If saving for a down payment feels like the thing standing between you and your own place, there’s good news: California and Los Angeles have some of the most generous down payment assistance programs in the country. Depending on where you buy and what you earn, you could get help ranging from a few percent of the price to more than $150,000.
Here’s what’s available, who it’s for, and the fine print that matters.
First, are you a “first-time” buyer?
Probably more often than you think. For most of these programs, you count as a first-time buyer if you haven’t owned a home you lived in during the past three years. So if you owned a condo years ago and have been renting since, you may still qualify.
Understanding income limits (what “AMI” means)
Almost every program sets a maximum household income, usually expressed as a percentage of area median income (AMI). AMI is the middle income for your county, adjusted for household size, and it’s updated every year. A program for buyers “at or below 80% AMI” is aimed at lower-income households, while “120% AMI” programs reach well into moderate incomes.
A few things to know:
- Household size matters. A family of four can earn significantly more than a single buyer and still qualify for the same program.
- Programs count income differently. Some look only at the borrowers on the loan; others count every adult who will live in the home. Ask your lender how each program calculates it.
- Limits change every year. CalHFA updated its limits in mid-2026, and city and county programs update on their own schedules. Being over the limit last year doesn’t mean you’re over it now.
The main programs at a glance
|
Program |
Help available |
Best for |
|
CalHFA MyHome |
Up to 3.5% of the price (FHA) or 3% (conventional), deferred loan |
Buyers anywhere in California within CalHFA income limits |
|
CalHFA Zero Interest Program (ZIP) |
0% deferred loan for closing costs, paired with a CalPLUS first loan |
Buyers short on closing-cost cash |
|
California Dream For All |
Up to 20% of the price, max $150,000, shared appreciation loan |
First-generation buyers; limited funding by lottery |
|
City of LA LIPA |
Up to $161,000, 0% deferred loan |
Lower-income buyers (up to 80% AMI) purchasing within City of LA limits |
|
City of LA MIPA |
Up to $115,000, 0% deferred loan |
Moderate-income buyers (80% to 120% AMI) in the City of LA |
|
LA County HOP |
Recently up to $85,000 or 20% of price, 0% deferred loan |
Buyers in unincorporated LA County and participating cities |
Amounts, income limits and funding windows change throughout the year. Always confirm current terms with the program or a participating lender.
CalHFA MyHome and ZIP: the workhorse programs
The California Housing Finance Agency (CalHFA) offers the most widely used assistance in the state. MyHome is a deferred second loan for your down payment and closing costs: no monthly payment, repaid when you sell, refinance or pay off your first mortgage. It’s paired with a CalHFA first mortgage through an approved lender.
The Zero Interest Program (ZIP) is a 0% deferred loan for closing costs, available with CalHFA’s CalPLUS first mortgage. CalPLUS carries a slightly higher rate, so compare the total cost with your lender.
CalHFA income limits updated in mid-2026 range from roughly $192,000 to $325,000 depending on the county and program. Many Valley households qualify.
California Dream For All: the big one (if you can get it)
Dream For All covers up to 20% of the purchase price, up to $150,000. Instead of interest, the state shares in your home’s appreciation when you sell or refinance. At least one borrower must be a first-generation homebuyer, all borrowers must be first-time buyers, and you must meet county income limits.
Funding is limited and awarded by lottery. The 2026 application window ran February 24 to March 16. If you want a shot at the next round, get pre-approved with a Dream For All lender and gather your documents now, including proof of your parents’ relationship and homeownership history.
City of Los Angeles: LIPA and MIPA
If you’re buying inside City of LA limits, including Chatsworth, Porter Ranch, Northridge, Granada Hills, Mission Hills, North Hills, Arleta, North Hollywood, Sherman Oaks, Studio City, Reseda and Winnetka, look at the city’s two programs:
- LIPA (Low Income Purchase Assistance): up to $161,000 for households earning up to 80% of area median income.
- MIPA (Moderate Income Purchase Assistance): up to $115,000 for households earning 80% to 120% of area median income.
Both are 0% deferred loans with a shared appreciation feature, require homebuyer education, and have purchase price limits. Funds are released in reservation rounds that fill quickly, so having a pre-approval with a participating lender ready matters.
LA County HOP: for buyers outside City of LA
The Los Angeles County Development Authority (LACDA) runs the Home Ownership Program (HOP) for unincorporated areas and participating cities, which have included Arcadia. Its moderate-income version (HOP120) has offered up to $85,000 or 20% of the price, with a maximum purchase price of $850,000. Not every city participates, so check the property address before you count on it. If you’re looking in Burbank, Glendale, San Fernando, Monrovia, Azusa, Glendora, Covina or West Covina, ask about local city programs too.
What most programs require
Every program has its own rulebook, but most share these basics:
- Primary residence. You must live in the home. Assistance can’t be used for investment properties or second homes.
- Homebuyer education. Most programs require a certified course, often online and completed in a weekend.
- A participating lender. Only approved lenders can offer these programs, and each lender may participate in some programs but not others.
- Minimum credit score. Typically in the 640 to 680 range.
- Purchase price limits. City and county programs cap the price of the home you can buy.
- Some of your own money. Certain programs require a small contribution from your own funds, such as 1% of the price.
- An eligible property. Single-family homes, condos and townhomes usually qualify; the home may need to pass a program inspection.
The fine print: what to know before you sign
Down payment assistance is one of the best tools available to first-time buyers, but it’s a loan with its own terms. Go in with your eyes open:
Shared appreciation
Dream For All, LIPA and MIPA use a shared appreciation structure. Instead of charging interest, the program receives its original amount back plus a percentage of the increase in your home’s value when you sell, refinance or pay off the loan. If your home appreciates significantly, that share can be substantial. The trade-off is that you made no monthly payments and got into a home years sooner. Ask your lender to model what repayment could look like at different sale prices.
Repayment triggers
Deferred loans typically come due when you sell, transfer the title, refinance, stop living in the home, or pay off your first mortgage. If you plan to refinance when rates drop, ask how that affects your assistance loan. Some programs allow a rate-and-term refinance if the assistance loan stays in place (called subordination); others require repayment.
Timing and paperwork
Program loans often take longer to close than a standard loan, because the program has to review and approve your file. Many sellers are fine with that, but your agent should build the right timeline into your offer so it’s still competitive.
What it can look like: two examples
Example 1: A condo in North Hollywood
Maria is buying a $600,000 condo with an FHA loan through CalHFA. Her minimum down payment is 3.5%, or $21,000. CalHFA MyHome can provide up to 3.5% of the price, which could cover that entire down payment as a deferred loan with no monthly payment. She still needs money for closing costs, so her lender also checks whether she qualifies for a closing-cost program or can negotiate a seller credit.
Example 2: A first home in Reseda
James and Tasha are both first-time buyers, and neither of their parents owned a home, which makes them first-generation buyers. They’re shopping for a $750,000 home. If they’re selected in a Dream For All round, the program could cover up to 20% of the price, or $150,000, reducing their loan amount and avoiding mortgage insurance. If they aren’t selected, their lender has a backup plan with CalHFA MyHome or, because the home is in City of LA, MIPA if their income fits.
Examples are hypothetical and for illustration only. Actual eligibility and amounts depend on current program terms.
Mistakes that cost buyers their assistance
- Waiting until you find a house to look into programs. Funding windows and pre-approvals take time. Start early.
- Working with a lender who doesn’t offer the program. Ask directly which programs they’re approved for.
- Making big financial changes during escrow. A new car loan or job change can disqualify you.
- Falling in love with a home over the price limit. Know your program’s cap before you tour.
- Writing an offer with too short a timeline. Program loans need a realistic closing date.
Can you stack programs?
Sometimes. CalHFA MyHome can be combined with ZIP, and some city or county programs allow layering with CalHFA. Dream For All generally must be paired with its own first mortgage. A lender who works with these programs every day can tell you exactly what combines with what.
How to get started
- Take a homebuyer education course. Most programs require one, and many are online.
- Talk to a participating lender. Not every lender offers these programs. Holly can introduce you to ones who do.
- Get pre-approved and ask which programs you qualify for based on your income and where you want to live.
- Watch for funding windows. City and state programs open in rounds; being ready on day one matters.
- Shop with an agent who knows the programs. Assistance loans have property and timing rules that affect how you write an offer.
Frequently asked questions
Is down payment assistance free money?
Usually it’s a deferred loan rather than a grant. You typically don’t make monthly payments, but you repay it (sometimes with a share of appreciation) when you sell, refinance or pay off the home.
Can I use down payment assistance on a condo?
Yes, most programs allow condos and townhomes, though the building and loan must meet program guidelines.
What credit score do I need?
Many programs require a minimum score around 640 to 680. City of LA programs list 660.
I make too much for LIPA. Is there anything for me?
Yes. CalHFA income limits are much higher, and MIPA covers moderate-income buyers. Many Valley households earning well into six figures still qualify for something.
Can I buy a home with family members using these programs?
Often yes, but every borrower usually has to meet the first-time buyer rules, and household income limits may count everyone living in the home.
How long does it take to close with down payment assistance?
Plan on about 30 to 45 days, and sometimes longer during busy funding rounds. Your lender and agent will set a closing date that fits the program.
What happens if I sell in a few years?
You repay the assistance loan from your sale proceeds, plus any shared appreciation if your program has it. There’s typically no penalty beyond the program’s repayment terms.
Want to know what you’d Not sure which program fits you? Holly will walk you through your options, connect you with lenders who specialize in assistance programs, and help you find homes that qualify. Call or text 818-521-0323 or request yours at https://yourhomegirlholly.com.
This article is for general information and isn’t legal or tax advice. Consult a CPA or attorney about your situation. [Holly Patterson, REALTOR® | DRE #01991142 | Keller Williams Realty]