This paper considers why most households in Latin America and the Caribbean remain unserved by traditional housing finance systems and how micro-finance potentially offers a key to help the low/moderate-income majority meet their shelter needs. The characteristics of micro-finance include small loan size for incremental upgrading of an existing dwelling or a new core unit, short repayment period, small or no subsidy, creative underwriting adapted to the conditions and prospects faced by low/moderate-income, technical assistance in documentation and building, and - sometimes - alternate forms of title as collateral. The article presents the work of the Bolivian NGO PROA as a successful case of micro-finance and draws lessons about the possible expansion of micro-finance in Africa, Asia and Latin America.