Small-Dollar Mortgages: Increasing Affordable Housing Options for Lower-Income Households

Increasing the availability of affordable housing options for lower-income renters is a priority for many communities. With an increase in housing prices and falling supply during the COVID-19 pandemic, the nation’s housing affordability has continued to deteriorate. Rents have increased dramatically in the last year, and lower-income renters struggle to find housing they can afford. Without affordable places to live, lower-income renters—many already overburdened by the cost of housing—often must make trade-offs that jeopardize their health, safety, and well-being.

While there is no shortage of policy solutions for addressing the affordable housing crisis, most of them overlook homeownership. And though there is a need for affordable rental units, renting does not always provide residents with the long-term affordability and security that homeowning could. Contrary to popular belief, owning one’s own home can be more affordable, even for lower-income families, than renting. In fact, it is cheaper to buy a home than it is to rent in two thirds of the country’s counties.

Across the nation, properties costing $100,000 or less would qualify for small-dollar mortgages. In many cases, if a low-income or cost-burdened renter purchased one of these homes, the monthly mortgage payment would be significantly cheaper than a rent payment, allowing the homeowner to build savings and equity and increase housing security.

Join us for Small-Dollar Mortgages: Increasing Affordable Housing Options for Lower-Income Households to learn about the benefits of, challenges to, and resources available for originating small-dollar mortgages. Help your community increase affordable housing—and access to homeownership—for low- and moderate-income residents.