challeges facing mortgage financing in kenya

Topics: Mortgage loan, Mortgage, Loan Pages: 45 (10427 words) Published: February 25, 2014
CHALLENGES FACING MORTGAGE FINANCING IN KENYA
(A Case Study of the Housing Finance Company of Kenya, Head Office, Nairobi)

TABLE OF CONTENTS

Declaration…………………………………………………………………….…...............i Dedication…………………………………………………………………………………ii Acknowledgement………………………………………………………………………..iii Table of Contents…………………………………………………………………………iv List of tables………………………………………………………………………………vi List of figures…………………………………………………………………………….vii Abstract………………………………………………………………………………….viii CHAPTER ONE………………………………………………………………………....1 1.0 INTRODUCTION…………………………………………………………………...1 1.1 Background of study…………………………………………………………….......1 1.1.1 Profile of the organization…………………………………………………...…3 1.2 Statement of the problem……………………………………………………………4 1.3 Research Objectives…………………………………………………………………5 1.3.1 General Objective………………………………………………………………5 1.3.2 Specific Objectives…………………………………………………………......5 1.4 Research Questions…………………………………………………….……………6 1.5 Importance of the Study………………………………………………..……………6 1.6 Scope of the Study…………………………………………………………..………7 1.7 Conceptual Framework……………………………………………………………...7 CHAPTER TWO………………………………………………………………………...8 2.0 LITERATURE REVIEW…………………………………………………...………8 2.1 Introduction………………………………………………………………………….8 2.2 Mortgage Qualification Requirements………………………………………………8 2.2.1 Income………………………………………………………………………….8 2.2.2 Employment……………………………………………………………………9 2.2.3 Down Payment……………………………………………………………...…10 2.2.4 The Mortgage Instrument………………………………………………..……11 2.2.5 Credit History………………………………………………………………….11 2.2.6 Mortgage Repayment………………………………………………….………12 2.3 Land Policies…………………………………………………………………….....14 2.4 Housing Provision………………………………………………………………….17 CHAPTER THREE.........................................................................................................20 3.0 RESEARCH METHODOLOGY………………………………………………….20 3.1 Introduction……………………………………….………………………………..20 3.2 Research Design……………………………….…………………………………...20 3.3 The Study Population…………………………….………………………………...20 3.4 Sample and Sampling Techniques…………………………………………………21 3.5 Data Collection and Instrumentation………………………………………………21 3.6 Data Analysis and Presentation……………………………………………………22 CHAPTER FOUR………………………………………………………………………23 4.0 DATA ANALYSIS, PRESENTATION AND INTERPRETATION……………23 4.1 Introduction………………………………………………………………………...23 4.2 Quantitative Analysis………………………………………………………………23 4.2.1 The Effect of Mortgage Qualification Requirements………………………….28 4.2.2 The Effect of Land Policies ……………………………………………….......38 4.2.3 The Effect of Housing Provision………………………………………………40 CHAPTER FIVE……………………………………………………………………….43 5.0 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS................................................................................................43 5.1 Introduction…………………………………………………………………………43 5.2 Summary of Findings……………………………………………………………….43 5.3 Conclusions……………………………………………………………………........44 5.4 Recommendations…………………………………………………………………..45 5.5 Suggestions for Further Studies…………………………………………………….46 REFERENCES………………………………………………………………………….46 APPENDIX A: LETTER OF INTRODUCTION…………………………………….49 APPENDIX B: QUESTIONNAIRE…………………………………………………...50 APPENDIX C: BUDGET PLAN………………………………………………………57 APPENDIX D: WORK PLAN………………………………………………………....58

LIST OF TABLES
Table 4.1 Response rate…………………………………………………………………23 Table 4.2 Number of customers interviewed……………………………………………24 Table 4.3 Gender response………………………………………………………………25 Table 4.4 Working experience…………………………………………………………...26 Table 4.5 Mortgage loan acquisition…………………………………………………….27 Table 4.6 Effect of mortgage qualification requirements………………………………..28 Table 4.7 Interest rate……………………………………………………………………29 Table 4.8 Customer’s income……………………………………………………………30 Table 4.9 Customers at Housing Finance………………………………………………..31 Table 4.10 Down...

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