Credit Scores, 50-Year Mortgages, and Making the Right Move in Triad Real Estate

A Changing Game 

We've helped countless first time homebuyers with a similar start to their stories. Despite steady jobs and savings, one thing nearly derailed their dream – a credit score just shy of 620. They’re not alone. In fact, the median age of a first-time homebuyer nationally has jumped to 40 years old (up from 33 just five years ago)[1], as many younger buyers are sidelined by strict credit requirements and high costs. But big changes are brewing: Fannie Mae is dropping its 620 credit score rule, and there’s talk of 50-year mortgages on the horizon. What do these shifts mean for you and the Piedmont Triad real estate market? Let’s dive in.

Credit Scores: A New Chapter in 2025

For decades, a FICO score of 620 was the magic number for getting a conventional mortgage. This goes back to the 1990s, when Fannie Mae and Freddie Mac first adopted FICO credit scores in underwriting[2]. Lenders drew a line between “prime” and “subprime” borrowers around that range. In practical terms, if your middle score was below 620, you’d likely be steered toward FHA loans or be denied outright for a conventional loan.

Now that’s changing.

Fannie Mae announced that as of November 16, 2025, it will no longer require a 620 minimum credit score for loans run through its Desktop Underwriter system[3]. In other words, there won’t be a hard cutoff score anymore – a monumental shift aimed at expanding access to homeownership[4]. (Freddie Mac made a similar move earlier, and Fannie is following suit[5].) This could especially help “near-miss” borrowers – folks with steady income or solid savings but credit scores just under the old 620 cutoff[6]. Instead of getting automatically disqualified, these buyers might now get approved if other aspects of their profile are strong.

Will lenders just lend to anyone now?

Not exactly. Fannie Mae isn’t throwing common sense out the window. Its system will still evaluate your overall risk – factoring in your debt-to-income ratio, the size of your down payment, the type of property, and your cash reserves[7]. In fact, the change is partly about using better credit models (Fannie and Freddie plan to allow new credit scoring methods beyond just FICO) and reducing reliance on one number. So while more people will get a shot, you’ll still need to prove you can repay the loan. Think of it like a holistic review instead of a single test score deciding your fate.

Local angle – here in the Triad

This update could open doors for more buyers in the Piedmont Triad. Our region’s average credit scores are around the upper 600s[8], roughly on par with national averages. But plenty of Triad residents – from recent college grads in Greensboro to self-employed entrepreneurs in High Point – have credit in the 500s or low 600s. Previously, many of them felt stuck renting. Now, if they have decent incomes and some savings, they might qualify for a home without hitting 620. That means more people looking at Greensboro homes for sale or finally able to buy in Winston-Salem.

At the same time, lenders will likely be cautious. They might request proof of on-time rent payments, utility bills, or other non-traditional credit if you don’t have a strong credit file. And interest rates or mortgage insurance could be a bit higher for lower-score borrowers. The ripple effect, though, is positive: we could see a few more first-time buyers enter the market in neighborhoods across the Triad. (Imagine turning more renters at Hanes Mall area apartments into homeowners in Ardmore or Lindley Park!)[9] For sellers, a larger buyer pool is good news – your potential market just broadened.

Rethinking Mortgage Length: From 30 Years to 50?

Ever since the mid-20th century, the 30-year fixed-rate mortgage has been the gold standard of U.S. home loans. It hasn’t actually been around forever – in fact, Congress didn’t fully authorize 30-year mortgages for all homes until the late 1940s[10]. Before that, your grandparents might have taken out 5- or 10-year loans with big balloon payments at the end. The New Deal reforms changed all that, introducing long-term, fixed payments that made homeownership affordable to the masses. By stretching loans to 20 and then 30 years, monthly payments dropped and homeownership boomed (U.S. homeownership jumped from ~44% in 1940 to ~62% by 1960)[11]. The 30-year mortgage became a cornerstone of the American dream – including here in North Carolina, where it allowed many families to buy homes in Greensboro, Winston-Salem, and beyond with manageable payments.

Now enter the idea of a 50-year mortgage.

Yes, you read that right – 50 years. Recently, President Donald Trump floated a proposal to offer 50-year home loans as a way to tackle the affordability crisis for buyers facing today’s high prices and 7%+ interest rates[12][13]. His housing advisors, including new FHFA Director Bill Pulte, called the idea a potential “game changer” for young buyers priced out of the market[14]. The appeal is straightforward: if you can double the length of the loan, you can significantly lower the monthly payment, allowing some buyers to qualify for homes they otherwise couldn’t. It’s like stretching the finance term on a car – your monthly bill shrinks.

But what’s the catch? Total interest cost, for one. Critics were quick to point out that a 50-year mortgage means paying for a house over half a lifetime. One Congresswoman (a Trump ally, no less) warned that with a 50-year term, many people would “die before they ever pay off their home… in debt forever, in debt for life!”[15]. That’s grim, but not entirely off-base. For example, let’s run the numbers: on a $425,000 loan at 6.5% interest, a standard 30-year mortgage would accrue about $542,000 in interest by the time it’s paid off. A 50-year mortgage? Roughly $1,012,000 in interest – that’s an extra $470k paid, just to lower the monthly payment by around $290[16]. In other words, you’d be trading long-term cost for short-term relief.

Short-term vs. long-term ripple effects

In the short term, if 50-year mortgages become available, we might see an uptick in buyers who can suddenly afford a home (or afford more home). It could be a boom for first-time buyers in expensive markets and even here in the Triad. While our home prices are modest compared to, say, California, they’re not immune to rising. (The median sale price in Greensboro is around $277,000, with Winston-Salem close behind at $279,000[17] – both climbing year over year.) A longer loan term could make the monthly payment on a $280k Kernersville home easier to handle, especially for someone early in their career. More qualified buyers means more demand, which could prop up home prices in the Triad real estate market – a short-term win for homeowners and sellers.

However, in the long run, carrying mortgage debt for 50 years changes the game. Equity builds very slowly when most of your payment in those early decades goes to interest. Homeowners would take far longer to truly “own” their property free and clear. It could also affect retirement timelines – you might still have a house payment well into your 70s or 80s. As one local mortgage expert noted, you’re “not saving money… you’re just dragging out the debt.”[18] On the flip side, a 50-year could be used strategically: for instance, get in with the lower payment, then make extra payments as if it were a 30-year loan once your income rises[19]. That way you have breathing room now and still build equity faster – a tactic seasoned investors use with extended-term loans.

Here at Beyond Home Advisors, we help our clients think like investors, and that mindset is key with new ideas like this. An investor will ask: “How do the numbers work out over time? What’s my exit strategy?” We encourage you to do the same. If 50-year mortgages become reality, think beyond that lower monthly payment. Consider your long-term equity and freedom. Maybe it’s a useful tool if you intend to refinance or sell after a few years. Maybe it’s a way to get into a starter home in Oak Ridge now, knowing you’ll upgrade in 5-10 years. The point is to have a plan – don’t just lock in because it sounds affordable today.

What It Means for Triad Buyers, Sellers, and Investors

These shifting trends in credit and mortgages will affect everyone in our market a bit differently. Here’s a quick look at the impact:

• Buyers: More lenient credit score requirements mean more of you can qualify for loans. If your credit score is in the low 600s, you might now get a green light on a conventional mortgage where last year you’d be denied[6]. And if 50-year mortgages roll out, some buyers will find previously unaffordable homes within reach due to lower monthly payments. The key is to still shop around and budget wisely – just because you can get a bigger loan doesn’t mean you should max it out. Focus on the monthly payment and the long-term plan (Will you refinance later? Pay extra toward principal?).
• Sellers: An expanded credit box means a larger pool of buyers could enter the market. That’s good news if you’re listing your home. You might see more showings, including folks who a year ago couldn’t get a mortgage now able to buy. In the Triad, where we already have robust demand (21 of NC’s top 50 zip codes for house sales are in our area[20]), this could keep competition healthy. However, if 50-year loans become common, be aware that buyers could stretch for a higher price – which might push home values up but could also lead to longer-term market volatility. It’s still crucial to price your home realistically and highlight its value; informed buyers (especially those thinking like investors) will be looking closely at what they get for their money.
• Investors: Changes like these often signal where the market is heading. Easier credit access can boost demand for entry-level homes – an opportunity if you’re investing in flips or rentals in up-and-coming Triad neighborhoods. On the flip side, if longer mortgage terms become available, investors might leverage them for lower carrying costs on rental properties. But be cautious: a 50-year mortgage is not about maximizing your ROI; it’s about cash flow management. Smart investors will calculate the total cost of capital. Also, consider that if more owner-occupants can buy (thanks to looser credit or longer terms), rental demand might soften slightly for that segment. As always, have a strategy – whether it’s buy-and-hold with a long-term loan or a quicker value-add flip in a hot area like downtown Greensboro.

3 Ways to Make the Right Move Now

How can you take advantage of these trends (or at least not be caught off guard)? Here are three actionable tips for Triad homebuyers and sellers:

1. Check Your Credit & Explore New Options: Pull your credit score and see where you stand. If it’s below 620, don’t despair – talk to a local lender about the new Fannie Mae guidelines. You may qualify for programs that weren’t open to you before[4]. Also, ask about alternative credit evaluation if you have a thin file (like using rent and utility payment history). On the flip side, if your score is high, you remain a golden borrower – you can still snag better rates or even negotiate on things like private mortgage insurance. Bottom line: make sure you know your numbers and get pre-approved so you can shop with confidence.
2. Think Long-Term (Even with a Longer Loan): If the idea of a 40- or 50-year mortgage comes your way, approach it with eyes wide open. Calculate the total you’d pay over the life of the loan and ask yourself if the trade-off is worth it. One strategy if you must use a 50-year term: treat it like a safety net. You enjoy the lower required payment now, but whenever possible, pay extra towards principal as if it were a 30-year loan. This way, you’ll build equity faster and cut down that payoff timeline. Essentially, you get flexibility and financial progress – the best of both worlds. Remember, making the right move isn’t just about snagging the lowest monthly payment; it’s about maximizing your wealth in the long run.
3. Stay Informed on Market Trends: The Triad housing market is dynamic – inventory, interest rates, and buyer demand are constantly evolving. Keep an eye on local stats: for example, inventory is rising in some Triad neighborhoods (meaning more choices for buyers)[9], and mortgage rates, while high, have been fluctuating. If you’re a buyer, more inventory plus new loan options could make this a great window to purchase before home prices adjust upward. If you’re a seller, highlight how your home can be more affordable thanks to these financing changes (e.g., “Assumable low-rate loan available” or simply noting that more buyers can now qualify to purchase). Above all, educate yourself – and don’t hesitate to lean on a real estate professional for guidance (that’s what we’re here for!).

Ready to Make Your Move?

The mortgage landscape might be shifting, but one thing remains constant: smart decisions and solid guidance will always win the day. At Beyond Home Advisors, we pride ourselves on blending data-driven insight with a personal touch – professional yet conversational, educational and trustworthy. Whether you’re browsing Greensboro homes for sale, contemplating an investment property in High Point, or looking to sell in Kernersville, our experienced team (your local Kernersville Realtors and Triad experts) is here to guide you. We’ll help you think like an investor and craft a strategy that fits your goals, be it taking advantage of new credit-score rules or navigating creative financing options.

If you have questions about what these changes mean for your situation, or you just want to chat about your real estate goals, reach out to us at Beyond Home Advisors. Let’s schedule a personalized strategy session – no pressure, just a friendly conversation about your next steps. We’ve helped folks all across the Piedmont Triad “make the right move,” and we’d love to help you do the same. Your home journey is more than just a transaction; it’s about building a secure and prosperous future. Together, let’s make that future a reality.

(Stay tuned for future posts where we’ll dive deeper into tips for boosting your credit score and clever mortgage strategies – so you’ll be even more prepared to thrive in our evolving market.)


- Landon Stone
landon@beyondhomeadvisors.com