Despite flurry of different mortgage ideas being thrown out, broker has other ideas to help first-time buyers
Mortgage affordability has been at the top of the minds of many in Washington lately, as more potential homebuyers struggle to get into the market.
Those discussions continued on Wednesday at the White House. According to Reuters, several banking executives met with President Donald Trump to discuss rising living costs and finding ways to expand home ownership.
Wednesday’s dinner was the latest step in a flurry of suggestions from the administration on mortgages. It started with Trump suggesting 50-year mortgages, which was met largely with skepticism from the broker community.
It followed with a renewed push for assumable mortgages. Finally, Bill Pulte, US director of housing, posted on his X account on Wednesday that, “We are actively evaluating portable mortgages,” or mortgages that would travel with the borrower when they bought a new home.
For borrowers who secured low-rate mortgages during the pandemic, this could break the so-called “golden handcuffs” keeping people out of the market. However, for banks and mortgage companies that make money from mortgage loan churn, they might not be as keen on the idea, according to one broker.
Mark Gelbman, a mortgage advisor with Union Home Mortgage, said that while options like assumable and portable mortgages could help with affordability, he’s not sure lenders will be on board.
“VA and some FHA loans are already assumable,” Gelbman told Mortgage Professional America. “I don’t see other loans going in that direction. Banks make money by originating new loans. As far as portable loans, I know this is used in Europe. Again, while I think that it could be a good idea, it would totally upend how the mortgage industry currently operates and drive down revenues. I doubt the banks and mortgage companies will be a fan.”
Fixing income
Gelbman said many of these mortgage suggestions aren’t addressing the main problem, which is that income does not keep up with the ability to buy homes.
“This move to make mortgage payments lower has merit, but the real problem is income,” Gelbman said. “How is it that the federal minimum wage is still at $7.25? A recent study came out that states that for a single person to be able to live, eat, and pay rent, the minimum annual income needs to be in the $47,000 range. Of course, this will vary depending on what part of the country you live in.”
He also suggested manufactured houses can be a solution for affordable housing, especially for first-time buyers. However, it can sometimes be a challenge to get neighborhoods to accept this type of housing, as it has historically been viewed negatively.
“The use of new manufactured homes is a good way to lower the entrance price point,” he said. “But the widespread use butts up against zoning restrictions in most cities. When you mention manufactured homes, all you hear is, ‘Not in my backyard.’ We are not talking about your grandfather's mobile homes, either.”
Condos as affordable housing
In many areas, condominiums are the affordable housing option for locals. However, deferred maintenance and limited lending options have kept many borrowers from choosing that option.
“Since FHA changed its approval process some years ago and went from a permanent approval, like VA, to an approval that must be updated every few years, there are fewer and fewer FHA-approved condos, where first-time buyers may have a better chance of ownership,” Gelbman said.
As the discussion continues on improving condo lending with Fannie Mae and Freddie Mac, the mortgage community is debating the merits of the 50-year mortgage, which sparked the latest affordability debate.
Kevin Hassett revisits 50-year mortgages. Gret Uttal of Cyberlink Software Solutions calls it a stepping stone, Deborah Lee Switts of Good Friend Mortgage proposes AI recasting, and Deb Veilleux of Starlink Realty, Inc limits it to refinance use.https://t.co/grcuG4L3m0
— Mortgage Professional America Magazine (@MPAMagazineUS) November 13, 2025
One possible solution discussed by some in the industry is a combination of two ideas: a 50-year mortgage and assumable mortgages. Michael A. Harris, president and CEO of United Mortgage Corporation of America, suggested this type of mortgage could help keep homes in a family for generations.
“This would need to be set up with an assumable estate ability, ideal for a family legacy,” Harris told Mortgage Professional America. “Include a recast ability when money is available for an alternative from just refinancing. Include a financial GPS to navigate decisions when looking at interest rate versus interest volume abilities to retire the debt sooner.”
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