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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.
11.02.2010ISSN 2573-7953 WP 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

Working Papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded official Federal Reserve Bank of Cleveland publications. The views expressed in this paper are those of the authors and do not represent the views of the Federal Reserve Bank of Cleveland or the Federal Reserve System.

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