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Increase the supply of housing in AmericaSection 105 › Proposal

A small-dollar mortgage is defined as $100,000 or less on a home the borrower lives in

To increase the supply of housing in America, and for other purposes, section 105, Sec. 105. Written by .

A small-dollar mortgage is defined as $100,000 or less on a home the borrower lives in

The document says “meansWho acts: CongressHow: statuteSec. 105 in the PDF
What the document says

“(1) has an original principal balance of $100,000 or less; and (2) is secured by a 1- to 4-unit property that is the principal residence of the mortgagor.”

To increase the supply of housing in America, and for other purposes, Sec. 105

The section defines a small-dollar mortgage as a mortgage with an original principal balance of $100,000 or less that is secured by a property of one to four units serving as the borrower's principal residence.

What the document actually says

“(1) has an original principal balance of $100,000 or less; and (2) is secured by a 1- to 4-unit property that is the principal residence of the mortgagor.”

To increase the supply of housing in America, and for other purposes, Sec. 105
That sentence, in plain words

The loan starts at $100,000 or less. The home has one to four units. The borrower lives there most of the time.

What this is about

Principal is the amount borrowed, apart from interest. A principal residence is the home a person mainly lives in. A loan must meet both tests to count.

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