A social media post grabbed the attention of homebuyers on Saturday. President Donald Trump proposed a 50-year mortgage on Truth Social.
A Truth Social post showed President Franklin Delano Roosevelt and Trump side by side. Above Roosevelt: “30-Year Mortgage,” while the text above Trump reads “50-Year Mortgage.”
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The Federal Housing Finance Agency (FHFA) Director Bill Pulte confirmed the possibility on X, writing, “Thanks to President Trump, we are indeed working on The 50 year Mortgage – a complete game changer.” The White House press office has yet to comment.
This isn’t the first move by the president towards affordable housing. On Inauguration Day, he signed an executive order for emergency price relief.
Is a 50-year mortgage possible?
In order to allow for a 50-year mortgage, Congress must repeal the Dodd-Frank Wall Street Consumer Protection Act. This law went into effect following the housing collapse of 2008.
The act includes the Qualified Mortgage rule, which does not allow for a 50-year mortgage. The mortgage is possible, but experts say it will be non-qualified. Those typically come with a higher rate.
“I understand that we have housing affordability challenges in America, but subsidizing more demand from 30- to 50-year mortgages is not the policy we want to take now,” Logan Mohtashami, an analyst with HousingWire, said. “Housing has to balance itself out through slowing home-price growth and wages increasing — as it has for many decades. To add another subsidization to the market just prevents that healing process from occurring, which also prevents less equity build out as well. So I am not a fan of any increasing in the amortization, the 30-year fixed is perfectly fine as is.”
Mohtashami added, “a 50-year mortgage is currently illegal under the qualified mortgage law, so that would have to change as well.”
