The premise: A two-car household spends $662 a month on average for their autos. A public transport-only household; $360 a month. That means transit riders should have an extra $302 a month for a mortgage.
In recognition of these savings, the Location Efficient Mortgage (LEM) is being tested in Chicago, giving low- and moderate-income home buyers in urban areas served by public transportation an opportunity to qualify for a bigger home loan. The LEM is also intended to improve air quality and reduce energy use.
The LEM was developed by a consortium including the Center for Neighborhood Technology in Chicago and the Natural Resources Defense Council. The Federal National Mortgage Association is backing the LEMs.
Source: American News Service