Expanding Access to Homeownership through Lease-Purchase

Authors: Carol Galante, Carolina K. Reid, and Rocio Sanchez-Moyano

Release Date: January 2017

In 2016, the rate of homeownership in the United States dropped to its lowest level in over 50 years. A number of barriers are preventing younger, lower-income, and minority households especially from buying homes, with negative implications for both their financial well-being and for the broader U.S. economy.

Through this new policy brief, the Terner Center for Housing Innovation outlines an idea that could help these families overcome some of the key financial and credit barriers to buying a home. The brief explores the lease-purchase model and proposes a new mortgage product that could support the responsible scaling of this idea.