From extended loan terms to more flexible credit requirements, the mortgage landscape is shifting with new options for homebuyers.

What’s up with all these new mortgage changes? Mortgage updates have been popping up everywhere lately, from talk about 50-year loans to portable mortgages and Fannie Mae’s credit score news. Today, I’m breaking it all down so you can understand what these updates really mean for buyers, sellers, and anyone navigating today’s housing market here in Phoenix.

Here’s what you need to know:

1. 50-year mortgages. When I talk to people about 50-year mortgages, I explain that they can make sense in fast-growing areas like Phoenix. In places where home values and population keep rising, a longer loan term can help buyers qualify and keep monthly payments steady. Even though the loan lasts 50 years, making extra payments can pay it off faster, closer to a 30-year schedule.

However, in slower or less consistent markets, this type of loan can feel just like renting from the bank while handling all the responsibilities of homeownership, such as repairs. These loans also mean you pay more interest over time. By letting buyers afford bigger homes, prices may go up temporarily. It’s a way to get into the market now, but it doesn’t really solve long-term affordability challenges.

“Fannie Mae is dropping its 620 credit score requirement, opening homeownership to more buyers.”

2. Fannie Mae removes the minimum credit score. Another major update is that Fannie Mae is eliminating its 620 minimum credit score requirement starting November 16, 2025. Lenders will still have their own rules, but they’ll focus more on income, debt-to-income ratio, and other financial factors. This change opens the door for buyers with lower credit scores but strong finances, making homeownership more accessible.

3. Portable mortgages. There’s also talk about portable mortgages, which aren’t available here yet but are common in Canada and Europe. With this type of loan, you can take your current mortgage and interest rate with you when you move. For anyone holding a low rate, it makes moving easier and lets you keep the payment you worked hard to secure.

Mortgage rules are shifting quickly, and staying informed is the best way to make smart decisions. If you want help figuring out which path fits your goals, reach out anytime at 480-267-9368 or send an email to Office@GoodCompanyRE.com. Our team at Good Company Real Estate can walk you through your options.