United to House Los Angeles Incentives for First Time Home Owners
$161,000
About the Program
Thinking about buying your first home? The City of Los Angeles Housing Department (LAHD) offers three programs, the Low Income Purchase Assistance (LIPA) , the Moderate Income Purchase Assistance (MIPA) and Mortgage Credit Certificate (MCC), that can help you achieve your dream of homeownership.
The LIPA and MIPA programs help first-time, low-income and moderate-income homebuyers purchase homes in the City of Los Angeles by providing loans to cover the down payment, closing and acquisition cost. The MCC program provides a dollar-for-dollar reduction to the homebuyer’s potential federal income tax liability. This increases the household income available to qualify for a home mortgage.
I. Low income Purchase Assistance (LIPA)
The Program offers a purchase assistance program for first-time, low income homebuyers by providing loans to cover the down payment, acquisition and closing cost
Loan Amount
Up to $161,000 for down payment, closing costs, and acquisition.
Loan terms
- Zero Percent (0%) Interest
- Deferred, requiring no monthly payments
- Loans have a Shared Appreciation provision in which the City will share a certain percentage of the appreciation in the value of the property. For an example of Shared Appreciation, click here
- Loan and Shared Appreciation is due on sale, title transfer, first mortgage repayment, or in 30 years as balloon payment
- Refinancing of first mortgage is allowed under certain conditions
Property Eligibility
- Properties must be located in the City of Los Angeles
- One unit properties, i.e. single family residences including townhomes and condominiums
- Regular sales, approved short sales/pays, and foreclosed and REO properties
- Properties cannot be tenant-occupied, unless the tenant is the prospective homebuyer
- Homebuyers are required to purchase their own consumer home property inspection report.
- Maximum Purchase Price Limit: $930,622
II. Moderate Income Purchase Assistance (MIPA)
The Program offers a purchase assistance program for first-time, moderate income homebuyers by providing loans to cover the down payment, acquisition and closing cost
The City of Los Angeles Housing Department (LAHD) can help you achieve the dream of homeownership. The Moderate Income Purchase Assistance (MIPA) Program helps first-time, moderate-income homebuyers purchase homes in the City of Los Angeles by providing subordinate loans to cover the down payment, closing costs, and acquisition. Please see below for more information:
Who’s eligible
- First-time homebuyers who have not had an ownership interest in any real property at any time during the last three years.
- U.S. Citizens, lawful permanent residents, or other qualified aliens.
- Homebuyers must have a middle FICO credit score of at least 660.
- Applicants must attend an 8-hour, Homebuyer Education Class and receive housing counseling given by one of LAHD’s approved providers.
- Applicants must contribute a minimum of 1% of the home price as down payment. The down payment must come from the Applicant’s own. Some homebuyers may be required to contribute more than 1% toward the down payment to complete the purchase.
- Homebuyers must occupy the home as their principal residence.
- If eligible and program funds are available, applicants who apply for this program may also be required to apply for the Mortgage Credit Certificate Program (MCC).
- The total household income for all adults 18 years of age or older must fall within the maximum income limits, adjusted according to household size, as shown in the table below:
For the low-income limits, please refer to the Low Income Purchase Assistance (LIPA) Program
Loan Amount
Up to $115,000 for down payment, closing costs, and acquisition.
Loan terms
- Zero Percent (0%) Interest
- Deferred, requiring no monthly payments
- Loans have a Shared Appreciation provision in which the City will share a certain percentage of the appreciation in the value of the property. For an example of Shared Appreciation, click here
- Loan and Shared Appreciation is due on sale, title transfer, first mortgage repayment, or in 30 years as balloon payment
- Refinancing of first mortgage is allowed under certain conditions
III. Mortgage Credit Certificate (MCC)
A Mortgage Credit Certificate provides eligible, first-time homebuyers with a federal income tax credit based on 20% of the annual interest paid on a mortgage. View
What is a Mortgage Credit Certificate (MCC)?
A Mortgage Credit Certificate provides eligible, first-time homebuyers with a federal income tax credit based on 20% of the annual interest paid on a mortgage. The tax credit is a dollar-for-dollar reduction to the homebuyer’s potential federal income tax liability that increases the household income available to qualify for a home mortgage and to make monthly mortgage payments.
With an MCC you can:
- Receive a dollar-for-dollar tax credit which reduces your potential federal income tax liability
- Save money and increase the amount of your disposable income available to purchase a home
- More easily qualify for a higher first mortgage
- Take advantage of the tax credit every year for the life of the original first mortgage
- Reapply for a Reissued Mortgage Credit Certificate (RMCC) when you refinance your mortgage
Program Requirements
- Be a first-time homebuyer which is defined as someone who has not had an ownership interest in a principal residence at any time during the past 3 years. (EXCEPTION: This requirement does not apply to someone purchasing a home in a targeted area.)
- Occupy the home as your principal residence
- Applicants must be within the income limits below (there are target and non-target areas)
- Purchase an eligible home in the City of Los Angeles
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