Homeownership for the Long Run: An Analysis of Homeowner Subsidies

Ergungor, O. Emre

doi:10.2139/ssrn.1723445

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Homeownership for the Long Run: An Analysis of Homeowner Subsidies

FRB of Cleveland Working Paper No. 10-21

28 Pages Posted: 21 Feb 2011

See all articles by O. Emre Ergungor

O. Emre Ergungor

Bank of America Merrill Lynch

Date Written: November 10, 2010

Abstract

This paper examines the impact of interest-rate and down-payment subsidies on default rates and losses given default, and finds that down-payment subsidies create successful homeowners at a lower cost than interest-rate subsidies.

Keywords: mortgage default, interest rate subsidy, downpayment subsidy, housing finance policy

JEL Classification: H53, I38, R31

Suggested Citation: Suggested Citation

Ergungor, Ozgur Emre, Homeownership for the Long Run: An Analysis of Homeowner Subsidies (November 10, 2010). FRB of Cleveland Working Paper No. 10-21, Available at SSRN: https://ssrn.com/abstract=1723445 or http://dx.doi.org/10.2139/ssrn.1723445