Cleveland participates in program linking home buying to public transportation

Cleveland area residents now have a financial incentive to purchase a home near Greater Cleveland Regional Transit Authority’s (GCRTA) system.

The agency is participating in Fannie Mae’s Smart Commute™ initiative, which enables prospective homebuyers to count savings from using public transportation toward their household income, increasing their odds of being approved for a mortgage. Eligible homebuyers that purchase a home within a half-mile of a GCRTA rail station or quarter-mile of a bus stop can add a portion of their potential transportation savings to their qualifying income.

Homebuyers who obtain a mortgage under the initiative can make a 3 percent down payment toward the purchase price of the home. Fannie Mae will purchase the eligible mortgages from participating lenders.

GCRTA will provide homebuyers participating in the program free transit passes for three months.