Program details in this article are as of October 1, 2026, and are subject to change. Assistance programs open, close, and change their limits regularly, so always confirm current terms with the program administrator before making plans around them.
For a lot of first-time buyers in Los Angeles, the down payment is the biggest hurdle — not the monthly payment. That's where down payment assistance (DPA) programs come in. California has statewide programs through the California Housing Finance Agency (CalHFA), and some cities and counties run their own.
Here's a plain-language overview of the main options, how they generally work, and what to know before you count on one.
First, how most assistance actually works
Most down payment assistance isn't a grant. It's usually a second loan (sometimes called a "silent second" or "junior loan") that sits behind your main mortgage. Common features include:
- Deferred payments — no monthly payment on the assistance loan, with repayment due when you sell, refinance, or pay off the first mortgage.
- Shared appreciation — some programs ask you to repay the original amount plus a share of your home's increase in value.
- Eligibility rules — income limits, purchase price limits, first-time buyer requirements, and a homebuyer education course are common.
Understanding how and when the assistance gets repaid is just as important as how much you can receive.
CalHFA MyHome Assistance
MyHome is CalHFA's main statewide down payment and closing cost program. According to CalHFA, it's a deferred-payment junior loan of up to 3.5% of the purchase price or appraised value with a CalHFA FHA first mortgage, or up to 3% with a CalHFA conventional first mortgage.
- Paired with a CalHFA first mortgage
- Borrowers must be first-time homebuyers and live in the home as their primary residence
- CalHFA income limits apply and vary by county
- Homebuyer education is required for at least one occupying first-time borrower
California Dream For All
Dream For All is a shared appreciation program for first-generation homebuyers. CalHFA describes it as assistance of up to 20% of the purchase price for down payment or closing costs, capped at $150,000. When the home is sold or the loan is paid off, the borrower repays the original amount plus a share of the appreciation.
It runs in funding rounds rather than year-round. CalHFA's site shows the most recent application period closed on March 16, 2026. If you're interested, watch for announcements of future rounds — and have your pre-approval work started so you're ready if one opens.
"First-generation" generally means at least one borrower's parents never owned a home. Check CalHFA's current definition, since the exact eligibility rules matter.
CalPLUS and other CalHFA first mortgages
CalHFA also offers FHA, VA, USDA, and conventional first mortgages, plus "CalPLUS" versions that come with built-in closing cost help in exchange for a somewhat higher rate. That tradeoff is worth comparing directly against a standard loan with your own funds for closing costs.
City of Los Angeles: LIPA and MIPA
If you're buying within the City of Los Angeles city limits — which includes many San Fernando Valley neighborhoods like Woodland Hills, Canoga Park, Reseda, and Van Nuys, but not separate cities like Calabasas, Burbank, or Glendale — the Los Angeles Housing Department (LAHD) runs its own assistance.
- LIPA (Low Income Purchase Assistance) — LAHD describes it as a 0% interest, deferred-payment loan of up to $161,000 with a shared appreciation feature, for households at or below 80% of Area Median Income. LAHD lists additional requirements, including a minimum credit score, a minimum 1% down payment from your own funds, an 8-hour homebuyer education class, and a maximum purchase price.
- MIPA (Moderate Income Purchase Assistance) — a separate program for moderate-income households. Check LAHD for current terms.
LAHD uses a reservation system with limited slots per round, so timing matters. Full, current eligibility rules are on the LAHD homebuyer page.
What to check before you count on a program
- Is it currently funded and accepting applications? Many programs pause when funds run out.
- Do you fit the income and price limits? These are set by household size and location.
- Does the property qualify? Location (city vs. county), property type, and price all matter.
- How is it repaid? Know whether it's deferred, forgivable, or shared appreciation.
- Can it be combined with other programs? Some allow layering; others don't.
- Does the lender participate? Not every lender offers every program. Ask early.
Assistance programs can add steps and time to a purchase, so it helps to tell your agent and loan officer early that you're planning to use one.
Programs aren't the only path
Even if you don't qualify for assistance, low-down-payment options exist. FHA loans allow a lower minimum down payment for qualified borrowers, some conventional programs do too, and VA loans may offer no-down-payment options for eligible veterans and service members. Our FHA vs. VA vs. Conventional guide breaks those down.
Frequently asked questions
Do I have to be a first-time buyer to get down payment assistance in California?
Most programs require it, but the definition varies. Many define a first-time buyer as someone who hasn't owned a home in the past three years. Check each program's definition.
Is down payment assistance free money?
Usually not. Most California assistance is a deferred second loan that's repaid when you sell, refinance, or pay off the first mortgage. Some programs also include shared appreciation. Read the repayment terms carefully.
Is Woodland Hills in the City of Los Angeles for LIPA purposes?
Woodland Hills is a neighborhood within the City of Los Angeles. Eligibility depends on the specific property address and all other program rules, so confirm with LAHD before you plan around it.
Do I need to take a homebuyer education class?
Most assistance programs require it. CalHFA accepts an approved online course or counseling through approved agencies, and LAHD requires an 8-hour class for LIPA. It's worth taking early either way.