1. real estate
2. buying and selling homes

CITY OF LOS ANGELES HOUSING AND
COMMUNITY INVESTMENT DEPARTMENT (HCIDLA)
LOW INCOME PURCHASE ASSISTANCE (LIPA) PROGRAM
The City of Los Angeles Housing and Community Investment Department (HCIDLA) offers purchase assistance
financing to eligible first-time, low income homebuyers seeking to purchase a home in the City of Los Angeles.
HCIDLA provides assistance in the form of a deferred loan for purchase assistance which includes down payment,
closing costs and acquisition financing.
HCIDLA LOAN LIMITS
 Up to $60,000 for purchase assistance, down payment and closing costs (loan funds may be also used to
cover closing costs up to 5% of the purchase price).
PROGRAM REQUIREMENTS
 Applicant must be a first-time homebuyer, defined as someone who has not had an ownership interest in any
real property at any time during the last three (3) years.
 Applicants must have a middle FICO credit score of at least 620.
 Applicants must attend an 8-hour Homebuyer Education Class provided by one of HCIDLA’s Approved
Homebuyer Education Providers (see Approved List).
 Applicants must occupy the property as their primary residence.
 Total household income of all adults 18 years of age or older who will be living in the home must be at or
below the limits shown on the table below.
 Borrower must be a U.S. Citizen, lawful permanent resident alien, or other qualified alien.
 If eligible, Applicants who apply for the LIPA Program will also be required to apply for a Mortgage Credit
Certificate (MCC).
LIPA Rev: 6.1.15
2
2015 MAXIMUM INCOME LIMITS
Household
Size
Annual
Household
Income
1 person
$46,500
or less
2 people
$53,150
or less
3 people
$59,800
or less
4 people
$66,400
or less
5 people
$71,750
or less
6 people
$77,050
or less
7 people
$82,350
or less
8 people
$87,650
or less
(For larger household size limits, please contact HCIDLA)
MAXIMUM VALUE / PURCHASE PRICE LIMIT:
Single Family Residences:
$456,000
Condominiums:
$380,000
HCIDLA LOAN TERMS




Deferred, requiring no monthly payments.
Shared Appreciation applies to the HCIDLA purchase assistance loan.
Loan is due on sale, title transfer, first mortgage repayment, or in 30 years.
Refinancing of first mortgage is allowed by HCIDLA under certain conditions.
DOWNPAYMENT REQUIREMENT
 A minimum of one percent (1%) of the property purchase price is required as down payment. The one percent (1%)
must come from the Borrower’s own funds. Please be aware that the Borrower may be required to contribute more
than 1% of their own funds towards the down payment to complete the purchase.
ELIGIBLE PROPERTIES




Property must be located in the City of Los Angeles.
Regular Sales, Foreclosed and REO Properties and Approved short sales/pays.
One unit, single family residences including town homes and condos.
Property cannot be occupied by tenants.
 All properties applying under the LIPA program will be inspected by HCIDLA to ensure the property meets all
applicable State and local housing quality standards and code requirements. Additionally, HCIDLA will
perform a Lead Based Paint Visual Assessment on the property to identify deteriorated paint in the homes.
HCIDLA does not charge a fee for the property inspection. All properties must pass the HCIDLA inspection
to be feasible. Any items identifying by HCIDLA that are required to be corrected or repaired on the property
will need to be done either at the cost of the owner or the homebuyer and must be completed before the
HCIDLA application is submitted to HCIDLA.
LIPA Rev: 6.1.15
3
HOW DOES THIS PROGRAM WORK?
HCIDLA provides purchase assistance up to a maximum of $60,000. HCIDLA’s loan provides the difference between the
purchase price plus closing costs (up to 5% of sales price) and the amount of the buyer's first mortgage loan, down payment
and other funding sources. In addition to the Purchase Assistance Loan, HCIDLA will lend the Buyer funds for lead-based paint
stabilization (if needed).
Example:
Purchase Price of Home:
Buyer's Closing Costs:
TOTAL FUNDS NEEDED:
$295,000
$ 9,000
$304,000
Funds Available:
First Mortgage Amount (for which buyer qualifies):
Homebuyer Down Payment (1% of purchase price)
HCIDLA Purchase Assistance Loan
TOTAL FUNDS AVAILABLE:
$241,050
$ 2,950
$ 60,000
$304,000
Total HCIDLA loan in the above example is $60,000.
HOW DO I START?
Contact one of HCIDLA’s Participating Lenders listed at the end of this publication to get pre-qualified for a first mortgage and
HCIDLA loan.
As a covered entity under Title II of the Americans with Disabilities Act, the City of Los Angeles does not
discriminate on the basis of disability and, upon request, will provide reasonable accommodation to
ensure equal access to its programs, services and activities.
LIPA Rev: 6.1.15
4