Common Mortgage Options in Los Angeles
Conventional loan
- "Traditional" mortgage, usually 15- or 30-year terms
- Often requires a 10% – 20% down payment
- Usually requires high credit score, good financial history & solid income
VA loan
- Available to most active & veteran military
- As little as 0% down, no private mortgage insurance required
- May require a one-time funding fee
FHA loan
- Flexible income and credit requirements
- As low as 3% – 5% down payment
- Requires private mortgage insurance
USDA rural loan
- Only available to buyers in more rural areas
- As little as 0% down payment
- Targets lower-income buyers
Balloon mortgage
- Has a short loan term of 5 – 7 years but a payment based on 30 years
- At the end of the 5 or 7 years, you must pay, refinance, or convert the loan
- May have lower interest rates and credit requirements
Jumbo loan
- Used to finance properties too expensive for a conforming loan (as defined by the Federal Housing Finance Agency)
- Riskier for lenders, as the loan isn't guaranteed by Fannie Mae and Freddie Mac
- May have higher qualification requirements, including credit, income, and savings
CalHFA loans
- Offer options for first-time buyers
- May provide lower credit requirements or down payment assistance
- May have income limits or require mortgage insurance or a buyer education course
LACDA First Home Mortgage Program
- Available to first-time buyers in LA County EXCEPT the city of Los Angeles
- Offers competitive interest rates and down payment and closing cost assistance
- Has income and purchase price limits
City of LA homebuyer assistance
- Offers loans for low income and moderate income buyers
- Offers up to $90,000 that can be used to cover a down payment and closing costs
- No maximum purchase price on moderate income loans
Find Out How Much You'll Be Paying
Buying a home in LA County? Find out what you can expect to pay for your mortgage.
