First-Time Condo Buyer's Guide to Los Angeles

1. Why Buy a Condo in LA?

Los Angeles is one of America's most expensive housing markets, with median single-family home prices exceeding $900,000 in many neighborhoods. Condos offer a more accessible entry point to homeownership, often at 40-60% of single-family home prices in the same area.

Beyond affordability, condos offer distinct advantages:

Location access: Live in desirable neighborhoods (Santa Monica, Beverly Hills, beach cities) that would be unaffordable for single-family homes
Low maintenance: No landscaping, roof repairs, or exterior maintenance—the HOA handles it
Amenities: Pools, gyms, rooftop decks, and concierge services that would cost a fortune to maintain privately
Security: Gated access, doormen, and security systems in many buildings
Lock-and-leave lifestyle: Perfect for travelers or busy professionals

Market Reality Check

In 2024, the median LA condo price was approximately $650,000, compared to $950,000+ for single-family homes. In premium areas like Santa Monica and Manhattan Beach, condos start around $700K while houses exceed $2M.

2. Financial Preparation

Get Pre-Approved First

Before touring condos, get pre-approved (not just pre-qualified) for a mortgage. Pre-approval involves a lender reviewing your income, assets, and credit to issue a conditional commitment. In LA's competitive market, sellers won't take offers seriously without pre-approval.

Down Payment Options

Loan Type	Min. Down	Notes
Conventional	3-20%	PMI required under 20%; best rates at 20%+
FHA	3.5%	Building must be FHA-approved; MIP required
VA	0%	Veterans only; building must be VA-approved
Jumbo	10-20%	For loans exceeding $766,550 (2024 LA limit)

Budget Beyond the Purchase Price

Your monthly housing costs include more than the mortgage:

Mortgage (principal + interest): ~$4,200/month on $700K with 10% down at 7%
Property taxes: ~1.25% of purchase price annually (~$730/month)
HOA fees: $300-$800+/month typical
Homeowners insurance: ~$50-150/month (condo policies are cheaper than single-family)
PMI (if under 20% down): ~$100-300/month

Pro Tip

Lenders typically approve you for more than you should spend. Target total housing costs (mortgage + HOA + taxes + insurance) under 30% of your gross monthly income for financial comfort.

3. Understanding HOA Fees & CC&Rs

HOA (Homeowners Association) fees are mandatory monthly payments that cover shared expenses. Understanding what you're paying for—and reviewing the HOA's financial health—is crucial.

What HOA Fees Cover

Building insurance (exterior and common areas)
Water, trash, and sometimes gas
Landscaping and exterior maintenance
Amenities (pool, gym, common rooms)
Reserve fund for major repairs
Management company fees
Security (if applicable)

Red Flags in HOA Documents

During escrow, you'll receive HOA documents to review. Watch for:

Underfunded reserves: Should be at least 70% funded; low reserves mean future special assessments
Pending litigation: Lawsuits against the HOA or builder can affect financing and resale
History of special assessments: Frequent "surprise" fees indicate poor financial planning
High delinquency rates: Many owners not paying HOA fees is a red flag
Rental restrictions: If you might rent later, check rental caps and rules

CC&Rs: The Rules

CC&Rs (Covenants, Conditions & Restrictions) are the rules you agree to follow. Common restrictions include:

Pet policies (size limits, breed restrictions, number limits)
Rental restrictions (minimum lease terms, rental caps)
Renovation approval requirements
Noise and nuisance policies
Parking rules
Airbnb/short-term rental prohibitions (common in LA)

4. Choosing the Right Neighborhood

LA is a collection of distinct neighborhoods, each with its own character, price point, and lifestyle. Here's a quick guide to popular condo areas:

Beach Cities

Santa Monica, Venice, Manhattan Beach, Hermosa Beach, Redondo Beach

Price range: $600K-$2M+

Best for: Beach lifestyle, outdoor enthusiasts, those who prioritize location

Westside

Beverly Hills, Culver City, Playa Vista, Marina del Rey

Price range: $500K-$4M+

Best for: Entertainment industry, tech workers, luxury seekers

South Bay (Inland)

Torrance, El Segundo, Palos Verdes

Price range: $400K-$1.2M

Best for: Value seekers, families, aerospace workers

Urban Core

Downtown LA, Glendale, Burbank

Price range: $400K-$1.5M

Best for: Urban lifestyle, entertainment industry, transit-oriented living

Questions to Ask Yourself

What's my commute tolerance? (LA traffic is real)
Do I need parking for 1 or 2 cars?
Is walkability important to me?
Do I want beach access?
Am I planning to have kids? (Consider school districts)
Will I rent this out eventually? (Check HOA rules)

Explore all 35 LA communities we serve →

5. The Condo Buying Process

Here's what to expect from start to finish:

Get Pre-Approved (1-2 weeks)

Submit financials to a lender and receive a pre-approval letter stating how much you can borrow.

Find an Agent & Search (2-8 weeks)

Work with a buyer's agent (free to you—sellers pay commission) to tour properties and understand the market.

Make an Offer (1-2 weeks)

Submit a written offer with your agent. In competitive markets, you may need to make multiple offers before one is accepted.

Enter Escrow (30-45 days)

Once accepted, you'll deposit earnest money and begin due diligence: inspections, HOA review, appraisal, and final loan approval.

Close & Get Keys

Sign final documents, wire your down payment and closing costs, and receive the keys to your new condo.

6. Inspections & Due Diligence

Even though you're buying a unit (not a whole building), inspections matter:

What to Inspect

Unit inspection ($350-500): HVAC, plumbing, electrical, appliances, windows, water heater
Termite/pest inspection: Especially important in older buildings
Common areas: Walk the building, check parking, inspect amenities

HOA Document Review (Critical!)

You'll receive a package including:

CC&Rs and bylaws
Current budget and financial statements
Reserve study (shows funding for future repairs)
Meeting minutes (last 12 months)
Insurance certificate
Any pending litigation or special assessments

Don't Skip This

HOA document review is where many condo purchases go wrong. A building with a $50,000 special assessment pending or major deferred maintenance can cost you far more than a slightly higher purchase price elsewhere.

7. Common First-Time Buyer Mistakes

Ignoring HOA Finances

Low HOA fees aren't always good—they may mean underfunded reserves and future special assessments.

Not Budgeting for All Costs

Remember: closing costs (2-3% of price), moving, furniture, and that HOA fee every month.

Buying in an FHA-Ineligible Building

If you have an FHA loan, the building must be FHA-approved. This also limits your future buyer pool when selling.

Skipping the Test Commute

That 20-minute drive on Sunday is 60+ minutes on Monday morning. Always test your commute during rush hour.

Falling in Love Too Fast

Emotional decisions lead to overpaying or overlooking red flags. Trust your agent's guidance on comparable sales and building quality.

Not Checking Rental Rules

If you might rent the unit later, verify HOA rental policies before buying. Many buildings limit rentals or require owner-occupancy periods.

8. Frequently Asked Questions

How much do I need for a down payment on an LA condo?

Conventional loans typically require 3-20% down. FHA loans allow as low as 3.5% down for qualifying buyers and buildings. For a $700,000 condo, that ranges from $21,000 (FHA) to $140,000 (20% conventional). Many LA buyers put 10-15% down to balance monthly payments with cash reserves.

What credit score do I need to buy a condo in Los Angeles?

Most lenders require a minimum 620 credit score for conventional loans, though 740+ gets you the best rates. FHA loans may accept scores as low as 580 with 3.5% down. Given LA's competitive market, stronger credit scores (700+) give you more options and better terms.

How much are HOA fees in Los Angeles condos?

LA condo HOA fees typically range from $300-$800/month for standard buildings, and $800-$1,500+ for luxury high-rises with extensive amenities. Fees cover insurance, maintenance, amenities, and reserves. Always review what's included—some fees cover utilities, which offsets the cost.

Are condos a good investment in Los Angeles?

LA condos have historically appreciated well due to limited land, strict zoning, and strong demand. However, appreciation varies by neighborhood—beach cities and Westside typically outperform. Condos also offer rental potential if you relocate. Consider your timeline: 5+ years generally allows you to build equity despite transaction costs.

What's the difference between a condo and a townhouse?

Condos typically share walls and common areas with unit boundaries defined by interior walls. Townhouses usually include the land beneath and may have private yards. Both have HOAs, but townhouse owners often have more exterior maintenance responsibility. In LA, the terms sometimes overlap—always check the CC&Rs.

How long does it take to buy a condo in LA?

From starting your search to closing, expect 2-4 months. The process: get pre-approved (1-2 weeks), search and tour (2-8 weeks), offer and negotiation (1-2 weeks), escrow period (30-45 days). Hot markets may require multiple offers before one is accepted.