Orlando Garcia, REALTOR®  |  The GO Team Real Estate Services  |  HomeSmart Realty Group

LACDA Down Payment Assistance — LA County's Program Explained

Last updated: June 2026

LACDA — the Los Angeles County Development Authority — runs one of the more generous down payment assistance programs in the region. Depending on your income, you could be eligible for up to $100,000 toward your down payment. Here's how it actually works.

The Two Program Tiers

LACDA runs two tiers based on your income relative to the Area Median Income (AMI) for LA County. Your tier determines how much assistance you can receive.

What "Shared Equity" Means

LACDA's assistance is structured as a shared equity loan. This is different from a straight deferred loan, and it's the most important thing to understand about this program before you commit to it.

When you eventually sell the home, LACDA gets back not just the original loan amount — they also get a proportional share of any appreciation in the home's value.

Here's a concrete example: Say LACDA provided $85,000 toward your $500,000 purchase. That's 17% of the purchase price. When you sell the home years later for $700,000, LACDA doesn't just get back $85,000. They get back 17% of $700,000 — which is $119,000.

This is important to understand before you commit. The shared equity structure is the tradeoff for getting 0% interest and deferred payments. You're giving LACDA a share of the future appreciation on the portion they funded.

Who Qualifies

First-time buyer: No homeownership in the last three years. Same rule as most other programs — the three-year lookback applies, not a lifetime restriction.

Income: Household income at or below the program limit for your tier. Approximately $159,900 per year for a family of four at the HOP100 level. Lower income thresholds apply at HOP80. Exact figures are updated periodically — check with me or LACDA for current limits.

Property location: The home must be in LA County — either in unincorporated LA County or a participating city. Downey is in LA County, so most properties in the area qualify. A few cities opt out of the program — verify the specific address you're buying.

Primary residence: Must be your main home. You must intend to occupy the property, not rent it out.

How to Apply

LACDA has its own application process, separate from CalHFA. It runs through approved lenders and housing counseling agencies — not directly through LACDA themselves.

1. Complete a homebuyer education course from a HUD-approved agency (required before applying)
2. Work with a lender who is familiar with LACDA assistance — this is not universal; you need to ask specifically whether your lender has worked with LACDA
3. Submit your application to LACDA for an eligibility determination
4. Receive a commitment letter from LACDA confirming your assistance amount
5. Find a home and coordinate the closing with LACDA's timeline and requirements

The Timeline Reality

LACDA assistance takes longer to process than a standard mortgage. Budget additional time — often 45 to 60 days from application to close, and sometimes longer depending on LACDA's current volume and your individual situation.

This has real practical implications for your offer strategy. When you make an offer on a home, your closing timeline needs to account for LACDA's processing time. Sellers who want a fast close (21 to 30 days) may be less receptive to an offer contingent on LACDA approval.

The fix is to get as much of the LACDA process done before you're in contract as possible. Start early, get pre-qualified through LACDA, and have your commitment letter ready before you make offers. This compresses the post-contract timeline significantly.

Work with a lender and agent who know how to coordinate this timeline so you're not making offers you can't deliver on. I've navigated LACDA transactions and know how to set realistic expectations with sellers while still putting together a competitive offer.

LACDA vs CalHFA — Which One?

You might qualify for both. The choice isn't always either/or. See the comparison guide and stacking guide for how to think about using them together.

If forced to choose, the key difference comes down to this: LACDA can provide more cash, but with a shared equity component. CalHFA is a smaller percentage-based amount, but you keep all the appreciation when you sell.

For buyers who need the maximum dollar amount and plan to stay in the home long-term, LACDA is often the better tool. For buyers who want simplicity and a clean exit when they sell, CalHFA is often the right call.