What Are the Targeted Areas in California Veteran’s Home Loan Programs?


How to stop renting and start owning? Well, there are a few options that military veterans and active duty personnel should explore, like the Cal Vet home loan program. The Cal Vet Home Loan Program has helped countless California veterans achieve the American dream of homeownership. Cal Vet's home loan program offers many benefits to borrowers, including lower than market interest rates and little or no down payment. Now that the eligibility requirements have been broadened, virtually every veteran who wants to buy a home in California qualifies for a Cal Vet home loan.

Cal Vet home loans are designed to save you money and protect your investment. If you buy a home in a Designated Target Area (AT) with your Cal Vet home loan, you may qualify for even more benefits. Buying a home in a (TA) gives you more flexibility as the first-time homebuyer requirement is lifted and there are limits. higher selling prices in all areas and higher income limits in most areas.

The definition of a (TA)

Areas that have been targeted by the federal government have been identified in the federal census as areas where 70 percent of families have income less than or equal to 80 percent of the state's median income. Cities, counties, and other government agencies may have specific areas within their jurisdiction that are “targeted,” but only census tracts identified by the federal government as “targeted” are used for Cal Vet home loan purposes.

To encourage Cal Vet home loan recipients to buy homes in (TA), buyers are given certain incentives. Mortgage loans granted under the Cal Vet program for the purchase of housing in targeted areas are financed by qualified mortgage bonds allocated by the state (QMB). QMBs are tax-exempt private activity bonds.

Benefits of buying a house in a (TA)

About 33 of California's 58 counties have targeted areas, but Los Angeles County has nearly half of all targeted areas in the state. Typically, QMB loans require you to purchase a first home, but this requirement is not enforced if you are purchasing a home in a targeted area. The maximum allowable income limit is also higher in most of the targeted areas, providing borrowers with increased homeownership opportunities. The limit on the price you can pay for a home is also increased to provide buyers with a wider range of available properties.

The purchase price of homes in targeted areas cannot exceed 110% of the average purchase price of the square footage for the statistical region or county where the property is located. The income limits that applicants must qualify for are issued annually by the US Department of Housing and Urban Development. For example, as of June 25, 2013, the income limit for one to two people buying a home in a targeted area of ​​Los Angeles County is $ 101,160. Purchase price limits in targeted areas of Los Angeles County are $ 823,308 as of the aforementioned date.

QMB loans are only available for single-family residences, including condominiums and mobile homes located on land owned by the applicant. To determine if the home you want to buy is in a targeted area and is eligible for a QMB loan, contact the US Department of Housing and Urban Development.

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