The Home Purchase Mortgage Preferences of Low- and Moderate-Income Households

26 Pages Posted: 24 Aug 2007

See all articles by Michael LaCour-Little

Michael LaCour-Little

Federal National Mortgage Association (Fannie Mae); California State University at Fullerton


Housing policy in the United States has long supported homeownership, yet variation persists across income groups. This article employs recent mortgage origination data to focus on the revealed preferences of low- and moderate-income (LMI) households in home purchase mortgage choice. I identify the factors associated with conventional conforming, FHA, nonprime and specially targeted programs. Empirical results show that individual credit characteristics and financial factors, including pricing, generally drive product choice, with some variation evident when loans are originated through brokers. Results also indicate that targeted conventional programs effectively compete with government-insured products in the LMI segment.

Suggested Citation

LaCour-Little, Michael, The Home Purchase Mortgage Preferences of Low- and Moderate-Income Households. Real Estate Economics, Vol. 35, No. 3, pp. 265-290, Fall 2007, Available at SSRN: or

Michael LaCour-Little (Contact Author)

Federal National Mortgage Association (Fannie Mae) ( email )

1100 15th St NW
Washington, DC 20005
United States
202-752-3318 (Phone)

California State University at Fullerton ( email )

5133 Mihaylo Hall
Fullerton, CA 92834-6848
United States
657-278-4014 (Phone)
657-278-2161 (Fax)

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