Homebuyers in Los Angeles County and Orange County now have access to an innovative mortgage product called the Location Efficient Mortgage^SM which allows them to qualify for up to $50,000 more when applying for a home loan.  Click here for participating local lenders.

The Location Efficient Mortgage^SM allows people to qualify for larger loan amounts if they choose a home in a densely populated community that is well-served by public transit, and where destinations are located close together so that they can also walk and bike instead of driving everywhere.  Research has shown that people who live in these compact communities drive less and own fewer cars than those who live in sprawling suburban communities, and that they can save thousands of dollars in automobile-related expenses each year.  With the Location Efficient Mortgage^SM this transportation savings is counted as "available income" when the lender calculates the amount of loan a borrower can qualify for - stretching borrowing capacity significantly in efficiently-planned neighborhoods.  For example, a household making $50,000 a year can qualify for a $140,000 home in a low-density suburb, but a $197,00 home in a transit-accessible, urban-style community.

This Web site provides access to maps of Los Angeles County and Orange County and shows the relative location efficiency of each neighborhood.  The Location Efficient Mortgage^SM calculator allows users to determine the amount of a Location Efficient Mortgage^SM they could qualify for, and to compare this with a standard mortgage.