Targeted Areas

There are some definite advantages to purchasing a home in one of California’s Targeted Areas. For CalVet, these loans are funded from State Allocated Qualified Mortgage Bonds (QMB) which generally have a lower interest rate. The majority of California's 58 counties have targeted areas - with Los Angeles having almost half. Purchasing a home in these areas allows greater flexibility for buying a home.

What is a Targeted Area?

Areas that are "targeted" by the Federal Government were identified in the Federal Census as areas in California where 70 percent of the families who live there have an income that is 80 percent or less than the statewide median income. Only the census tracts identified by the Federal Government as "targeted" provides a waiver of the first-time homebuyer requirement, and higher sales price limits in all areas and higher income limits in most areas. Purchasing a home in these areas allows greater flexibility for buying a home.

Review purchase and income limits for general information and to determine if your property is in a targeted location, visit. www.HUD.gov

Advantages to buying in a Federal Designated Targeted Area

• The first-time homebuyer requirement is waived: Generally the Qualified Mortgage Bond (QMB) program requires that the borrower is a first-time homebuyer, but when the home being purchased is located in a Targeted Area, that requirement is not enforced.
• The income limits are higher in most areas: The maximum allowable income is higher in most Targeted Areas to expand homeownership opportunities to more borrowers.
• The sales price limits are higher in all areas: In all Targeted Areas, the limit on the price you pay for the home is raised to create a larger pool of available properties.

Contact us at 1-800-952-5626 and we can provide you with more information.