insurance. Taxes, insurance and any association dues also affect your budget.
Compare your price range and timeline
Text Justin the price range and timeline you're considering and he'll help you compare your options before you write an offer, or register for more information.
Sources
- Zillow Home Loans launches FHA down payment assistance loan, HousingWire (housingwire.com). Checked October 30, 2026.
- Topic no. 431, Canceled debt, irs.gov. Checked October 30, 2026.
- FHA Myths v Facts, HUD, June 2025 (hud.gov). Checked October 30, 2026.
- Handbook 4000.1, HUD Handbook 4000.1 (hud.gov). Checked October 30, 2026.
- FHA Mortgage Limits lookup, HUD, CY2026 (entp.hud.gov). Checked October 30, 2026.
- MyHome Assistance Program Handbook, CalHFA, Oct 19, 2026 (calhfa.ca.gov). Checked October 30, 2026.
- Approved Lenders, CalHFA (calhfa.ca.gov). Checked October 30, 2026.
- Helping Low-Income, First-Time Homebuyers, LAHD, Sept 23, 2026 (housing.lacity.gov). Checked October 30, 2026.
- California Dream For All, CalHFA, read Oct 30, 2026 (calhfa.ca.gov). Checked October 30, 2026.
- Changes to Real Estate Representation, California DRE, Nov 14, 2024 (dre.ca.gov). Checked October 30, 2026.
About the author
Justin Borges
REALTOR® | CA DRE #01940318
Justin writes LA Metro Home Finder’s guides to 30+ communities across the San Gabriel Valley, Northeast LA, and greater Los Angeles, and has closed $200M+ in career sales with a 106% average list-to-sale ratio.
Justin has held an active California DRE salesperson license since October 2013. View Justin’s author profile.
This guide is educational and is not legal, tax, title, lending, or insurance advice. Contract forms, statutes, and lender rules change. Confirm the terms that apply to your sale with your escrow officer, title officer, lender, or a California real estate attorney.
