FHA Small-Dollar Mortgages Act
Sponsored By: Representative Waters, Maxine [D-CA-43]
Introduced
Summary
Expand access to small-dollar mortgages by authorizing HUD and the Federal Housing Administration to run a pilot that encourages originations of loans with original balances of $100,000 or less and supports borrowers with grants and outreach.
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- Families and homebuyers: Would offer direct grants to borrowers for down payments, closing costs, appraisals, and title insurance and provide outreach so more people can pursue small-balance mortgages.
- Mortgage lenders: Would create incentives and technical assistance for mortgagees and allow FHA to adjust loan terms and costs to help lenders make small-dollar loans viable.
- Oversight and scope: Would require annual reports to Congress tracking outcomes, risks to the Mutual Mortgage Insurance Fund, 10 years of historical small-loan data, and regional analysis including rural areas. The pilot would run for four years after it starts and authority to create new pilots would end three years after enactment.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Help for small-dollar home loans
If enacted, HUD would be allowed to start a pilot to increase access to small-dollar mortgages. The pilot would be started no later than 1 year after enactment and would end 4 years after it begins. The pilot could include five tools: payments to lenders to encourage origination, changes to FHA loan terms and costs, direct grants to borrowers for down payments and closing costs (including appraisals and title), outreach to potential borrowers, and technical help for lenders. Grants and payments would be available only as part of the pilot and HUD would not be required to use every tool. A "small-dollar mortgage" would mean an original principal balance of $100,000 or less on a 1- to 4-unit property that is your principal home. The bill would also require annual reports to Congress tracking pilot outcomes and risks to the FHA Mutual Mortgage Insurance Fund while the pilot is active and for one year after it ends.
No new small-dollar pilots after 3 years
If enacted, after three years from the date of enactment HUD and the Federal Housing Commissioner would not be able to start any new pilot program to increase access to small-dollar mortgages. This would limit the agencies' future authority to create similar pilots after that three-year window. The provision does not itself create or fund borrower payments or grants.
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.
View on Congress.gov