The Strange Marriage of Metro and Mortgages
An article in today’s Atlanta Constitution Journal offers information on a public transit/home ownership initiative being kicked off today in metro Atlanta. The program, Smart Commute allows home buyers to qualify for larger mortgages if they buy homes near public transportation lines and promise to use them. An excerpt from the Journal article:
Here's how it works: Potential home buyers promise to swap driving for public transportation. The program allows only one car payment per household. The savings on car notes, insurance, gasoline and maintenance are added to income and other calculations that determine mortgage amounts. Mortgage rates do not change. Houses must be no more than one-quarter mile from a MARTA bus stop or a half-mile from a rail station.
The article goes on to say that the average Atlanta couple “could qualify for an extra $14,000 on a mortgage” through the program. A single person could qualify for up to an extra $11,000.
Fannie Mae started the program in 2001, and Smart Commute is now in place in 16 other metropolitan areas, but seems to be having trouble getting off the ground. And yes, local readers, it does appear to be in place in the DC area. Check out the Washington Regional Smart Commute Initiative for more information. The Washington initiative offers participants additional transit benefits, including:
METRO: 50% off all Metrobus and Metrorail purchases of up to $100 per month for up to 6 months
FlexCar: Free lifetime membership and $25 in free usage credits
Arlington Transit: 50% discount for up to two qualified borrowers on up to $600 in fare media for ART, Metrobus, and Metrorail
DASH: 30-day free pass, one per household
And many more…
I personally think this is a great idea and would love to see it promoted more than it currently is.
Post Author:
cs | 12:35 PM |
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Baltimore has a similar program, although I haven't seen any data to indicate its success.
The Washington Smart Commute program is a pittance. I wouldn't change my commuting habits for that!
Well, Randolph, you also aren't in any position to buy a house, are you?
I suppose not. But that should tell you something about the size of the benefits.
Upping one's loan by 11,000 is nothing to scoff at.
I was talking about the DC incentives.
I think the DC incentives are in addition to a higher mortgage.
