Do you dream of owning a home?

Would you love to purchase a home, but are struggling to save for the down payment?

Since the housing crisis, people all across the nation have been searching for a better mortgage option. An option that will allow Americans to purchase a home, own it, and one that doesn’t put the banks at risk. It seems like that option has been discovered.

It is called the Wealth Building Home Loan. According to the Wall Street Journal, this loan is a better option than the traditional 30-year fixed rate mortgage loan.

What Is the Wealth Building Home Loan?

Before we unveil why Wall Street Journal would say that, let’s start off by explaining what the Wealth Building Home Loan actually is.

The Wealth Building Home Loan provides is a 15-year fixed rate mortgage that helps to pay the debt off fast and build equity faster.

Benefits of the Wealth Building Home Loan

  • In the first three years of paying on the WBHL, 77% of the monthly payments goes straight to the principle. This allows home owners to gain equity quickly. In a traditional 30-year fixed rate mortgage only 32% of your monthly payments goes to your principle according to the Wall Street Journal.
  • Instead of a down payment, you can pay to reduce your interest rate. According to, for every 1% paid up front, the interest rate on the loan is reduced by one half of percentage point. In an article by NPR, Kimberly Wright reported having an interest rate of .125.
  • In 15 years, you will own your home free and clear.

The Catch

The main catch to this new program is that the monthly payments will be higher than the 30-year mortgage.

Another catch is that this program has not been rolled out nationwide yet.

Ed Pinto, the creator of this loan, along with Stephen Oliner described the loan like this in an article by USA Today,

         “Buying a home with a Wealth Building Home Loan is very much like buying a house and then renting it to yourself!”


The Wealth Building Home Loan seems like it could be a great option for low to moderate income families and those still under the weight of student loans. Bank of America and Citigroup are already funding loans through the Neighborhood Assistance Corporation of America. Could this loan be the answer to creating lasting home ownership in America?

Are you looking for ways to save a down payment for your home? You may like to read, How to Save a Down Payment for Your Dream Home, to find out how. 

Your Turn

What are your thoughts about the Wealth Building Home Loan? Does it sound like a great option to you?