This bill creates a new pilot program to help more people buy homes with smaller mortgages. Right now, many lenders avoid offering mortgages under $100,000 because the costs of processing them (like appraisals and paperwork) eat up too much of their profit. This bill lets the Department of Housing and Urban Development (HUD) try different ways to make small mortgages more attractive to lenders and more affordable for buyers. The program could include paying lenders bonuses to encourage them to offer these mortgages, reducing fees that HUD normally charges, or giving grants directly to homebuyers to help cover down payments, closing costs, and other upfront expenses. HUD would also conduct outreach to help people know these mortgages are available and provide training to lenders on how to offer them. The pilot program runs for 4 years, during which HUD must track how well it's working, who's using it, and whether it's safe for the government's mortgage insurance fund. This is particularly important for rural areas and other regions where small mortgages could help more people become homeowners.

To authorize the Secretary of Housing and Urban Development, acting through the Federal Housing Commissioner, to establish a pilot program to increase access to small-dollar mortgages, and for other purposes.