An Analysis of the Neighborhood Impacts of the Mortgage Assistance Program in Dallas

Networks Financial Institute Working Paper No. 2009-WP-05

29 Pages Posted: 17 Jul 2009 Last revised: 10 Sep 2009

See all articles by Wenhua Di

Wenhua Di

Federal Reserve Bank of Dallas

James Murdoch

University of Texas at Dallas - School of Economic, Political and Policy Sciences

Jeilai Ma

affiliation not provided to SSRN

Date Written: June 1, 2009

Abstract

Down payment or closing cost assistance is a commonly used and effective program in addressing the wealth constraints of underserved homebuyers. This paper estimates the impact of the city of Dallas Mortgage Assistance Program (MAP) on neighborhood home values. We define neighborhoods for each sale based on distance from MAP properties, and estimate the difference-in-difference (DID) in home prices between neighborhoods with various numbers of MAP before and after MAP sales. We find that while MAP properties tend to locate in neighborhoods with generally lower property values, the infusion of MAP has no detrimental impact on neighboring property values overall.

Keywords: down payment assistance, affordable housing, neighborhood effects.

JEL Classification: R1, H5

Suggested Citation

Di, Wenhua and Murdoch, James and Ma, Jeilai, An Analysis of the Neighborhood Impacts of the Mortgage Assistance Program in Dallas (June 1, 2009). Networks Financial Institute Working Paper No. 2009-WP-05, Available at SSRN: https://ssrn.com/abstract=1432550 or http://dx.doi.org/10.2139/ssrn.1432550

Wenhua Di (Contact Author)

Federal Reserve Bank of Dallas ( email )

2200 North Pearl Street
Dallas, TX 75201
United States

HOME PAGE: http://www.dallasfed.org/research/economists/di.cfm

James Murdoch

University of Texas at Dallas - School of Economic, Political and Policy Sciences ( email )

P.O. Box 830688, GR 31
Richardson, TX 75083
United States

Jeilai Ma

affiliation not provided to SSRN

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
29
Abstract Views
594
PlumX Metrics