Would we get Investment Test credit for purchasing some mortgage-backed securities if only 35 % of the loans were made in our AAs? All are for single family homes and made to LMI folks, but not all are in LMI tracts.

I read in the Q &As that housing related bonds or securities must primarily address affordable housing but it didn't say anything about AA. I'm thinking it might be like any other investment, in that it must benefit our area. As I said, the majority of the loans are outside our AA, but nearby. We are in a more rural area and many of these folks may work or otherwise engage within our AA.

I admit I know known nothing about this particular topic so any guidance, in somewhat plain English, would be helpful.

You could just split the record into two, one that is proportionate to your assessment area, and the other half for the portion that is outside of your AA. Just make sure you document how you got to the number that you did for the pro rata share of the assessment area.