Rising housing costs are locking American households out of homeownership.  But lower- and moderate-income households struggle to acquire mortgages even for lower-valued homes. Small-dollar mortgages, which are mortgages below $150,000, can be difficult or impossible to secure. Usually found in rural areas or distressed urban markets, small-dollar mortgages have higher denial rates than larger loans and their applicants face serious obstacles. These challenges block paths to homeownership, even for our nation’s affordable housing stock.

This Working Paper is based on a summer project at the Consumer Federation of America. It represents a work in progress and is the culmination of the internships of Aditya Mukundan and Devan Morey, with the help of their supervisor Sharon Cornelissen, Ph.D.