Lenders Bow To the Carless - mortgage deals for people who live in high-density areas with good mass transit - Brief Article

Sierra, May, 2000 by Jennifer Hattam

Living in the city conserves resources. Now, in Seattle, it can save money too. The Location Efficient Mortgage (LEM), introduced in November by Continental Savings Bank and Fannie Mae, the nation's largest home-mortgage funder, offers down payments as low as 3 percent to people choosing high-density urban areas well-served by mass transit. These homebuyers can also qualify for larger loans. It's the first time a bank has recognized that less car use equals more disposable income.

Residents of Chicago, Los Angeles, and the San Francisco Bay Area will be able to apply for the mortgage program this year. To help bring the LEM to your neighborhood, contact the Center for Neighborhood Technology at (773) 278-4800.