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

How do you 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 attain the American Dream of home ownership. Cal Vet’s home loan program offers numerous advantages for borrowers, including below-market interest rates and low or no down payment. Now that eligibility requirements have been expanded, virtually every veteran who wants to buy a home in California qualifies for a Cal Vet home loan Wright.

Cal Vet home loans are designed to save you money and protect your investment. If you buy a home in a designated target area (TA) with your Cal Vet home loan, you could qualify for even more benefits. Purchasing a home in a (TA) gives you greater flexibility because the first-time homebuyer requirement is waived and there are higher sales price limits in all areas and higher income limits in most areas.

The Definition of a (TA)

Areas that have been targeted by the Federal Government were identified in the Federal Census as areas where 70 percent of families have an income that is 80 percent or less than the statewide median income. Cities, counties, and other governmental agencies may have specific areas in 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’s), homebuyers are provided with certain incentives. Home loans provided through the Cal Vet program for the purchase of homes in targeted areas are funded from State Allocated Qualified Mortgage Bonds (QMB). QMBs are tax-exempt private activity bonds.

Benefits of Buying a Home in a (TA)

Approximately 33 of the 58 counties in California have targeted areas, but Los Angeles County has almost half of all the targeted areas in the state. Typically, QMB loans require you to be a first-time homebuyer, but that requirement isn’t enforced if you buy a home in a targeted area. The maximum allowable income limit is also higher in most targeted areas, giving borrowers expanded homeownership opportunities. The limit on the price you may pay for a home is also raised in order to provide buyers with a wider range of available properties.

The purchase price for homes in targeted arreas cannot exceed 110% of the average area purchase price for the statistical area 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 who purchase a home in a targeted area in Los Angeles County is $101,160. Purchase price limits in targeted areas in 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 that’s owned by the applicant. To determine if the home you’d like to purchase is in a targeted area and qualifies for a QMB loan, get in touch with the United States Department of Housing and Urban Development.

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5 Tips About Home Loans For People With Bad Credit

You might be surprised to learn that home loans for people with bad credit are not as hard to get as some people would have you believe. Follow these 5 tips to getting a home loan with bad credit.

Find A Good Deal
Finding a good deal on real estate can be challenging, but it can also be very rewarding. Those of you with bad credit could benefit significantly if you find a good real estate deal to pursue. When you buy a house at a cheap price and you’re getting equity in the property immediately the loan officer sees your bad credit home loan as a partially secured loan. If you want to find out more about how this type of transaction can help you get a mortgage with bad credit talk to your mortgage broker Best Mortgage Broker In ACT.

Investigate Creative Financing
When you are looking for a bad credit home loan sometimes you need to get creative. There are a variety of ways to get into a home and get accepted for loans. Adjustable rate mortgages (ARM’s) are one very popular way that people use to get approved for a mortgage even if they have bad credit. I expect these ARM’s to remain popular so long as interest rates stay low. Another way to creatively finance your bad credit home loan is by getting the seller involved. The seller can cover part of the down payment on purchase. Or you can have the seller carry back a 2nd mortgage that you repay back to them at an attractive interest rate. These creative methods can get you the extra $10,000 you need to get accepted for a mortgage.

Have A Down Payment
A down payment of even 3-5% can make a huge difference both in getting accepted for a loan as well as decreasing the interest rate that you receive on the loan. A drop of 2% in the interest rate on a $150,000 loan can save you over $72,000 in interest over the course of a 30 year loan. Plus you save by having a smaller amount to finance. If necessary you may even want to wait an additional 3-6 months before going for a mortgage in order to save more money for the down payment. That being said, keep in mind that even if you don’t have a down payment now you can always refinance in the future and add money to the refinancing.

Shop Around
While many mortgage brokers will try to get you to think that their skill and experience means that they are the only ones qualified to get you the loan you need this is not true. Don’t believe any mortgage broker who tells you that if they can’t get you a loan then no one can. It simply isn’t true. Especially now when you can find so many willing lenders on the internet it pays to shop around until you find a lender who is willing to work with you. The other good thing about internet lenders is that they are often experienced in securing loans for bad credit applicants so they can often work miracles for you. An online mortgage specialist is often the best person to contact to get home loans for people with bad credit.

Boost Your Credit Score
It may seem obvious, but I’ll say it anyway. If you want to get a bad credit home loan then boost your credit rating. This can be as simple as contacting the major credit bureaus and making sure that their records are accurate. Make sure all of your payments, hopefully for the past 12 months at a minimum, have been on time. If you’re considering buying a house in the near future do not take out any new loans or credit obligations as this can harm your credit rating too.

Bad credit doesn’t have to stop you from getting a mortgage even if it does make it more expensive. Home loans for people with bad credit are available from a variety of lenders who specialize in bad credit home loans. They can make it easy for you to finance your perfect home.

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