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-area AMI.
Eligibility at a glance
- First-time buyer?
- Yes
- FTB definition
- Has not owned a primary residence in the past 3 years.
- Minimum FICO
- 640
- Income limit
- Household income at or below 80% of LA-area AMI. Current 2026 limit for a family of 4 is approximately $114,000 — verify current chart at LAHD.
- Homebuyer education
- Required — LAHD-approved homebuyer education course.
- Minimum borrower contribution
- Minimum 1% of purchase price from borrower's own funds.
Repayment terms
Silent second mortgage — deferred, no payment, no interest during term. Due at sale, refinance, transfer, or end of owner-occupancy.
Term
30 years
Interest
0% (deferred)
Due at
Sale, refinance, or end of owner-occupancy
Property rules
- Eligible property types
- Single-family residence, Condo, Townhome
- Maximum purchase price
- Purchase price must not exceed LAHD's annual sales-price limit — typically $820K-$950K for SFR in City of LA.
- Owner-occupancy required
- 30 years
Layering & first mortgage options
Works with these first mortgages: FHA, Conventional, VA
LIPA is designed to layer with a first mortgage of borrower's choice. It stacks with CalHFA MyHome and ZIP for maximum effect.
Stacks with
How to apply
Process: Borrower applies through LAHD with support from a participating lender. LAHD reviews the full file before loan approval.
Funding cycle: Annual NOFA (Notice of Funding Availability) — fund cycles tied to city fiscal year. Check LAHD for current status.
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
- LIPA closing timeline is long — 60-90 days. Not suitable for competitive bidding wars where sellers need quick close.
- City of LA sales-price limits are tighter than LA County HOP — many Westside / Hollywood / mid-city properties exceed the cap.
- LIPA cannot be used alongside MIPA (they're the same program at different income tiers).
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.