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Thinking of buying a new home? Think about buying one within a quarter mile of a bus stop and within a half mile of MetroLink stop and see how much more you can get for your dollar.

Under the new Smart Commute Initiative launched in St. Louis on Oct. 28, residents of St. Louis City and County and St. Clair County can get $200 to $250 more in monthly income credit for buying a house near public transit. The extra credit allows applicants a better chance of getting loan approval, and others will be able to borrow more money, as much as $50,000 more in some cases. The maximum loan amount under the program is $333,700.

For someone making $40,000 a year, the Smart Commute program could mean the difference between a $162,000 purchase price and a $172,000 purchase price considering several assumptions including no monthly debt, a 6.5% interest rate, 3% annual taxes and insurance and sufficient saved funds to cover the closing costs.

“The Smart Commute Initiative is an excellent opportunity for individuals to realize great savings and build wealth by living near MetroLink. Not only can home buyers get extra credit towards a home loan, they may be able to reduce the number of cars they own which would be a significant cost savings annual. By living in an area accessible to public transit, the savings on home loans, car expenses and better quality of life are enormous,” said Thomas Shrout, executive director of CMT.

“Studies have shown that some people are spending more on transportation costs than they are on housing. By taking advantage of public transportation, people can reduce auto ownership and put that savings into building wealth though home ownership,” Shrout added. “I know, I got rid of a car four years ago and figure I save $6,000 per year.”

Don't miss the CMT Living Near MetroLink Series.

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