Homeownership for the Long Run: An Analysis of Homeowner Subsidies
28 Pages Posted: 21 Feb 2011
Date Written: November 10, 2010
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