Housing is the third most important necessity of a human being. Every human being needs a housing unit to live in. Recently, with globalization and urbanization, the demand for housing has increased manifold, whereas the supply has remained the same. Similarly, in Pakistan, the value of land and buildings in urban areas increased exponentially. The low-income class could not afford a housing unit as they did not have the resources to buy or construct a housing unit at once. With new trends, low-income people would buy a piece of land on the urban periphery and construct housing units in increments. The availability of funds was the key factor in this approach. With the availability of microfinance services in the market, the availability of funds has increased for low-income groups. The research aims to study the difference between the working of different financing institutes and banks and to formulate recommendations based on the collected data.