The first embraces those who can supply in cash 50 per cent or more of the price of the home, and who can get the remainder on first mortgage2 from any of several different sources.

The second includes those whose cash resources are within the approximate limits of from 25 to 40 per cent, and who borrow the amount needed either on first mortgage (usually only from a building and loan association) or through the use of a first and a second mortgage.

The third comprises those who have but 10 or 15 per cent of the price, who sometimes finance through mortgage agencies, but more frequently by means of an installment purchase agreement.

First Group

Families in the first group generally experience little difficulty in obtaining the amount needed by placing a first mortgage on the property acquired. Since there are a number of lending agencies anxious to make conservative mortgage loans, the problem of these families often resolves itself into a mere question of choosing the one offering the most satisfactory service and terms.

1 Adapted from Present Home Financing Methods (U.S. Department of Commerce, Division of Building and Housing, 1928), pp. 1.12.

2 In some localities a "deed of trust" is used in place of a mortgage. The instruments are similar in that their effect is to pledge the property as security for the loan. One important difference between the two is that, in many jurisdictions, in case of failure to make payments a forced sale of the property may be effected more quickly under the deed of trust.