top of page

40 Year Mortgage FHA Loans

The Federal Housing Administration has recently approved a new type of mortgage that may offer relief to homeowners who are struggling to make their monthly payments. The 480-month mortgage, also known as a 40-year mortgage, is designed to help borrowers who cannot achieve a minimum targeted 25 percent reduction in the principal and interest portion of their mortgage payment through FHA's existing 30-year mortgage modification with a partial claim.

can you get a 40 year fha mortgage

The 40-year mortgage will give homeowners an additional 10 years to pay off their mortgages, with the aim of making mortgage payments more manageable. This is because the payments will be spread out over a longer period, resulting in lower monthly payments. However, it's important to note that this will also mean more interest in the long run.

According to, on a $312,000 mortgage at 6.85 percent interest, the monthly payment for 40 years is approximately $100 less than the 30-year loan. However, interest would be close to $170,000 more over the life of the loan. While this may seem like a significant amount, it's worth considering that struggling homeowners may prefer to have a lower monthly payment, even if it means paying more in interest over the long term.

The Federal Housing Administration has stated that this move will also help borrowers avoid default, as they will be paying less per month. The change will go into effect on May 8th, 2023.


  • Lower monthly payments: The 40-year mortgage is designed to make mortgage payments more manageable, which can be helpful for struggling homeowners.

  • Avoid default: By paying less per month, borrowers may be able to avoid defaulting on their mortgage, which can have serious consequences.

  • More time to pay off mortgage: Homeowners will have an additional 10 years to pay off their mortgage, which may be helpful for those who need more time to pay off their loan.


  • More interest in the long run: Since the loan is spread out over a longer period, homeowners will end up paying more interest over the life of the loan.

  • Higher total cost: While monthly payments may be lower, the total cost of the loan will be higher due to the additional interest.

  • Longer time to build equity: With a longer loan term, it will take longer for homeowners to build equity in their homes.

If you are a homeowner who is struggling to make your monthly payments, it's worth considering if a 40-year mortgage could offer you some relief. As with any major financial decision, it's important to do your research and speak with a professional to determine if this option is right for you. While a 40-year mortgage may result in more interest over the long term, it may also help you stay in your home and avoid defaulting on your mortgage.

bottom of page