Smart Commute

In late July, Madison became the first Wisconsin community, and one of the first in the country, to offer Smart Commute mortgages.  Along with Mayor Cieslewicz, Fannie Mae, local banks, Madison Gas and Electricity, and Community Car, 1000 Friends of Wisconsin helped take this innovative program from idea to reality.  In October, Milwaukee added a Smart Commute program as well.  Partners in Milwaukee include Fannie Mae, Milwaukee County Transit System, County Executive Walker, and local banks.

Smart Commute is a mortgage program by which local lenders partner with Fannie Mae and community leaders to provide additional opportunities for home ownership to individuals and families that choose to live in areas well-served by transit and other modes of transportation.  By accounting for the reduced transportation expenditures that accompany living in such areas, lenders allow home buyers to borrow more than mortgage formulas would otherwise sanction.  Simply put, by spending less on transportation, you can spend more on your home. 

Incentives for home buyers in Madison using the Smart Commute program are:

  • An additional $200 to $250 per month in qualifying income from the lender based on transportation savings;

  • A $20 transit voucher and one month free towards a newspaper subscription from Capital Newspapers;

  • A free Home Performance energy inspection from Madison Gas and Electric;

  • A trial membership to Madison’s car sharing program, Community Car; and,

  • A copy of 1000 Friends’ In My Neighborhood: Celebrating Wisconsin’s Cities.

In addition to all of the benefits to the home buyer, the community as a whole also benefits from less driving and the ensuing congestion, diminished air quality and other negative impacts, as well as from a diverse population in its neighborhoods.

To learn more about Smart Commute, visit Fannie Mae’s feature page http://www.efanniemae.com/hcd/single_family/
mortgage_products/smartcommute.html

 

1000 Friends of Wisconsin
16 N. Carroll Street, Suite 810   Madison WI 53703    608.259.1000