Trump Administration Eyes 50-Year Mortgage Plan Amid Housing Crisis — But Not Everyone's on Board

The Federal Housing Finance Agency (FHFA), led by director Bill Pulte, confirmed that United States President Donald Trump's administration is actively working on a proposal to offer home buyers mortgages with repayment terms of up to 50 years.

Pulte described the plan as 'a complete game changer' in a post on X.

The proposal comes after Trump shared a post on Truth Social, comparing his image to that of former president Franklin D. Roosevelt, referencing the latter's era when the 30-year mortgage standard gained prominence.

The move to extend terms to 50 years aims to alleviate monthly payment burdens for younger buyers facing a challenging affordability market.

Under the existing laws, particularly the Dodd-Frank Wall Street Reform and Consumer Protection Act along with its related regulations, mortgages that extend beyond a 30-year term typically aren't considered as 'qualified mortgages.'

The Qualified Mortgage (QM) rule imposes a limit on amortisation periods, setting them at a maximum of 30 years, along with various other restrictions. To implement the plan would likely require regulatory change or legislative action.

Homeowners Struggle Amid Rising Costs

The movement towards longer-term mortgages emerges amid a significant crisis in housing affordability across the US. As home prices remain high and interest rates continue to rise, numerous households are experiencing challenges with loan servicing.

According to data from consumer website Redfin, it has been reported that the median household is spending about 30% of their monthly income on mortgage payments. Added to this, searches for 'help with mortgage' have reached their highest level since 2009, signalling widespread concern among potential and current homeowners.

Longer amortisation periods can lower monthly payments, but they also raise important questions. Borrowers accumulate equity at a slower pace, might incur considerably higher interest throughout the loan's duration, and find themselves in debt for an extended period.

Experts warn that merely prolonging repayment terms fails to tackle the fundamental issues behind affordability difficulties including insufficient housing supply, zoning limitations, and stagnant wage growth. Additionally, non-QM loans often come with increased expenses and associated risks.

Long-Term Financial Burden for Households

The proposal for a 50-year mortgage has sparked widespread criticism from US lawmakers, financial experts, and social media users, many of whom argue that the policy would deepen household debt rather than resolve the housing affordability crisis.

Representative Marjorie Taylor Greene was among the first to voice her opposition on X. She argued that extending mortgage terms to 50 years would primarily benefit banks, lenders, and property developers, while ordinary Americans would be burdened with long-term interest payments and limited chances of attaining full home ownership. 'In debt forever, in debt for life,' she wrote.

Greene urged the administration to address corporate dominance in the housing market, noting that investment firms and asset managers buying up single family homes have distorted prices and squeezed out first-time buyers.

The politician further proposed removing capital gains taxes on the sale of primary residences. 'It really will help seniors sell their houses and keep their equity, which also in turn gives them money they need and that gets put back in the economy,' Greene added.

Conservative political strategist Joey Mannarino shared similar sentiments, calling the 50-year mortgage idea 'horrible.' He suggested stricter limits on investment giants such as BlackRock purchasing residential properties.

Other commentators, including financial analysts and individual investors, warned that the plan could create what they described as a 'lifetime debt trap,' where borrowers pay double the interest for the same property while delaying wealth accumulation.

Filmmaker and political commentator Robby Starbuck also posted on X, stressing that meaningful affordability would only come through policies that promote home building and encourage fairer lending practices.

Overall, critics see the 50-year mortgage as a short-term fix that risks prolonging financial strain for generations of homeowners, rather than addressing the systemic issues driving high housing costs.