Los Angeles LIPA Program

What is Los Angeles LIPA Program?

Los Angeles LIPA Program is a deferred second loan for homebuyers in Los Angeles County, California.

• The City of Los Angeles Low Income Purchase Assistance (LIPA) Program helps first-time, low-income homebuyers purchase homes within city limits. The program provides a deferred-payment subordinate loan at 0% interest for down payment, closing costs, and acquisition costs. Borrowers must contribute a minimum of 1% of the purchase price from their own funds. Income must be at or below 80% AMI.
• Up to $161,000 for down payment, closing costs, and acquisition.
• 0% interest with no monthly payments.
• 30-year deferred repayment (due on sale, transfer, first mortgage payoff, or at 30-year maturity).
• minimum 1% borrower contribution from own funds.
• available for single-family, condo, and townhome purchases within City of Los Angeles limits.
• Funding comes from Local Government.

How much assistance does it provide?

Los Angeles LIPA Program offers between $90,000 and $161,000 in assistance, depending on the award tier a buyer qualifies under.

• Award tier “Standard LIPA” — up to $161,000. Who qualifies: Income at or below 80% AMI; first-time homebuyer; City of LA resident purchasing within city limits.
• Buyer contribution: Minimum 1% of purchase price from borrower's own funds.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Los Angeles LIPA Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Sale, Transfer of Title, and Maturity Date.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Los Angeles LIPA Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Los Angeles LIPA Program limits household income to 80% of the area median income, which varies by county and household size.

• 2025 income limits (80% AMI, City of LA): 1 person $84,850; 2 persons $96,950; 3 persons $109,050; 4 persons $121,150; 5 persons $130,850; 6 persons $140,550.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Los Angeles LIPA Program caps the purchase price at $973,750.

• Eligible property types include Single Family, Condo, and Townhouse.

Where does it apply?

Los Angeles LIPA Program serves buyers purchasing in Los Angeles County, California.

How do you apply?

Applications for Los Angeles LIPA Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved homebuyer counseling agency; 8-hour education course required prior to application.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-Come-First-Served, and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.