The nation’s largest lender, Fannie Mae, has partnered with NJ Transit to encourage home ownership near mass transit. The program is called "Smart Commute" and enables buyers to qualify for larger mortgages with a lower down payment.

Eligible buyers must purchase property within a half mile of a train station or a quarter mile of a bus stop and own no more than two cars. Money saved due to transit use — pegged by Fannie Mae as $200 per month for single-income applicants and up to $250 per month to applicants from dual wage households — will be included as buyer’s income. That increases overall home pricing power by around $10,000 and allows a larger mortgage.

Under the program, down payments can be as low as 3%. In addition, NJ Transit will provide participants two rail, light rail or bus passes for one month.

Similar programs have been launched in Portland, OR, Milwaukee, Cleveland, and Delaware. New Jersey is the most populated area to offer it.

"Smart Commute" began in October and is available through companies associated with the New Jersey Association of Realtors and 11 lenders certified by Fannie Mae. See www.njtransit.com. 

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