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Publication Date

November 2005

Author(s)

Client/Funder

Ford Foundation

This report presents descriptive statistics reviewing the experiences of Community Advantage Program (CAP) panel study low-income homeowners approximately one year after home purchase and, again, two to three years after purchase. A companion report compares a sample of these owners to similarly situated renters.

The purpose of this report is to present and summarize early trends from the Center for Community Capitalism’s (CCC) ongoing Community Advantage Program (CAP) panel study of low-income homeowners.

This report presents descriptive statistics reviewing the experiences of these homeowners approximately one year after home purchase and, again, two to three years after purchase. A companion report compares a sample of these owners to similarly situated renters.

Summary of Findings

The data presented in this report clearly indicates that CAP borrowers are a dynamic group, and this report only scratches the surface of the interactions between varied and complex impacts of homeownership. While the center plans to undertake multivariate analyses to better understand changes over time, a review of the descriptive statistics points to four important implications:

  1. The overall composition of the panel as a whole appears to be undergoing a modest transformation, but the underlying reality is that many individual households are experiencing more substantial change.
  2. Almost all borrowers without a credit score at origination had credit scores by 2005, and the profile of those scores is better than for the pool of remaining CAP borrowers as a whole. There are indications that other borrowers may have experienced some credit score deterioration between origination and 2005.
  3. Consistent with market trends when interest rates are falling, more than 1/3 of the panel sample has paid off their original CAP mortgage.
  4. Panel borrowers have maintained a strong attachment to the labor force over time.

Topics(s): Affordable Homeownership, Community Advantage Program, Impacts of Homeownership, Mortgage Finance