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Working Paper

Homeownership for the Long Run: An Analysis of Homeowner Subsidies

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.
11.02.2010WP 10-21Revisions WP 10-21RDOI 10.26509/frbc-wp-201021
Keywords mortgage default, interest rate subsidy, down-payment subsidy, housing-finance policy
JEL Classification Codes H53, I38, R31
Suggested Citation

Ergungor, O. Emre. 2010. “Homeownership for the Long Run: An Analysis of Homeowner Subsidies .” Federal Reserve Bank of Cleveland, Working Paper No. 10-21. https://doi.org/10.26509/frbc-wp-201021