Down Payment Assistance Options In Los Angeles County

Think you need 20 percent down to buy a home in Los Angeles County? You have more options than you might expect. If you plan to purchase in 2026, the right down payment assistance can lower your cash-to-close and help you become a homeowner sooner. In this guide, you’ll learn how assistance works, where to verify programs for LA County and the San Fernando Valley, what to expect for eligibility, and a step-by-step timeline to get ready. Let’s dive in.

What down payment help looks like

Grants

Some programs provide one-time grants. These funds reduce what you bring to closing and do not create a lien. Grants are limited and open or close based on funding, so you need to confirm availability.

Forgivable loans

These are second mortgages that are forgiven over time if you meet the rules, such as living in the home as your primary residence for a set number of years. If you sell or refinance before the forgiveness period ends, you may have to repay a portion.

Deferred soft seconds

A soft second is a loan recorded as a second lien with no monthly payment. It is typically due when you sell, refinance, or pay off the first mortgage. Many local public programs use this structure.

Low or zero interest seconds

Some programs offer repayable second mortgages with a low interest rate and a set payment schedule, or a balloon due at payoff. Your lender will calculate how this affects your total monthly payment and debt-to-income ratio.

Mortgage Credit Certificates (MCCs)

An MCC is not cash at closing. It is a federal tax credit that can reduce your federal tax liability each year if you qualify. Program rules and any potential recapture apply, so confirm details with the administrator and consult your tax advisor.

Where to find programs in LA County

Statewide: CalHFA

The California Housing Finance Agency administers popular statewide assistance options and works through approved lenders. Start by reviewing current offerings and education requirements on the CalHFA site. You can explore programs on the California Housing Finance Agency website.

County-level: Los Angeles County Development Authority (LACDA)

LA County agencies manage countywide initiatives and may offer soft seconds or targeted-area funds. Check current notices and program descriptions with the Los Angeles County Development Authority.

City of Los Angeles

If the home is inside Los Angeles city limits, the City’s housing department often runs homebuyer assistance that may include deferred or forgivable loans, plus counseling requirements. Review eligibility and any approved lender lists with the City of Los Angeles Housing Department.

San Fernando Valley municipalities

Many incorporated cities in and around the Valley, such as Burbank, Glendale, Pasadena, and San Fernando, may have their own first-time buyer programs or partnerships with nonprofits. If you have a target city, verify whether that city runs a separate program, has purchase price caps, or participates in county or state offerings.

Nonprofits and HUD-approved counseling agencies

Public programs often require homebuyer education. Local nonprofits can also help with applications and credit coaching. Start with Neighborhood Housing Services of Los Angeles County and search for counseling partners using the HUD counselor finder.

Lenders and mortgage programs

Down payment assistance is designed to work with primary mortgages like FHA, VA, USDA, and conventional loans, but rules vary. Many buyers pair assistance with conventional options such as Fannie Mae HomeReady or Freddie Mac Home Possible. Most assistance programs require you to use an approved or participating lender, so choose a lender with proven local DPA experience.

Eligibility basics in Los Angeles County

Income limits and AMI

Programs set income limits based on Area Median Income and household size. Limits change annually and vary by program. Confirm current thresholds for Los Angeles County using official sources like HUD’s income limits, and then compare them to the specific program you choose.

First-time buyer definition

Many programs use a three-year lookback. If you have not owned a home in the past three years, you may qualify as a first-time buyer. Some programs allow exceptions for certain life events or occupations, so ask the administrator about your situation.

Purchase price caps and target areas

Expect caps by property type and location to keep homes affordable. Some programs prioritize certain neighborhoods or redevelopment areas. Verify the cap for your target city or unincorporated area before you shop.

Credit, contribution, and education

You will likely need a minimum credit score and may need to bring some funds to closing. Homebuyer education is commonly required, and you may need your education certificate before you can receive a conditional approval.

Property and occupancy rules

Most programs focus on owner-occupied homes. Single-family homes and many condos are eligible, but investment properties are not. Your lender can confirm condo eligibility and program-specific property rules.

Your quick-prep checklist

• Review credit reports and plan for score improvements
• Gather pay stubs, W-2s or tax returns, and 60 days of bank statements
• Obtain a government-issued ID and document all sources of funds
• Complete a HUD-approved homebuyer education course
• Keep a file of all program forms and your certificate of completion

How assistance fits with your mortgage

Down payment assistance is usually a second lien recorded behind your first mortgage. Program documents will explain if the second is forgivable, deferred, or repayable and when it comes due. Read the forgiveness schedule and any resale or refinance restrictions carefully.

Programs specify whether funds can be used for down payment, closing costs, or both. Your loan type and the program’s rules will determine how much of your cash-to-close can be covered. Your lender will still underwrite your first mortgage payment and any second-lien payment if applicable.

If your primary loan requires mortgage insurance, assistance can reduce your cash requirement but does not automatically remove mortgage insurance unless your equity increases enough to change your loan-to-value. MCCs can reduce federal tax liability for eligible buyers. For tax questions or potential recapture, consult a tax advisor.

Funding cycles and availability

Public funds open and close based on budgets. Some programs operate on first-come-first-served timelines, while others use waitlists. Availability in 2026 will depend on future appropriations, so build a backup plan and confirm timing before you make offers.

Award sizes vary widely and are capped by each program. Some options provide several thousand dollars, while others can cover a larger share of your down payment. Always verify current maximums and whether funds can be applied to closing costs.

A 2026 timeline for San Fernando Valley buyers

12–18 months before your target purchase

• Check your credit and build a simple savings plan for reserves
• Research statewide, county, city, and nonprofit programs that fit your target area
• Enroll with a HUD-approved counselor and start your education course
• Create a tracking sheet for each program’s income limits, price caps, and lender requirements

6–12 months before

• Interview lenders who regularly close DPA loans in LA County and the Valley
• Ask for a written summary of which programs you qualify for and how they integrate with FHA, VA, or conventional options
• Complete homebuyer education and keep your certificate on file
• Begin prequalification and gather documentation in a single, organized folder

1–3 months before making an offer

• Reconfirm program funding, deadlines, and whether you need conditional approval before or with your offer
• Obtain conditional DPA approval and confirm the exact documents needed at escrow
• Coordinate timelines with your lender and title so funds can be released on time

At offer and through escrow

• Provide your purchase contract to the program administrator and fulfill all conditions
• Keep your lender, title, and the program administrator aligned on closing statements
• Track every milestone so the DPA commitment letter and wire arrive before closing

How to start today with trusted resources

• Review statewide options and lender participation at the California Housing Finance Agency
• Check county-level updates at the Los Angeles County Development Authority
• If your search is inside city limits, verify city programs at the City of Los Angeles Housing Department
• Enroll in education and get prep support with Neighborhood Housing Services of Los Angeles County or find a counselor through the HUD counselor finder
• Ask lenders about pairing DPA with Fannie Mae HomeReady or Freddie Mac Home Possible

Questions to ask a lender:

• Which LA County or Valley programs have you closed in the last 12 months?
• Are you an approved lender for CalHFA, the City of Los Angeles, or county programs?
• How will the assistance change my cash-to-close, total monthly payment, and timeline?
• What documents do you need from me right now to secure conditional approval?

Work with a local guide who understands both sides

Choosing the right assistance is only half the equation. You also need a team that can help you target the right neighborhoods, write competitive offers, and coordinate program timelines with your lender and escrow so funds arrive on time. Our team serves buyers across the San Fernando and Santa Clarita Valleys and greater Los Angeles, and we offer multilingual support in English, Spanish, and German.

If you are planning a 2026 purchase and want a clear plan from first conversation to keys in hand, connect with us for a personal strategy session. Start with Lorraine Cruz to map your options and create a step-by-step path to homeownership.

FAQs

Will down payment assistance raise my mortgage rate in Los Angeles County?

• DPA itself usually does not directly change your first-mortgage rate, but lender pricing and investor rules can vary by program, so work with a participating lender to see any impact.

Do I still need money for closing if I use assistance?

• Often yes; some programs allow funds for closing costs, but many do not cover everything, so plan for some out-of-pocket funds unless your program explicitly covers all costs.

Can I combine a state program with a city or county program?

• Sometimes; combinations are allowed if lender and program rules align, so confirm stack order and compatibility with your lender and each program administrator.

What if I buy in a specific San Fernando Valley city like Burbank or Glendale?

• Check whether that city runs its own program or coordinates with county or nonprofit partners, and verify purchase price caps and income limits for that city.

How do Mortgage Credit Certificates help first-time buyers?

• An MCC can reduce your federal tax liability each year if you qualify, but it is not cash at closing and may have recapture rules, so confirm details with the issuer and your tax advisor.

When should I complete homebuyer education for program eligibility?

• Complete it early, ideally 6 to 12 months before you plan to buy, so your certificate is ready for conditional approvals and program applications.