Buying a home in Los Angeles: loan limits, Measure ULA and LAHD help

#Los Angeles prices against California and the US

The median Los Angeles home is worth $947,900, the third-highest among the 20 large cities we cover, and the ratio of value to income is the highest. Renters outnumber owners in Los Angeles: 35.9% of occupied homes are owner-occupied, compared with 55.8% across California.

The tax ratio is below the national 0.89%, yet because values are so high the median bill is higher than the US median. Figures cover the City of Los Angeles only, not the other cities of Los Angeles County.

#Conforming or jumbo in Los Angeles County?

Fannie Mae and Freddie Mac buy loans up to a county limit set each year by FHFA. The 2026 baseline is $832,750, but Los Angeles County is a high-cost area with a one-unit limit of $1,249,125.

A 10% down payment on the median home leaves a $853,110 loan — above the national baseline but within the Los Angeles County limit, so it can still be a conforming “high-balance” loan rather than a jumbo. With 10% down you could buy up to about $1,388,000 before the loan crosses the county limit. Above it, you need a jumbo loan, which usually means stricter reserve and down-payment rules set by each lender.

#A month in a median-priced LA home

On the city’s median household income of $82,263, Freddie Mac’s 30% guideline gives a housing budget of $2,057 a month, which supports about $273,000 at today’s rate with 10% down — $674,900 short of the median. Paying for the median home within that guideline takes an income near $286,000. Try other prices in the payment calculator.

#The City of Los Angeles transfer tax and Measure ULA

California has no state transfer tax, but counties and cities can levy one. Inside the City of Los Angeles, the Office of Finance collects a base tax of 0.45% — $4,266 on the median-priced home — on top of the county’s own documentary transfer tax.

Measure ULA adds a second layer on expensive sales: 4% on top of the base tax for sales above $5,400,000, and 5.5% at $10,900,000 or more. The rate applies to the whole price, not just the part above the threshold, so a sale just over the first line owes about $216,000 more than one just under it. The thresholds are 5.7 times the median value and are adjusted each July for inflation, so they touch only the top of the market. Who pays the tax is a matter for the purchase contract; see closing costs for the rest of the bill.

#LIPA and MIPA: LAHD purchase assistance

The Los Angeles Housing Department lends first-time buyers (no ownership interest in the past 3 years) money for the down payment, closing costs and acquisition:

You need at least 1% of the price as your own down payment and an 8-hour homebuyer education course. The citywide median value sits just under the price cap. LAHD says it uses a modified loan reservation process because resources are limited, so ask a participating lender about current availability before you make an offer.

#Wildfire, earthquakes and the FAIR Plan

Lenders require hazard insurance, and in fire-prone hillside and canyon areas a standard policy can be hard to find. The California Department of Insurance describes the California FAIR Plan as the insurer of last resort, to use only after searching the regular market. It covers fire, lightning, internal explosion and smoke, but not theft or liability, so FAIR Plan owners can add a difference-in-conditions policy to fill the gaps. Standard homeowners policies generally exclude earthquake damage; quake coverage is sold separately. Get quotes during escrow, not after.

Compare the numbers with San Diego or Seattle, and see the California guide for CalHFA programs. The rent vs buy calculator starts from the city’s median rent of $1,958/mo.