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119-hr-6774119th CongressWALLET

FHA Small-Dollar Mortgages Act

Sponsored By: Representative Waters, Maxine [D-CA-43]

Introduced

Summary

Expand access to small-dollar mortgages. The bill would authorize the Secretary of Housing and Urban Development, through the Federal Housing Commissioner, to create a pilot within one year to increase availability of mortgages with original principal balances of $100,000 or less that are secured by 1- to 4-unit owner-occupied homes.

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  • Homebuyers: Could receive direct grants to cover down payments, closing costs, appraisals, and title insurance when they obtain a small-dollar mortgage.
  • Lenders: Could get direct payments and technical assistance to encourage origination of small-dollar mortgages, and the Federal Housing Administration could adjust terms or fees to lower lenders' costs.
  • HUD and oversight: HUD would have to submit annual reports tracking loan outcomes, risks to the Mutual Mortgage Insurance Fund, 10-year originations data, and regional analyses. The pilot would terminate 4 years after it starts and no new small-dollar mortgage pilots could be established after a 3-year post-enactment window.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Pilot to expand small-dollar mortgages

If enacted, HUD would have to set up a pilot within one year to increase access to small-dollar mortgages. The pilot could pay lenders, change FHA terms and costs, and give grants to buyers for down payments, closing costs, appraisals, and title insurance. HUD would also be able to do outreach and give technical help to lenders. HUD would report annually on outcomes, risks to the FHA Mutual Mortgage Insurance Fund, and regional needs.

Ban on new small-dollar pilots

If enacted, after the three-year period starting on the date of enactment HUD and the FHA Commissioner would be barred from newly establishing any small-dollar mortgage pilot programs. This restriction would take effect once that three-year window ends.

Sponsors & CoSponsors

Sponsor

Waters, Maxine [D-CA-43]

CA • D

Cosponsors

  • Rep. Bera, Ami [D-CA-6]

    CA • D

    Sponsored 3/18/2026

Roll Call Votes

No roll call votes available for this bill.

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