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

39 Pages Posted: 11 Jan 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 paper employs recent mortgage origination data to focus on the revealed preferences of low-and-moderate income (LMI) households in home purchase mortgage choice. We 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.

Keywords: housing finance, mortgage choice, low-and-moderate income

JEL Classification: D12, G18, G21, J10, L85, O18, R21

Suggested Citation

LaCour-Little, Michael, The Home Mortgage Preferences of Low-and-Moderate Income Households. Real Estate Economics, Forthcoming. Available at SSRN:

Michael LaCour-Little (Contact Author)

Federal National Mortgage Association (Fannie Mae) ( email )

3900 Wisconsin Avenue, NW
Washington, DC 20016-2892
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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