A 40-year mortgage should be the new American standard for first-time homebuyers

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John Hope Bryant, previously at the helm of the largest minority-controlled single-family rental home company in the U.S. and an advisor to two presidential administrations, now leads Operation HOPE. This nonprofit seeks to broaden economic opportunities for all. Bryant is now advocating for the introduction of 40-year mortgages.This idea struck him during an interview, and while he’s not the first to propose it, he told Fortune he’s the first to frame it this way. His plan for first-time homebuyers involves a 40-year mortgage with a subsidized interest rate ranging from 3.5% to 4.5%. Applicants would need to complete financial literacy training, with subsidies capped at $350,000 in rural areas and $1 million in urban areas. Bryant emphasizes there’s no age limit; even a 45-year-old renting their whole life could benefit from this plan to buy a first home and build generational wealth.Bryant argues against age discrimination in home buying, saying, “Why exclude someone just because they’re older? That’s absurd. Let them buy a house like a 20-year-old, and who knows? They might even live to 100.”To Bryant, a 40-year mortgage represents a solution to the issue of high home prices and mortgage rates. He views the 30-year mortgage as a product of its time, originating from the Great Depression and needing an update. The current housing crisis, marked by elevated home prices and insufficient supply due to past underbuilding and policy failures, is exacerbated by the lock-in effect—when rising mortgage rates deter people from selling their homes.This lock-in effect has contributed to a decline in existing-home sales to their lowest levels in nearly three decades, while also driving up existing-home values. Bryant acknowledges that a 40-year mortgage alone won’t solve the problem. “It’s a temporary fix,” he says. “The real solution requires increasing long-term inventory.”Although inventory has risen this year compared to last, it remains insufficient to resolve the housing shortage. Therefore, while the 40-year mortgage could help, it must be paired with efforts to boost housing supply.