FHA Small-Dollar Mortgages Act

Key Points

• This bill creates a four-year test program to help people buy lower-priced homes. It focuses on mortgages for $100,000 or less, which are often hard to get because banks make less money on them compared to larger loans.
• To encourage banks to offer these loans, the government would pay lenders directly and provide technical help. This addresses the problem where fixed costs make small loans less profitable for banks to process.
• Homebuyers could receive direct grants to help with expensive upfront costs. This money can be used for down payments, closing costs, home appraisals, and title insurance.
• The program is aimed at primary residences with one to four units. It also requires the government to track who gets these loans and identify which parts of the country, including rural areas, need them most.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.