In a major development for crypto adoption, the U.S. Federal Housing Finance Agency (FHFA) is actively exploring whether crypto holdings like Bitcoin and stablecoins could be considered as part of mortgage qualification criteria.
This move could signal a historic shift toward deeper integration between digital assets and traditional finance, making homeownership more accessible for crypto investors.
FHFA Opens the Door to Bitcoin-Based Mortgage Assessment
FHFA Director William Pulte, in a post on X (formerly Twitter), confirmed that the agency will âstudy the usage of cryptocurrency holdings as it relates to qualifying for mortgages.â
The FHFA oversees mortgage rulemaking for Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs) that back most U.S. home loans.
If implemented, the policy would allow crypto assetsâsuch as Bitcoin, stablecoins, and possibly Ethereumâto be treated as part of a borrowerâs asset base, potentially boosting approval odds for millions of crypto holders.
Why This Is Happening Now: SEC Rescinds SAB 121
Until recently, banks were hesitant to support crypto-based mortgage lending due to SECâs SAB 121 guidance, which forced them to treat customer-held crypto as liabilities.
That changed on January 23, 2025, when the SEC rescinded SAB 121, eliminating the accounting hurdle and clearing the way for crypto-backed loans by mainstream financial institutions.
This regulatory change could accelerate the use of crypto in real estate, beyond just private lenders or niche platforms.
Crypto-Backed Mortgages Already ExistâBut They’re Limited
Several fintech companies have already launched crypto-backed mortgage products, allowing borrowers to post Bitcoin or Ethereum as collateral in exchange for cash to buy homes.
However, these products:
- Typically require over-collateralization (up to 200%)
- Involve high volatility risk (requiring margin top-ups if prices fall)
- Are not widely supported by traditional banks
FHFAâs inclusion of crypto as part of mortgage qualification could dramatically expand access to such lending products, while offering more flexible terms under regulated frameworks.
Crypto-Driven Real Estate Demand Already Growing
A late-2024 research report highlighted that many lower-income households in high-crypto-ownership regions have used crypto gains to pay off mortgage debt.
In addition, crypto loan provider Ledn confirmed that high-net-worth clients are increasingly using Bitcoin-backed loans to buy real estate, without ever needing to sell their digital assets.
Whatâs Next for Crypto and Housing Finance?
If the FHFA moves forward, it could:
- Legitimize crypto as a financial asset class for mainstream banking
- Spur innovative mortgage products from major U.S. lenders
- Offer alternative financing paths for crypto-rich, credit-thin borrowers
This could become a turning point for financial inclusion and asset-backed innovation in the real estate sector.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.