Who Offers A 50 Year Mortgage: The Top 10

Ever wondered, “Who Offers A 50 Year Mortgage?” in today’s housing market? As home prices continue to climb and monthly payments stretch budgets thin, extended loan terms like 50-year mortgages are grabbing attention. In this post, we’ll explore the top U.S. lenders making these ultra-long mortgages possible—and why they may (or may not) be the right fit for your financial goals.

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Why 50-Year Mortgages Are Gaining Interest

Before we dive into the top 10 lenders, it helps to understand why this trend is gaining momentum in the U.S.

The Push For Affordability

In markets like California, New York, and parts of Texas, where home prices have skyrocketed, a 50-year mortgage can make a home seem more “affordable” on a monthly basis—even if you end up paying more in the long run.

More Flexibility, But At What Cost?

Stretching the loan term to 50 years reduces the monthly burden, freeing up cash flow. But there’s a trade-off: slower equity build-up and more interest paid over time.

Who Offers A 50 Year Mortgage: The Top 10

Let’s take a closer look at lenders and financial institutions that offer or facilitate access to 50-year mortgages in the U.S.

1. New American Funding

New American Funding stands out for its custom loan programs, and some of their extended-term options have included 50-year loans. These are generally available as part of their non-QM offerings. They’re ideal for self-employed buyers or those who don’t meet conventional underwriting standards.

2. LoanStream Mortgage

LoanStream is one of the few lenders openly offering 50-year fixed and interest-only loans as part of its AltDoc and non-QM loan suite. These are best suited for borrowers looking for a flexible, lower-payment structure.

3. Carrington Mortgage Services

Carrington is known for helping borrowers with less-than-perfect credit. Their flexible underwriting criteria include extended-term loans like the 50-year option. These are often used to make high-cost homes more accessible.

4. Angel Oak Mortgage Solutions

Angel Oak specializes in non-traditional lending, offering 50-year mortgages through customized non-QM programs. These can be particularly useful for investors or buyers with complex income scenarios.

5. The Money Source (TMS)

TMS partners with brokers and offers niche products—including 40- and 50-year amortization options—as part of their expanded mortgage toolkit. They target real estate professionals and investors looking for creative financing.

6. Acra Lending

Acra Lending, formerly known as Citadel Servicing, is another key player in the non-QM space offering 50-year mortgage solutions. These loans are often tailored for high-income earners or entrepreneurs with variable income.

7. Sprout Mortgage

Though currently scaling operations, Sprout previously offered 50-year mortgages under its non-QM programs. When available, they’re offered through wholesale and correspondent channels.

8. Athas Capital Group

Athas Capital Group offers 50-year terms primarily on their investment property and non-owner-occupied loan products. They’re popular among house flippers and long-term rental investors.

9. FGMC (First Guaranty Mortgage Corporation)

FGMC, through its proprietary Maverick Solutions, has experimented with 50-year loan offerings under specialized terms. These options usually come with interest-only periods and are part of a larger non-QM product lineup.

10. Portfolio Lenders & Credit Unions

Smaller portfolio lenders and select credit unions may offer 50-year mortgages upon request. These are not usually advertised but can be accessed by high-credit borrowers looking for specific term flexibility.

Pros And Cons Of A 50-Year Mortgage

It’s essential to weigh the upsides and downsides of such a long commitment.

Pros

• Lower monthly payments
• Easier home qualification
• Better short-term cash flow
• Can help buyers afford high-cost markets

Cons

• Higher total interest paid
• Slower equity buildup
• Limited lender availability
• May come with stricter qualifications

Who Should Consider A 50-Year Mortgage?

This loan isn’t for everyone. However, it might suit:

• First-time buyers priced out of 30-year terms
• Investors seeking low monthly obligations
• High-income earners needing flexibility

What To Watch Out For

Extended-term mortgages can be appealing but look closely at:

• Prepayment penalties
• Interest-only periods
• Balloon payments
• Long-term interest costs

How To Qualify For A 50-Year Mortgage

Documentation Is Key

Because these loans often fall under non-QM or portfolio lending, lenders typically request:

• Income documentation (or bank statements)
• Strong credit history
• Proof of reserves or assets

Non-W2 Earners Welcome

If you’re self-employed, retired, or a freelancer, these loans often cater to your financial structure better than conventional options.

FAQs About 50-Year Mortgages

Here are 50 common questions people ask about 50-year mortgages—and clear, updated answers for each.

What Is A 50-Year Mortgage?

A 50-year mortgage is a home loan with a 50-year repayment period, offering lower monthly payments due to the extended term.

Are 50-Year Mortgages Legal In The U.S.?

Yes, they are legal but not widely offered. They’re typically available through non-QM or portfolio lenders.

Who Typically Offers A 50-Year Mortgage?

Non-QM lenders, portfolio lenders, and some credit unions offer 50-year mortgages, not traditional banks.

Can You Get A 50-Year Mortgage On A Primary Residence?

Yes, but approval depends on the lender’s guidelines and your income qualifications.

Do 50-Year Mortgages Come With Fixed Or Adjustable Rates?

They can be fixed or adjustable, though many are fixed or have interest-only periods initially.

Is A 50-Year Mortgage A Good Idea?

It depends on your financial goals. They offer lower monthly payments but more interest over time.

Can I Pay Off A 50-Year Mortgage Early?

Yes, but check for prepayment penalties in your loan agreement before doing so.

What Are The Interest Rates Like On 50-Year Mortgages?

Rates are typically higher than conventional loans because of increased lender risk.

Are 50-Year Mortgages Available For Investment Properties?

Yes, some lenders offer them specifically for investment or rental properties.

Can I Refinance A 50-Year Mortgage?

Yes, many borrowers eventually refinance into shorter terms when their financial situation improves.

Do You Need A High Credit Score For A 50-Year Mortgage?

Most lenders require a solid credit score, often 660+, though some accept lower scores.

Can First-Time Homebuyers Qualify?

Yes, especially if they meet the lender’s income and credit requirements.

Is A 50-Year Loan Considered A Non-QM Mortgage?

In most cases, yes. These loans typically fall outside traditional underwriting standards.

Are Balloon Payments Common In 50-Year Mortgages?

Some lenders include balloon payments, especially for investor-focused loans. Always ask.

What Happens If I Default On A 50-Year Loan?

Default rules are similar to other mortgages—you could face foreclosure if payments are missed.

Are These Loans Backed By Fannie Mae Or Freddie Mac?

No, 50-year mortgages are not backed by government-sponsored enterprises.

How Much Can You Borrow With A 50-Year Mortgage?

It depends on the lender, but amounts can be quite high, especially in expensive housing markets.

Do They Come With PMI?

If your down payment is under 20%, you may be required to pay private mortgage insurance.

Are 50-Year Mortgages Popular In California?

Yes, California has a higher concentration of these loans due to housing costs.

What’s The Difference Between A 50-Year And 40-Year Mortgage?

The 50-year term is longer and typically comes with lower monthly payments, but more interest.

Can I Get One From A Credit Union?

Yes, though you’ll often need to be a member or meet eligibility requirements.

Are They Available For New Construction?

Yes, if the lender allows it. You may need builder documentation or permits.

What Documents Do I Need To Apply?

You’ll typically need tax returns, pay stubs or bank statements, ID, and credit history.

Can I Use A 50-Year Loan For A Second Home?

It depends on the lender, but some allow second homes or vacation properties.

Are They Offered Nationwide?

Availability varies. States with high housing costs tend to have more options.

Will I Build Equity Slower?

Yes, you’ll build equity much more slowly compared to a 30-year mortgage.

Is The Approval Process Longer?

It’s usually similar to conventional loans but may involve more underwriting steps.

Can I Use A Co-Signer?

Yes, a co-signer may help improve your approval chances.

What Down Payment Is Required?

It varies by lender. Some accept as low as 10%, others may require more.

Are There Any Government Programs For 50-Year Mortgages?

No, these loans aren’t part of federal housing programs like FHA or VA.

How Do I Find A Lender That Offers One?

Search for non-QM lenders or speak to a mortgage broker with experience in extended terms.

Can I Convert It To A Shorter Term Later?

Yes, refinancing is a common strategy when finances improve.

Do They Help With Mortgage Qualification?

Yes, the lower monthly payment can help you qualify for more home.

Are They Good For High-Debt Borrowers?

They can be, but lenders still assess your debt-to-income ratio carefully.

Can I Get Pre-Approved For A 50-Year Mortgage?

Yes, many non-QM lenders offer pre-approval. Just make sure they offer 50-year terms.

What Are The Closing Costs?

They’re typically similar to other loans, around 2-5% of the loan amount.

Do I Need To Use A Broker?

Not always, but brokers can help you access lenders who don’t advertise publicly.

Can I Get One With A Variable Income?

Yes, some lenders specialize in self-employed or fluctuating income borrowers.

Do They Require An Appraisal?

Yes, an appraisal is almost always required to confirm property value.

What Is The Monthly Payment On A $500,000 Loan?

It depends on the rate, but it will be significantly lower than with a 30-year loan.

Do I Pay More Interest Over Time?

Yes, total interest paid is much higher compared to shorter loan terms.

Is A 50-Year Mortgage A Risky Move?

It can be if you’re not financially disciplined or if home values drop.

Can I Use Gift Funds For A Down Payment?

Yes, some lenders allow it with documentation showing the source of funds.

What Are The Income Requirements?

These vary, but you’ll need enough stable income to cover the monthly obligations.

Are These Loans Common In Luxury Real Estate?

Yes, they’re sometimes used in high-end deals to manage large payments.

Is The Loan Term Really 50 Years?

Yes, though some lenders include interest-only periods at the start.

What Happens If I Sell The House Early?

You’ll pay off the balance like any other loan, minus any early payoff penalties.

Do These Loans Work For Modular Homes?

Some lenders allow it, depending on property type and construction quality.

Can I Use It For A Fixer-Upper?

Possibly, though rehab or renovation loans may be a better fit.

Are There 50-Year FHA Loans?

No, FHA-insured loans do not extend to 50-year terms.

Conclusion

A 50-year mortgage isn’t for everyone, but it’s a creative option for those needing more flexibility in high-cost housing markets. Whether you’re an investor, self-employed buyer, or just trying to make homeownership work within your budget, understanding “Who Offers A 50 Year Mortgage: The Top 10” gives you a head start. Always compare terms carefully and consult with a trusted mortgage professional before committing.