We investigate factors determining Korean households' choice of mortgage lender between the Korean Housing Finance Corporation and private lenders using nationwide survey data from 2004 to 2006. We propose five different specifications, such as binomial logit, bivariate probit, multinomial logit, nested logit, and dynamic logit. Korean low-and moderate-income households are more inclined to
... [Show full abstract] choose private lenders, differing from findings for the U.S., where borrowers enjoy a wider mortgage product array and a variety of options, and most importantly looser loan underwriting standards. We also test the proposed models' prediction power using out-of-sample data. Logit and nested logit show the best performance.