The funding of the mortgages for homes to be constructed in developing economies will be in the same manner as funding loans in the United States. Banks in the emerging economies and international financing interests will fund domestic banks in the developing economies based on the buyers providing evidence of legal ownership along with an appraisal to be approved by the domestic banks making the loan on each home. This approach insures that the funds will only go for the purchase of a home based on actual local cost without unnecessary fees being added. By this method the homes prices will not be inflated because each borrower is personally guaranteeing the repayment of the loan out of future income to be earned. The homebuyer can verify that the price being paid is resonable based on other local costs for material and eventualy for homes that have already sold. It is also feasible under this process to acquire international mortgage insurance to protect the lenders from loss on foreclosures. More important, international mortgage insurance will increase the number of lower income buyers that will qualify for a home loan.
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