New Updates on PD&R Edge

Alternative Pathways to Affordable Homeownership

A Pew Charitable Trusts survey conducted in 2019 found that one in five home borrowers pursued alternative financing options at least once as a pathway to homeownership when they could not access traditional mortgages. Compared to traditional mortgages, alternative financing methods often result in higher costs, lost equity, and eviction. On August 10, 2022, the Urban Institute held “The Push and Pull of Alternative Pathways to Affordable Homeownership,” an event discussing recent research on alternative financing arrangements and their disproportionate use by race and income. The event featured a panel that highlighted the viability of these financing methods for increasing affordable homeownership for low-income and minority borrowers when federal protections are in place.