Buying your first home in South LA can feel out of reach, especially when down payment and closing costs stack up fast. If you are eyeing Exposition Park, Vermont Square, or another 90062 block, you are not alone. The good news: state, city, county, and federal programs can lower upfront costs and open the door to ownership. In this guide, you will learn what “first-time buyer” really means, which programs to review, how they can boost your purchasing power in 90062, and the simple steps to get pre-approved. Let’s dive in.

What “first-time buyer” means

Most programs define a first-time buyer as someone who has not owned a primary home in the past three years. Some make exceptions for veterans, certain targeted areas, or specific household situations.

Expect income and purchase price limits based on Los Angeles County. Limits shift by program, household size, and the type of loan. Many programs also require owner-occupancy and a homebuyer education course.

Program types to explore

CalHFA at a glance

The California Housing Finance Agency (CalHFA) offers low-interest mortgages and separate down payment assistance that can be paired with those loans. You apply through approved lenders. Review current offerings, income and price caps, and lender lists on the official pages for CalHFA mortgage and assistance programs.

City and County assistance

The City and County periodically open funding rounds for down payment help, Mortgage Credit Certificates, and targeted programs that may prioritize certain occupations or areas. Availability changes through the year. Start with the City of Los Angeles housing programs and the Los Angeles County homebuyer assistance pages to learn current terms, eligibility, and application timing.

Federal loan options

Federal-backed and conventional low-down-payment loans are common for first-time buyers:

• FHA loans allow low down payments with flexible underwriting. Read the FHA basics on HUD’s site for an overview.
• VA loans offer zero-down options for eligible veterans and service members.
• USDA loans focus on rural areas and are less likely to apply in central LA.
• Conventional programs like HomeReady and Home Possible pair well with assistance. Explore the Fannie Mae HomeReady program and Freddie Mac Home Possible resources to see typical features.

Mortgage Credit Certificates (MCC)

An MCC provides a federal tax credit based on a percentage of the mortgage interest you pay, which can reduce the after-tax cost of owning and help with qualifying. Learn how they work from HUD’s Mortgage Credit Certificates overview. City and County housing departments administer MCCs when available.

Required education and counseling

Many programs require a HUD-approved homebuyer education course. You can locate local nonprofit providers using the HUD-approved housing counseling finder. Completing this early helps you move quickly when funds open.

How assistance boosts buying power in 90062

South LA neighborhoods like Exposition Park and Vermont Square can offer more approachable price points than some parts of central or west LA, though values vary block by block. Assistance programs can help you compete by:

• Reducing upfront cash needed. Down payment assistance can cover part of your down payment and sometimes some closing costs.
• Improving qualifying power. Deferred or forgivable assistance often does not add a monthly payment, which can help your ratios.
• Lowering overall costs. Some programs pair with lower interest rates or provide an MCC tax credit that lowers your after-tax cost of ownership.

Example scenario for illustration: If assistance covers 3% of a $400,000 purchase, that is $12,000 toward your down payment or closing costs. For many first-time buyers, that shift can turn a saved-up nest egg into a realistic offer.

Important notes:

• Assistance does not remove mortgage insurance where required. FHA loans include mortgage insurance; low-down conventional loans usually include MI unless otherwise structured.
• Most assistance creates a junior lien that can be due at sale or refinance. Some second loans are forgivable over time. Review terms with your lender.

Step-by-step pre-approval roadmap

1. Research and rough budget
   • List your monthly budget, savings, and target neighborhoods like Exposition Park or Vermont Square. Skim program basics to see where your income and goals fit.
2. Talk to a lender
   • Speak with a lender experienced with CalHFA and local assistance. Share your income, assets, and credit for a pre-qualification estimate.
3. Complete homebuyer education
   • If a program requires it, enroll in a HUD-approved course now so your certificate is ready when funds open.
4. Choose a participating lender and get pre-approved
   • Your lender will underwrite to program rules and issue a pre-approval letter outlining your max loan amount and loan type.
5. Reserve funds if needed
   • Some City or County programs require a reservation before or at contract. Track deadlines so you do not miss a funding round.
6. Shop and write offers
   • Use your pre-approval and any assistance reservation to strengthen your offer package.
7. Finalize loan and close
   • Your lender coordinates with program administrators. You provide final documents, sign, and get keys.

Documents to gather early

• Identification
  • Government-issued photo ID
• Income
  • Recent pay stubs, W‑2s for 2 years, federal tax returns; if self-employed, 2 years of returns and a profit and loss statement
  • Benefit award letters or other income documentation if used for qualifying
• Assets
  • Two months of bank statements and statements for any funds used for closing
  • Gift letters if receiving gift funds
• Employment
  • Employer contact info for verification
• Debts
  • Statements for auto, student loans, credit cards, and other obligations
• When under contract
  • Purchase agreement, seller disclosures, and HOA documents if applicable
• Program-specific
  • Homebuyer education certificate and any City/County or CalHFA forms

Providing documents early helps your lender reserve assistance funds on time.

Local timing, limits, and pitfalls

• Funding cycles move fast. City and County assistance can open and close within weeks or months. Have education and pre-approval ready in advance.
• Income and price caps matter. Los Angeles County limits and program rules can affect which properties qualify in 90062.
• Credit flexibility varies. FHA may allow lower scores with compensating factors, while some state or conventional options prefer higher scores.
• Second liens and resale rules apply. Understand if assistance is deferred, repayable at sale or refinance, or forgivable over time.

Start with trusted resources

Use these official pages to confirm current terms, limits, and lender lists:

• Review current CalHFA mortgage and assistance programs.
• Check the City of Los Angeles housing programs for City-administered assistance and MCCs.
• Explore the Los Angeles County homebuyer assistance pages for County offerings and announcements.
• Learn the FHA basics on HUD’s site.
• Understand how Mortgage Credit Certificates work.
• Compare conventional options through the Fannie Mae HomeReady program and Freddie Mac Home Possible resources.
• Get step-by-step consumer guidance from the CFPB homebuying guides and connect with local education via the HUD-approved housing counseling finder.

Buying in South LA is as much about neighborhood fit as it is about financing. If you want local guidance on 90062 streets, smart offer strategy, and introductions to lenders who work with assistance programs, reach out to the Nelson Brother Team. We live and work in these neighborhoods and are ready to help you write a confident first offer.

FAQs

What counts as a first-time buyer in Los Angeles?

• Most programs define it as not owning a primary home in the last three years, with possible exceptions for veterans or targeted areas.

Which programs help with down payments in 90062?

• CalHFA, City of Los Angeles, and Los Angeles County programs may offer down payment assistance, each with income and price limits and funding cycles.

Do I need a homebuyer education course for assistance?

• Many programs require a HUD-approved course and a completion certificate before funds are reserved or issued.

Can I combine CalHFA with federal loans or MCCs?

• Many buyers pair a CalHFA mortgage with down payment assistance and may add a Mortgage Credit Certificate when a local agency offers it.

Does using assistance remove mortgage insurance on FHA or conventional loans?

• No. FHA requires mortgage insurance, and low-down conventional loans typically include MI; assistance affects cash to close and qualifying, not MI rules.

How fast do City or County funding rounds fill up?

• They can fill quickly, sometimes within weeks, so having pre-approval and your education certificate ready helps you secure a reservation on time.