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Yes, you can get a mortgage under $50,000 or under $100,000. However, few lenders want to make small mortgage loans, and they cost more per dollar borrowed, because a lender’s costs to make and service a loan are mostly fixed. Start with credit unions and community banks, FHA or USDA lenders, and nonprofit or CDFI lenders.
| Loan size | How easy it is (rough guide) | Where to start |
|---|---|---|
| Under $50,000 | Hardest. Many lenders will decline. | Credit unions, community banks, FHA lenders, CDFIs |
| $50,000–$100,000 | Harder. Fewer lenders, and fees take a bigger share. | The same, plus USDA lenders in eligible rural areas |
| Over $100,000 | Most lenders will quote. | Any lender. Compare at least three offers. |
If you are still looking for a home, the guide to houses under $50,000 covers where they are. This page covers the loan.
Why small mortgage loans are hard to find
No law defines a small mortgage. Instead, lenders and researchers use a rule of thumb, usually $100,000 and sometimes $50,000. For example, a Realtor.com report from October 2026 defines small mortgages as loans of $100,000 or less.
Fixed costs, smaller income
Underwriting, processing, compliance and servicing cost about the same on a $60,000 loan as on a $300,000 loan. Interest and fee income, however, grows with the balance. As a result, lenders tend to see small mortgages as unprofitable, according to the Realtor.com report.
In a hypothetical example, a 1% origination fee earns $600 on a $60,000 loan but $3,000 on a $300,000 loan, even though both files take about the same work.
Small loans are a shrinking share
Loans of $100,000 or less made up more than 12% of home loans in 2013 and 2014, Realtor.com found. By contrast, they were under 3% of loans in 2025 and so far in 2026. The share was highest in rural ZIP codes, at 7.7% in 2025, compared with 2.4% in urban and 2.3% in suburban ZIP codes. The same report found that small-mortgage borrowers have paid higher rates than buyers overall.
Federal fee caps bite harder on small loans
Regulation Z also limits the upfront points and fees on a Qualified Mortgage (QM), a loan that meets the federal ability-to-repay rules. For 2026, the cap under 12 CFR 1026.43(e)(3) is 3% for loans of $137,958 or more. It is $4,139 for loans from $82,775 up to $137,958, and 5% for loans from $27,592 up to $82,775. So a $60,000 QM can carry up to $3,000 in points and fees, while a $300,000 QM can carry up to $9,000.
Above 5% in points and fees (for loans of $27,592 or more in 2026), a loan also becomes a high-cost mortgage under 12 CFR 1026.32. Lenders may make loans that are not QMs, the CFPB says, but some make only QMs.
What is the smallest mortgage you can get?
The federal loan programs set no minimum mortgage loan amount, as far as their rules show. Any floor you hear about comes from the lender.
| Program | Minimum loan amount in the rules | What still limits a small loan |
|---|---|---|
| FHA | None in HUD Handbook 4000.1. A federal rule bars FHA lenders from requiring one. | The home must meet FHA property requirements. |
| USDA guaranteed | None in Handbook HB-1-3555 | Eligible rural area and household income limits |
| VA | None found in VA Pamphlet 26-7 | VA minimum property requirements (Chapter 12) |
| Conventional | Set by each lender | Lender minimums and fees |
The FHA rule is worth knowing. Under 24 CFR 203.18d, a lender may not require that an FHA-insured mortgage exceed a minimum amount the lender sets. Still, the rule does not make every lender offer FHA loans, and the house must pass the FHA appraisal.
In practice, the smallest mortgage you can get is the smallest one a nearby lender will close. Veterans can also ask about VA home loans. For a conventional loan, ask each lender for its minimum first.
Where to get a mortgage under $100,000
Credit unions and community banks
A credit union is a not-for-profit financial institution owned by its members, according to the National Credit Union Administration (NCUA). Some credit unions and community banks keep loans on their own books (portfolio lending) instead of selling them. Because of that, they may set their own rules for small home loans.
If you searched for small mortgage lenders, these small lenders are the place to start. Ask your own bank or credit union first, then use the NCUA credit union locator.
FHA lenders
FHA loans need a down payment of at least 3.5% of the property’s adjusted value (HUD 4000.1, II.A.2.c). The upfront mortgage insurance premium (MIP) is 1.75% of the base loan. Annual MIP is 0.55% for a term over 15 years when the base loan is $726,200 or less and the loan-to-value ratio (LTV) is over 95%, under Mortgagee Letter 2023-05.
A very cheap house can fail the FHA appraisal, though. FHA homes must be “safe, sound, and secure,” and the appraiser must list needed repairs (HUD 4000.1, II.A.3.a). For a fixer, the Limited 203(k) loan allows up to $75,000 in repairs (Mortgagee Letter 2024-13). See FHA loan requirements.
USDA lenders in eligible rural areas
The USDA Single Family Housing Guaranteed Loan Program sets maximums but no minimum loan amount. The loan is capped by your repayment ability and the appraised value, plus a financed guarantee fee (HB-1-3555, section 7.2). In addition, the home must be in a USDA-designated rural area, and household income must fall under the program limit.
The upfront guarantee fee is 1%, and the annual fee is 0.35%. See the USDA home loan guide for eligibility.
State housing agencies, nonprofits and CDFIs
State housing finance agencies, local nonprofits and community development financial institutions (CDFIs) lend with a community mission. The CDFI Fund certifies CDFIs, and they operate in all 50 states, Washington, D.C., Guam and Puerto Rico. Some of these lenders also offer down payment assistance programs or homebuyer education.
Manufactured home and land loans
A manufactured home on rented land is usually financed with a chattel loan (a personal property loan), not a mortgage. The CFPB says land ownership plays a key role in how the home is titled, and chattel borrowers pay higher rates. On land you own, the home can be titled as real estate and financed with a mortgage. FHA’s Title I program also insures manufactured home loans, including chattel loans (HUD 4000.1, II.E). See FHA manufactured home loans.
For vacant land, see land loans versus home mortgages.
Seller financing and contract for deed
With seller financing, the seller acts as the lender. A contract for deed is one form: you pay the seller in installments, and the seller keeps legal title until you finish. The CFPB warns that most of these contracts carry risks, including quick eviction after a missed payment. Have an attorney or a HUD-approved housing counselor review any contract, and compare seller financing and a lender mortgage.
A loan from family
If a relative lends you money, write the loan down with the amount, rate and payment schedule. Your mortgage lender will ask whether the money is a gift or a loan. An FHA gift letter must state that no repayment is required (HUD 4000.1, II.A.4.d), so money you must repay is not a gift. See the rules for down payment gifts.
Cash plus a smaller loan
Paying all cash avoids loan fees but ties up savings you may need for repairs. See whether paying cash for a home makes sense. If you already own a home with equity, a home equity loan or HELOC on that home can pay for a low-priced second purchase, but your current home secures the debt.
What to do when a lender says no
One lender’s “no” is not the final answer. Try these steps:
- Ask who will. Loan officers often know which local lenders take small files.
- Ask about the fees. Find out which fees can be reduced, covered by a lender credit, or financed where the program allows.
- Weigh a larger down payment. It won’t shrink fixed fees, but a lower LTV can lower mortgage insurance. For example, FHA annual MIP drops to 0.50% at 95% LTV or less.
- Raise the FHA rule. If an FHA lender names a minimum loan amount, ask which rule it is applying.
- Call a housing counselor. A HUD-approved counselor can point you to local programs.
Costs of small mortgage loans and how to compare offers
Many closing costs, such as the appraisal and title work, don’t shrink with the loan, so fees take a bigger share of small mortgage loans. Each loan below carries a hypothetical $4,000 in closing costs.
| Loan amount | Closing costs (hypothetical) | Costs as a share of the loan |
|---|---|---|
| $50,000 | $4,000 | 8.0% |
| $100,000 | $4,000 | 4.0% |
| $300,000 | $4,000 | 1.3% |
Program fees add to that. Say a buyer uses an FHA loan on a $90,000 home with 3.5% down, so the base loan is $86,850. The upfront MIP of 1.75% is about $1,520. Annual MIP at 0.55% is about $478 in the first year, or about $40 a month. Those figures leave out principal, interest, property taxes and homeowners insurance.
To compare offers, apply with two or three lenders in the same week. Each must send a Loan Estimate within three business days of your application (12 CFR 1026.19(e)). Then compare the origination charges, the annual percentage rate (APR) and the cash to close. The closing costs guide explains each line.
Small mortgage loans FAQ
Can you get a mortgage for $50,000?
Yes, though fewer lenders make a mortgage under $50,000. Start with credit unions, community banks, FHA lenders and CDFIs, and expect fees to take a larger share.
Can you get a mortgage for less than $100,000?
Yes. Loans of $100,000 or less were under 3% of home loans in 2025, according to Realtor.com, and most common in rural areas. Ask local, FHA and USDA lenders.
What is the smallest mortgage you can get?
It depends on the lender, since no federal program sets a floor. Under 24 CFR 203.18d, FHA lenders may not require a minimum loan amount.
Is there a minimum mortgage loan amount?
Not in FHA, USDA or VA rules, as far as they show. Many conventional lenders set their own, so ask before you pay an application fee.
Can I use a personal loan to buy a house?
You can, but use caution. A personal loan has no lien on the house, and its rate and term can make it cost more than a mortgage. FHA does not accept unsecured signature loans as down payment funds (HUD 4000.1, II.A.4.d), and other lenders may also limit borrowed down payment money.
Who offers small mortgage loans?
Credit unions, community banks, FHA and USDA lenders, state housing agencies and CDFIs are the most likely to say yes.
Next steps for small mortgage loans
Small mortgage loans are harder to find, but the federal programs set no floor, and local lenders may say yes. Because fees take a larger share of a small loan, compare Loan Estimates line by line.
Next, ask two or three lenders that make small home loans for their minimum. Then get a mortgage pre-approval before you make an offer.
