Buying a home in California; especially in cities like Los Angeles, can feel financially out of reach for many first-time buyers. But there’s good news: California and Los Angeles County offer a variety of mortgage assistance programs designed to help qualified buyers with down payments, closing costs, and even interest rates.
If you're thinking about making the leap into homeownership, here's what you should know about the programs that could help make it happen.
Who Qualifies for Mortgage Assistance?
Most programs are aimed at:
- First-time homebuyers (defined as someone who hasn’t owned a home in the last 3 years)
- Buyers with low to moderate incomes (often defined as 80%–150% of the area median income)
- Buyers who plan to occupy the home as their primary residence
Top Programs in California & Los Angeles
1. California Dream For All Shared Appreciation Loan (CalHFA)
- Status: Currently paused but expected to return in future rounds
- How it works: Offers a down payment loan of up to 20% of the purchase price. In exchange, the state shares in the home’s appreciation when you sell or refinance.
- Pros: No monthly payments on the second loan
- Cons: You share future equity gains with the state
2. CalHFA First-Time Homebuyer Programs
The California Housing Finance Agency (CalHFA) offers several loan products and assistance programs for eligible buyers.
Key Programs:
- MyHome Assistance Program – Offers up to 3.5% of the home price toward down payment or closing costs
- CalPLUS FHA and CalPLUS Conventional Loans – Comes with fixed interest rates and can be combined with MyHome
- ZIP (Zero Interest Program) – Provides closing cost help with a deferred, 0% interest loan
Eligibility Highlights:
- Must complete a homebuyer education course
Credit score of at least 660 is generally required
Income limits vary by county
3. Los Angeles County First Time Homebuyer Program
- What it offers: Up to $75,000 as a deferred-payment "silent" second mortgage for down payment or closing costs
- Who qualifies: First-time buyers purchasing in unincorporated LA County or participating cities
- Income limits: Generally 80% of area median income or below
4. City of Los Angeles LIPA Program (Low Income Purchase Assistance)
- What it offers: Up to $90,000 in down payment assistance
- Who qualifies: First-time buyers in the City of LA earning no more than 80% of AMI
- Property limits: Price caps apply and must be a single-family or condo (no duplexes or rentals)
5. Bank-Sponsored Grant Programs
Many national and regional banks offer first-time buyer grant programs that can be stacked with state assistance:
- Bank of America: $10,000 toward down payment + $7,500 in closing cost help (select zip codes)
- Chase Homebuyer Grant: Up to $7,500 for eligible buyers in qualifying census tracts
- Citi, Wells Fargo, and others also offer proprietary assistance
Important Things to Know
- Most programs require you to live in the home for a minimum number of years or repay the assistance.
- Homebuyer education courses are often required and can be completed online.
- Pre-approval with participating lenders is essential—many programs have a limited network of approved mortgage providers.
- Timing matters. Some funds are limited and offered on a first-come, first-served basis or only during certain times of the year.
Final Thoughts
Homeownership is still possible in LA, even when the market feels out of reach. Whether you're buying your first home or coming back to the market after a break, these assistance programs can reduce the barriers and make your move more affordable.
At the Stephanie Younger Group, we work with trusted mortgage professionals who understand these programs inside and out. We’ll help you connect with the right resources so you can shop with confidence and a clear game plan.
Disclaimer: This blog is for informational purposes only and does not constitute financial or legal advice. Buyers should consult with a licensed lender or housing counselor to determine their eligibility for any specific assistance program.