Nationwide — President Trump has proposed a 50-year mortgage program aimed at helping young Americans afford homes amid record-high housing prices. The plan could lower monthly payments but faces legal barriers and divided opinions from lawmakers and housing experts.
Trump announced the idea on Truth Social, saying the long-term loan could make homeownership more achievable for younger buyers, according to ABC News. Federal Housing Director Bill Pulte confirmed on X that his agency is already working on the proposal, calling it “a complete game changer.”
Pulte explained that extending mortgage terms to 50 years would reduce monthly payments and make housing more accessible. Based on Fannie Mae’s mortgage calculator, a $300,000 home with a 5% interest rate and 5% down payment would cost about $2,254 per month on a 15-year loan, $1,530 on a 30-year loan, and $1,294 on a 50-year plan.
However, current federal law under the Dodd-Frank Act does not allow 40- or 50-year government-backed mortgages, meaning Trump would need a workaround to make it happen. The White House said official policy changes will be announced if the plan moves forward.
Some Republicans criticized the proposal. Rep. Marjorie Taylor Greene warned it could trap buyers in lifelong debt, saying people would “die before they ever pay off their home.” Rep. Thomas Massie also rejected the idea, comparing it to a system where “you will own nothing and you will like it.”
In contrast, real estate leaders praised the potential benefits. Opendoor CEO Kaz Nejatian described it as “the most pro-homeowner government policy of the last two decades.”
The proposal comes as housing costs hit record highs. Data from Redfin shows that U.S. homebuyers now spend about 39% of their income on mortgage payments. The average buyer needs to earn roughly $112,000 annually to afford a median-priced home.
The Federal Housing Agency has yet to release an official statement regarding Trump’s 50-year mortgage proposal.