This report examines the nature and scope of the housing problem in Peru. It reviews the evolution of the housing finance systems and main players of the housing finance system and driving forces for the change. It introduces mortgage finance development for medium and low income households with two case studies: Fondo and Creditos MIVIVIENDA.
It examines the residential mortgage market and its segments and constraints. It looks at factors constraining the development of housing finance mechanism and policies and strategies to overcome the bottlenecks for housing finance. It looks at the role of direct subsidies and other initiatives for low income households. Finally it looks at the alternatives for developing housing mechanisms in Peru, with focus on the development of a secondary mortgage market.