In the U.S., households participate in two very different types of credit markets. Personal lending is characterized by continuous risk-based pricing in which lenders offer households a continuous distribution of borrowing possibilities based on estimates of their creditworthiness. This...

Models explaining whether households choose conventional or FHA mortgage financing typically use differential insurance premiums, loan-to-value (LTV) and payment-to-income underwriting standards, and local economic conditions to explain household behavior. Using a large and geographically...

Models of household choice of conventional and FHA financing typically use differential insurance premiums, loan to value and payment to income underwriting standards, and local economic conditions to explain household behavior. The credit history of the borrower has not been included in these...