The Sustainability of First-Time Homeownership
In this post we take up the important question of the sustainability of homeownership for first-time buyers. The evaluation of public policies aimed at promoting the transition of individuals from renting to owning should depend not only on the degree to which such policies increase the number of first-time buyers, but also importantly on whether these new buyers are able to sustain their homeownership. If a buyer is unprepared to manage the financial responsibilities of owning a home and consequently must return to renting, then the household may have made little to no progress in wealth accumulation. Despite the importance of sustainability, to date there have been no efforts at measuring the sustainability of first-time homeownership. We provide an example of a first-time home buyer sustainability scorecard.
Being Up Front about the FHA’s Up-Front Mortgage Insurance Premiums
The Federal Housing Administration (FHA) played a significant role in maintaining mortgage credit availability following the onset of the subprime mortgage crisis and through the Great Recession.
Risky Business: Government Mortgage Insurance Programs
W. Scott Frame, Kristopher Gerardi, and Joseph Tracy Editors’ note: The column headings in the final table in this post have been corrected from an earlier version. Homeownership has long been a U.S. public policy goal. One of the many ways that the federal government subsidizes homeownership is through mortgage insurance programs operated by the […]