How it works
LIPA (Low Income Purchase Assistance) is the City of Los Angeles's flagship DPA for households at or below 80% of Los Angeles-area AMI. It's administered by the Los Angeles Housing Department (LAHD) under the HCIDLA mission banner and funded through a mix of city HOME allocations, CDBG, and local bond measures.
The program's structural design — silent deferred second — follows the same pattern as LA County HOP. The key differences are the geographic footprint (City of LA only), the higher assistance cap ($140K vs $85K), and the slower closing timeline (60-90 days vs 45-60 days).
LIPA is the default play for qualifying City of LA first-time buyers. It stacks cleanly with CalHFA MyHome and ZIP, and with either the CalHFA or LA County MCC. The resulting four-way stack — LIPA $140K + MyHome 3.5% + ZIP 3% + MCC — can put a low-income LA buyer into a $700K home with under $2,000 out of pocket plus a $2,000/year federal tax credit.
LAHD also administers MIPA (Moderate Income Purchase Assistance) for households at 80%-120% of AMI. The two programs are mutually exclusive — a borrower qualifies for either LIPA or MIPA based on income, not both.
Who it's for
City of LA first-time buyers with household income at or below 80% of LA County AMI. Target: essential workers, teachers, city employees, nonprofit staff earning $60K-$140K buying in LA City proper.
Eligibility at a glance
- First-time buyer?
- Yes
- FTB definition
- Has not owned a primary residence in the past 3 years.
- Minimum FICO
- 620
- Income limit
- Household income at or below 80% of LA County AMI. 2025 table: $84,850 (1 person) to $140,550 (6 persons). 2026 HUD chart refresh pending — verify on LAHD page.
- Homebuyer education
- 8-hour HUD-approved homebuyer education PLUS one-on-one counseling with a LAHD-approved agency.
- Minimum borrower contribution
- Minimum 1% of purchase price from borrower's own funds.
Repayment terms
Silent second mortgage — 0% interest, deferred with SHARED-APPRECIATION recapture at sale, refinance, transfer, or loss of owner-occupancy. Not a fixed-timeline forgivable loan.
Term
30 years
Interest
0% (deferred)
Due at
Sale, refinance, or end of owner-occupancy (with appreciation share)
Property rules
- Eligible property types
- Single-family residence, Condo, Townhome, PUD
- Maximum purchase price
- Capped by LAHD's max-purchase-price matrix plus program subsidy and appraisal. City of LA limits only.
- Owner-occupancy required
- 30 years
Layering & first mortgage options
Works with these first mortgages: FHA, Conventional, VA
LIPA is designed to layer with CalHFA first mortgages and MCCs. CalHFA first + MyHome + LIPA silent third is the standard LA City playbook — buyer contribution drops to 1%.
Stacks with
How to apply
Process: Reservation system — not first-come. LAHD releases batches of approximately 18-36 slots per round, several rounds per year. Known 2026 round: March 4, 2026 (18 slots). Reservation windows open and close in minutes.
Funding cycle: Active in 2026 but severely rationed — demand vastly exceeds supply. Lenders must be LAHD-approved (not every broker channel qualifies).
Typical timeline: 60-90 days from reservation to close — LIPA's review process is the slowest of the major LA DPAs.
Things that trip borrowers up
- Reservation batches — not first-come. Borrowers who submit after the round closes wait for the next batch.
- Lenders must be LAHD-approved. Verify broker channel participation before making representations.
- 60-90 day close timeline makes LIPA unsuitable for competitive bidding wars with fast-close requirements.
- City of LA geography only — Santa Monica, Culver City, WeHo, Beverly Hills, Pasadena are all separate jurisdictions.
- Shared-appreciation recapture surprises borrowers at refi — disclose early.
Frequently asked questions
- Does LIPA work in Santa Monica or Culver City?
- No. LIPA is limited to properties within the incorporated City of Los Angeles boundary. Santa Monica, Culver City, Beverly Hills, West Hollywood, and other independent cities have their own programs (or in some cases, no program). LA County HOP does not cover these cities either.
- What's the difference between LIPA and MIPA?
- LIPA is for households at or below 80% of AMI; MIPA is for households at 80%-120% of AMI. Both administered by LAHD, both use the same silent-second structure, but income limits and assistance caps differ.