Affordable Homeownership: An Evaluation of the Near-Term Effects of Shared Equity Programs

We estimate the effect of nine shared equity programs on the short-term financial health and loan performance outcomes of participating households. Using both difference-in-difference and propensity score matching approaches, we compare the outcomes of shared equity home purchasers with the outcomes...

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Bibliographic Details
Published inHousing policy debate Vol. 29; no. 6; pp. 865 - 879
Main Authors Theodos, Brett, Stacy, Christina Plerhoples, Braga, Breno, Daniels, Rebecca
Format Journal Article
LanguageEnglish
Published Abingdon Routledge 02.11.2019
Taylor & Francis Ltd
Subjects
affordable homeownership
Debt
Equity
financial health
Health status
Home equity loans
Home financing
Home ownership
Homeowners
Households
Lines of credit
Metropolitan areas
Mortgages
Propensity
shared equity
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Summary:We estimate the effect of nine shared equity programs on the short-term financial health and loan performance outcomes of participating households. Using both difference-in-difference and propensity score matching approaches, we compare the outcomes of shared equity home purchasers with the outcomes of other similar first-time home buyers in their metropolitan regions. We find that shared equity purchasers have, on average, significantly less mortgage debt and pay less on their credit accounts each month than other similar purchasers, and they are appreciably less likely to have a home equity line of credit. They also perform just as well on their mortgages as nonshared equity purchasers do, as defined by having any 90- to 180-day mortgage delinquencies. Finally, shared equity purchasers do not show appreciable differences in nonmortgage financial health measures compared with similar borrowers.
ISSN:1051-1482
2152-050X
DOI:10.1080/10511482.2019.1596965