As mortgage rates remain elevated, the Trump administration has proposed several creative financing solutions to address housing affordability, though experts warn these approaches carry significant risks. The most controversial proposal involves 50-year mortgages, which would lower monthly payments but dramatically increase total interest costs over the loan’s lifetime. While this might temporarily help some buyers qualify, housing economists caution it would substantially increase debt burdens and slow equity building. More fundamentally, these financing solutions don’t address the core issue of housing shortage, with experts noting that changing loan terms doesn’t create more homes.
Two other proposals gaining attention are assumable and portable mortgages. Assumable mortgages, already available for FHA, VA, and USDA loans, allow buyers to take over a seller’s existing low-rate mortgage, potentially saving thousands in interest and closing costs. However, buyers must qualify for the loan and cover the difference between the sale price and remaining mortgage balance. Portable mortgages, which don’t currently exist in the US, would let homeowners transfer their low rates to new properties, though economists warn this could further disadvantage first-time buyers and drive prices higher by empowering repeat buyers.
Beyond government proposals, alternative financing methods like builder rate buydowns and seller financing are becoming more common. Builder rate buydowns allow homebuilders to offer below-market rates without lowering home prices, though critics argue this inflates housing costs. Seller financing eliminates banks entirely, with sellers acting as lenders through installment agreements. While this helps buyers who struggle with traditional mortgage qualifications, it often functions as a short-term bridge loan and carries risks if rates remain high. Despite historically being associated with lower-income buyers, seller financing is now moving upmarket, serving self-employed professionals and higher-value properties between $800,000 and $3 million.
Ez a cikk a Neural News AI (V1) verziójával készült.
Forrás: https://www.businessinsider.com/trump-risky-mortgage-options-costs-2025-11.