Los Angeles County LIPA

Commonly known as LIPA, the Low-Income Purchase Assistance Program is presented by the City of Los Angeles Housing and Community Investment Department. LIPA is a solid down payment assistance program for lower income residents throughout Los Angeles County. Furthermore, for residents living in the heart of the city of Los Angeles, this program could be the conduit needed to make their dreams of purchasing a home come true.

It’s considered another form of a “silent” second mortgage and provides up to $60,000 in down payment assistance, gap and closing costs, while home-buyers only need to provide just 1% of the sales price of the home. 

Utilized with a conventional or FHA first mortgage, another highly beneficial element to this program is that is does not require a monthly payment for 30 years.

Among the initial eligibility requirements for this program is that the applicant possess a minimum FICO score or 620 and cannot have owned a home within the previous three years. The potential home must be within the city of Los Angeles, thus confirmation the property does not belong to an unincorporated area is insisted. 

The potential home-buyer’s income must be in the low-income range ($54,650 for a two-person household), plus all qualifications regarding a conventional or FHA first mortgage must be met. Minimum debt-to-income for the borrower is 38%, while maximum is 42%. 

Single family homes, one-unit residences along with condos, planned unit developments and townhomes are eligible properties. Also, the unit cannot be occupied by tenants. 

Users of this option need not worry about the condition of the selections of their potential housing, as a requirement of this program is that the home bought is deemed to be in top-quality shape. 
The Housing and Community Investment Department in Los Angeles will perform property inspections to make sure all local and state standards and codes are met. Another component to this down payment assistance program is HCIDLA will also conduct a lead based paint inspection to determine if the home has any deteriorated paint. 

Any repairs deemed necessary by HCIDLA will come at the cost of the property’s owner or the home-buyer.

Contact Golden Empire Mortgage and let us help you in your exploration of the LIPA down payment assistance program at (909) 457-0257.