Small-dollar mortgages are scarce, making the transition to sustainable homeownership difficult for low-and moderate-income households in low-cost markets across the country. Urban Institute researchers served as the research partner for the MicroMortgage Marketplace (MMM), a demonstration project to explore the viability of a
-small-dollar mortgage product in Louisville, Kentucky and Southern Indiana. The product was designed to reduce ancillary fees and costs to consumers and remove frictions that limit lending in this space. This brief describes the need for the program in majority Black neighborhoods around Louisville and the proposed approach, documents the first phase of product design and delivery, outlines challenges, and explores recommendations for expanding access to small dollar mortgages in other regions.
This brief was corrected on December 16, 2020. In a previous version, the Homeownership Council of America was incorrectly called the Housing Council of America in box 3 on page 13.