Small-dollar mortgages are not as risky as most lenders think 

The purchase of a single-family home worth $70,000 or less is rarely financed by a mortgage, and while there are a number of reasons why, one major factor is their perceived risk. A recent analysis by the Urban Institute examined the risk associated with small-dollar mortgages, determining that the perceived risk was “not correct or fair.” And, because many lenders shy away from offering financing on lower-valued properties, researchers said many creditworthy Americans are shut out of homeownership in low-cost or distressed communities.