Mortgage Choice in Rural Housing

36 Pages Posted: 15 Jun 2017

See all articles by Kevin A. Park

Kevin A. Park

U.S. Department of Housing and Urban Development - Office of Policy Development and Research

Joshua Miller

U.S. Department of Housing and Urban Development (HUD)

Date Written: June 2017

Abstract

Rural homeownership is promoted in the United States by mortgage insurance programs administered by the federal government. We analyze the choice between assistance offered by two such agencies: the Federal Housing Administration and the Rural Housing Service. We find applicants are sensitive to the relative annual mortgage insurance premiums and guarantee fees. However, there are also persistent racial differences as well as institutional effects. We also find the application and origination process is substantially longer in the RHS program, but variation in closing times does not clearly impact mortgage choice.

Keywords: mortgage, housing, insurance, rural, Federal Housing Administration, Rural Housing Service

JEL Classification: R3, R38, R51, Q15, G1, G18, G2, G21, G22, G28

Suggested Citation

Park, Kevin Alan and Miller, Joshua, Mortgage Choice in Rural Housing (June 2017). Available at SSRN: https://ssrn.com/abstract=2986176 or http://dx.doi.org/10.2139/ssrn.2986176

Kevin Alan Park (Contact Author)

U.S. Department of Housing and Urban Development - Office of Policy Development and Research ( email )

451 Seventh Street SW
Washington, DC 20230
United States

Joshua Miller

U.S. Department of Housing and Urban Development (HUD) ( email )

451 Seventh Street S.W.
DC, WA 20410
United States

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