Some areas of the country have homes for sale that don’t cost a fortune. In fact, the median sales price of homes in some areas is quite inexpensive – less than $100,000. But borrowers are having a hard time finding lenders who will finance small mortgages. “It is a problem that we will need to do some creative thinking on how to fix,” says Ellen Seidman, senior fellow at the Urban Institute, the housing finance policy center, in Washington, D.C. She and fellow co-worker Bing Bai, research associate, wrote a blog recently from their research titled, Where have all the small loans gone?

“It’s important to know that this trend happened well before 2014 – when all the new rules and regulations were written,” Seidman adds. Getting a mortgage loan yourloansllc.com/direct-lender-installment-loans/ locations for less than $50,000 has become almost impossible, she explains. From 2004 to 2011, only 3-4 percent of mortgages were for less than $50,000, and the number is even lower for 2014.

But many towns, a substantial amount of homes cost $50,000 or less. Continue reading →