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

Journal Article

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

Abstract

We estimate the effect of nine shared equity programs on the financial health and loan performance of participating households. Using both difference-in-difference and propensity score matching approaches, we compare outcomes of shared equity home purchasers with other similar first-time buyers. We find that shared equity purchasers have significantly less mortgage debt and pay less on their credit accounts each month than other similar purchasers. They perform just as well on their mortgages as nonshared equity purchasers, as defined by mortgage delinquencies. Finally, shared equity purchasers do not show appreciable differences in nonmortgage financial health measures compared with similar borrowers.

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