Buying your first home in Palisades Highlands can feel like a big leap, especially when you see headlines about high Westside prices. You want a quiet hillside neighborhood, access to parks and trails, and a home that fits your budget without sacrificing peace of mind. This guide shows you exactly how to plan your budget, compare loan options, build a competitive offer, and move from search to keys in hand. Let’s dive in.
Why Palisades Highlands works for first-time buyers
Palisades Highlands sits in the northern hills of Pacific Palisades along the edge of Topanga State Park, with a network of established enclaves and the community’s Summit Club for recreation. The neighborhood was built largely in the 1970s and offers a distinct, hillside lifestyle with trails and canyon views. If you are new to the area, this neighborhood primer helps set the stage: Palisades Highlands overview.
Here is the key market nuance as of early 2026: the broader 90272 zip code posts a median sale price above three million dollars, which reflects some of the most expensive parts of Pacific Palisades. Palisades Highlands, however, is often more attainable within the zip. Recent neighborhood data shows a median list price around the high one‑million range, with a mix of single‑family homes, townhomes, and even buildable lots.
You will also see a varied inventory profile after the January 2025 wildfires. Some owners chose to sell lots or storm‑damaged properties rather than rebuild, so today’s options can include move‑in ready homes, renovation candidates, and lots that may suit a long‑term plan. Many enclaves include HOA and Summit Club fees, so factor those monthly costs early.
What homes cost in 90272 today
As a first-time buyer in the Highlands, expect asking prices to cluster from roughly the mid‑hundreds of thousands at the very low end for smaller attached options to the low three millions for larger single‑family homes, depending on condition, lot, and enclave. Two practical buckets to keep in mind:
- Entry tier: townhomes or smaller houses near about 1.0 to 1.2 million dollars.
- Move‑up or lot: single‑family homes or buildable parcels around 1.9 million dollars and above.
These ranges frame your loan choices and cash-to-close planning.
Loan limits that shape your plan
Understanding loan limits will help you choose the right financing lane in Los Angeles County. For 2026, the baseline conforming limit is 832,750 dollars, and the high‑cost ceiling for one‑unit loans in Los Angeles County is 1,249,125 dollars. Loans above the high‑cost ceiling are considered jumbo and follow different underwriting rules. You can confirm current limits here: FHFA 2026 loan limits.
What this means for you:
- Many entry‑tier Highlands purchases can use high‑balance conforming financing if your loan amount stays at or below 1,249,125 dollars.
- Many single‑family homes above roughly 1.3 million dollars purchase price will fall into jumbo territory unless you put down a large enough down payment to bring the loan amount to or below the ceiling.
Two quick budget examples
Think of these as starting points you can tailor with your lender.
Example 1: Entry purchase around 1.1 million dollars
- 10% down (110,000 dollars) results in a 990,000 dollar loan. That fits within Los Angeles County’s high‑cost conforming ceiling of 1,249,125 dollars.
- 20% down (220,000 dollars) results in an 880,000 dollar loan — also within the high‑cost conforming range.
Why this matters: staying in the conforming lane can mean more flexible underwriting and potentially lower reserve requirements than jumbo.
Example 2: Move‑up or lot purchase around 1.895 million dollars
- 20% down (about 379,000 dollars) results in a loan near 1,516,000 dollars. That exceeds the county high‑cost ceiling, so it is a jumbo loan.
Jumbo loans usually require stronger credit, larger down payments, and more cash reserves. Many lenders expect roughly 10% to 20% down for some jumbo programs and 6 to 12 or more months of PITI reserves, depending on your profile. Learn more about typical jumbo expectations here: Jumbo loan guide.
Monthly costs to plan for
Your monthly budget in the Highlands goes beyond principal and interest. Build a realistic plan that includes:
- Property taxes. California’s Proposition 13 sets a base rate of 1% of assessed value plus local assessments. In practice, many buyers should plan on roughly 1.0% to 1.3% of assessed value. You can look up the exact Tax Rate Area and line items through the Los Angeles County Auditor.
- HOA and Summit Club fees. Many Highlands enclaves include HOA dues and club access. Examples in listings show combined monthly costs in the hundreds of dollars. Always review the latest HOA budget, reserves, and any special assessments.
- Homeowners insurance in a wildfire area. After the 2025 fires, insurance availability and pricing have been a challenge in parts of coastal Los Angeles. Some buyers rely on the FAIR Plan when private carriers will not write a standard policy. Start insurance quotes early since coverage can affect financing and timelines. For context on recent trends, see this Los Angeles Times report on FAIR Plan growth.
First-time buyer assistance to explore
If you meet income, purchase price, and program requirements, down‑payment or closing‑cost help can be a meaningful boost. These programs open and close to new reservations, so timing is everything.
- City of Los Angeles: Low Income Purchase Assistance (LIPA), Moderate Income Purchase Assistance (MIPA), and Mortgage Credit Certificate (MCC). Get current details and lender contacts on the LAHD buyer assistance page.
- Los Angeles County: HOP80 and HOP120 offer 0% deferred second loans up to a set dollar cap or a percentage of the purchase price in eligible areas. Review eligibility and participating jurisdictions here: LACDA Home Ownership Program.
- State of California: CalHFA first mortgage options pair with the MyHome program and may include the periodic Dream For All shared‑appreciation program when open. Check current availability and income limits: CalHFA programs.
These programs require approved lenders and often a HUD‑certified homebuyer education course. If you plan to apply, start early with a participating lender.
How to compete and win in the Westside
Highlands listings can draw strong interest, especially when well priced. You do not have to waive protection to compete. Focus on certainty and speed.
Strengthen your financing signal
Ask your lender for the strongest letter they will issue before you bid. A standard pre‑approval is helpful, but a file that has been reviewed by underwriting shows more certainty to sellers. This guidance aligns with common buyer best practices explained in this buyer process overview.
Use smart offer tools
- Escalation clause. This addendum lets you beat competing offers by a set amount up to a cap. It can help in multiple‑offer situations but may reveal your ceiling and raises appraisal risk if the price runs ahead of comps.
- Appraisal gap coverage. You can offer to cover a shortfall between the appraised value and your offer price up to a specific dollar amount. This can strengthen your bid while keeping your risk controlled. Avoid fully waiving the appraisal contingency unless you have the cash to absorb a large gap.
- Inspection timing. Rather than waiving inspections, shorten your inspection period to show urgency. Many Westside buyers target around five business days when they are confident in the property and can get inspectors on site quickly.
- Earnest money. A larger good‑faith deposit can signal commitment. In many competitive markets, buyers offer between 1% and 5% of the purchase price. Ask your agent what is customary for the Highlands before you set your number.
Quick offer checklist
- Attach a recent lender letter and proof of funds or reserves with your offer.
- Decide in advance whether you will use an escalation clause and require seller verification of the competing offer.
- If needed, offer a capped appraisal gap amount you are fully prepared to fund; otherwise keep the appraisal contingency.
- Shorten, do not eliminate, inspections and contingencies.
- Review HOA documents, insurance quotes, and any special assessments right away. These items can change the economics of your purchase.
Step-by-step roadmap for first-time buyers
Here is a practical timeline you can follow. Adjust timing with your agent and lender based on inventory and your financing lane.
Pre‑search (0 to 4 weeks)
- Choose a local agent who specializes in Pacific Palisades and the Highlands. Local knowledge helps with enclave‑level pricing, HOA rules, and insurance realities.
- Speak with two to three lenders. If your target price exceeds the county high‑cost ceiling, include a jumbo specialist. Ask for a written pre‑approval and discuss down payment and reserve requirements. You can confirm loan‑limit basics here: FHFA loan limits.
- If you plan to use assistance, contact participating lenders early and confirm eligibility and reservation timing for LAHD, LACDA HOP80/HOP120, or CalHFA. Start any required homebuyer education courses: LAHD, LACDA, CalHFA.
Active search and offer prep (1 to 3 months)
- Tour with a checklist. Ask for HOA documents, review wildfire mitigation steps, and look for roof, foundation, and seismic updates. If a property was affected by smoke or fire, request documentation of remediation work.
- When you find a fit, have your lender prepare a near‑underwriting‑level package. Gather proof of funds and prepare a clean, signed offer.
- Choose your offer strategy. Decide on escalation and appraisal gap positions and confirm the property can be insured through a standard carrier before you remove contingencies.
Under contract to close (30 to 60 days typical)
- Order general, roof, and any specialty inspections right away. Given hillside topography, ask vendors about tree, drainage, and any landslide‑related risk if relevant.
- If you are using down‑payment assistance, confirm reservation and milestones with your participating lender since slots and timelines are program‑controlled.
- Lock your rate, finalize insurance, and confirm your escrow close date. Allow extra time for jumbo appraisals and underwriting.
Ready to begin?
Buying in the Highlands is about matching a hillside lifestyle to a smart, well‑timed plan. With clear budget math, a lender who knows high‑balance and jumbo options, and a straightforward offer strategy, you can compete confidently for the right home. If you want a neighbor’s perspective paired with seasoned Westside negotiation, connect with Kyle Leibovitch to map your first Highlands purchase.
FAQs
What should first-time buyers know about Palisades Highlands specifically?
- It is a hillside micro‑market within 90272 with gated enclaves, Summit Club access in many sub‑communities, and a mix of homes, townhomes, and lots developed largely in the 1970s.
How do 2026 loan limits affect a Highlands purchase?
- In Los Angeles County, loans up to 1,249,125 dollars can be high‑balance conforming; above that is jumbo, which often requires larger down payments and more reserves.
What is a realistic first-time buyer budget in the Highlands?
- Many entry options cluster near 1.0 to 1.2 million dollars, while larger single‑family homes and some lots start around 1.9 million dollars and go up from there.
What monthly costs beyond the mortgage should I plan for in 90272?
- Plan for property taxes near 1.0% to 1.3% of assessed value, HOA and Summit Club dues in the hundreds per month in many enclaves, and potentially higher insurance premiums due to wildfire risk.
Are there down‑payment assistance options for homes in Pacific Palisades?
- Programs may be available through LAHD, LACDA’s HOP80/HOP120, and CalHFA if you meet income and price limits, and they require participating lenders and often buyer education.
How competitive are offers in Palisades Highlands, and should I waive contingencies?
- Competition varies by listing, but you can stay competitive without waiving protections by shortening inspection timelines, considering a capped appraisal gap, and submitting a strong lender package.
What insurance steps should I take before making an offer in a wildfire‑impacted area?
- Get quotes from private carriers early, understand if you might need the FAIR Plan, and confirm insurability before removing contingencies since coverage can affect underwriting and closing.
