In some cases, the state underwrites loans from conventional lenders such as banks.

But even conventional lenders seem to be increasingly willing to offer "subprime" borrowers an understanding ear.

Financing is to come from conventional lenders and the partners' own equity.

"In 15 years, we've only had to write off $58,000, or 1.3 percent, which I think makes us the envy of any conventional lender."

"We can be more flexible than conventional lenders," he said.

It is no more onerous, he insisted, than those used by conventional lenders.

Not to family, friends or conventional financial lenders.

But if the seller is in the second lien position, meaning behind the conventional lender, the risks can be greater.

"So start with the most conventional lenders you can think of."

She agreed with one contention of the Chicago group: that the department could do more to push conventional lenders to lend to minorities.