They exist, but outside the mainstream, and the math rarely helps a typical buyer. A qualified mortgage caps the loan term at 30 years, so Fannie Mae, Freddie Mac, FHA, VA, and USDA won't touch a 40-year purchase loan. That leaves non-QM and portfolio lenders, the ones keeping the loan on their own books, and they price for the extra risk. The higher rate on a 40-year note generally eats up most or all of the payment savings you'd expect from stretching the term an extra ten years. You'll also usually see a larger down payment required, which rules it out for first-time buyers going in with the minimum. Two things get confused here: - The HUD headlines. FHA's 40-year term exists only as a loan-modification tool for existing owners coming out of forbearance who can't make their current payment. It keeps people in homes they already own; you can't use it to buy one. - The structure. The 40-year loans that do exist for purchases are often built as a 10-year interest-only period followed by a 30-year repayment schedule. As for credit unions offering them: most credit unions actually broker their loans out like anyone else. Only the larger ones doing true in-house portfolio lending can write a 40-year term, so the product stays niche, mostly relevant to certain investor strategies rather than everyday buyers.