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| The Zero-Coupon/Interest-Only Fixed-Rate
Mortgage: An Alternative for Funding Low-to-Moderate Income Housing Author: Stephen F. Thode and Richard J. Kish Start Page: 263 Abstract: This proposal sets
forth a concept for the public/private finance of owner-occupied, single-family homes for
first-time homebuyers utilizing federal guarantees and private sector mortgages. Proposed
funding requires no new tax revenues. The security that the program revolves around is a
Zero-coupon/Interest-only Fixed-rate mortgage (ZIF). The ZIF has the potential to improve
the allocation of resources for subsidizing low-income housing, to reduce risk exposure to
rapidly declining property values, and to improve the self-esteem of a group of Americans
who have been depressed for far too long by making homeownership a reality. |
