How Trump’s Housing Policies Could Reshape Mortgages
- Neil Caron
- Apr 6
- 2 min read
As we head into the 2025 election cycle, the mortgage industry is watching closely: what will Trump 2.0 mean for housing? While there’s still a lot of uncertainty, some early signs suggest big changes could be coming—especially for government-backed loans and low-income borrowers.
No Change (Yet) to Loan Limits
FHFA Director Bill Pulte recently reassured the industry that there are no plans to lower the conforming loan limit, which currently sits at $806,500. That’s a relief to many, since a reduction would push more buyers into private, non-guaranteed mortgages—likely with higher rates and less protection.
But make no mistake—talks of downsizing Fannie Mae and Freddie Mac are back.
🐷 RSL Piggy Points: What You Need to Know
Conforming loan limits are safe for now, but changes could still come post-election.
Conservatives have long favored shrinking or even eliminating the role of Fannie and Freddie.
If the GSEs shrink, more mortgages could shift to private markets—meaning less predictability and higher risk.
The FHA, VA, and USDA may become the go-to for mission-driven lending (first-time buyers, low-income borrowers).
States may take the lead in regulating nonbank lenders, not the CFPB or FHFA.
Industry Concerns Grow
The housing market is already softening—especially on the high end. Unsold homes above $400k are piling up. Builders are renting instead of selling. Some fear this could echo the 2008 crisis.
Meanwhile, layoffs at HUD and FHFA suggest a reduction in federal housing support, which could slow down loan approvals and the resolution of distressed assets.
Trump’s Policy Themes (So Far)
GSEs won’t be released or privatized any time soon—but their role could be cut back.
Mission lending may be shifted fully to FHA/VA/USDA, with GSEs focused only on traditional, lower-risk borrowers.
Risk-based pricing will stay in place at GSEs, meaning FHA loans may remain a better fit for many low-income buyers.
🏁 RSL Perspective
At ReadySetLoan, we’re keeping a close eye on how policy shifts could affect your mortgage journey. If you’re a first-time buyer or exploring options in today’s uncertain market, FHA-backed loans may offer the most flexibility and lowest costs.
Regardless of what direction housing policy takes, our team at ReadySetLoan is here to guide you through it with clarity, expertise, and support—no matter who’s in the White House.
🏁 Ready to navigate these changes with a partner who has your back? Start your mortgage journey with ReadySetLoan today.
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