In a significant move for the cryptocurrency industry, the US Federal Housing Finance Agency (FHFA) is exploring the inclusion of digital assets like Bitcoin in the mortgage underwriting process. This development could reshape how Americans finance home purchases and marks a potential milestone in the adoption of crypto within mainstream financial systems.
What Prompted This Initiative?
On June 25, FHFA Director Bill Pulte announced that he had directed Fannie Mae and Freddie Mac to study the integration of cryptocurrencies into mortgage assessment frameworks. The announcement immediately influenced markets, with Bitcoin rising 2.2% to surpass $107,000.
Bill Pulte, appointed as FHFA Director in March 2025, brings a distinctly pro-crypto stance to the role. Unlike his predecessors, he has publicly supported digital assets since 2019 and has used his platform to advocate for more open policies toward cryptocurrency.
Financial disclosures reveal that Pulte holds between $500,000 and $1 million in Bitcoin and a similar amount in Solana. He also has investments in Marathon Digital Holdings, a US-based Bitcoin mining company, and has previously invested in speculative stocks like GameStop.
Understanding Fannie Mae and Freddie Mac’s Role
Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) are government-sponsored enterprises (GSEs) that play a critical role in the US housing finance system. They do not lend directly to homebuyers but instead operate in the secondary mortgage market, ensuring liquidity and stability by purchasing mortgages from lenders.
Together, these entities support approximately 70% of the US mortgage market. This means that most conventional loans issued by private lenders are eventually backed or purchased by either Fannie Mae or Freddie Mac.
The FHFA was established in 2008 following the housing market collapse to oversee these agencies and ensure the safety and soundness of the mortgage system. Any policy shift proposed by the FHFA could have profound implications for homebuyers and the broader financial landscape.
How Could Cryptocurrency Be Evaluated for Mortgages?
Currently, borrowers who wish to use digital assets for a mortgage in the US must first convert their crypto to US dollars and deposit the funds into a regulated bank account. These funds must also "season," meaning they must remain in the account for at least 60 days to be considered valid for down payment or reserve requirements.
The FHFA’s review is expected to examine whether these rules need updating. Key areas of focus may include:
- Valuation Methods: Due to the volatility of cryptocurrencies, lenders may apply a "haircut" — a reduction in the stated value to buffer against price swings.
- Holding Period: Longer-held assets with clear documentation and consistent custody may be favored over recently acquired or frequently traded crypto.
- Stablecoins: Tokens like USDC and USDT, which are pegged to the US dollar, might be treated differently given their relative stability.
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Private Sector Already Leading the Way
Several private lenders have already introduced crypto-backed mortgage products:
- Milo Credit, based in Florida, launched one of the first crypto mortgage programs in 2022. The company allows borrowers to use Bitcoin, Ethereum, or stablecoins as collateral without selling their holdings. As of early 2025, Milo had originated over $65 million in crypto-backed loans.
- Figure Technologies, led by former SoFi CEO Mike Cagney, has also explored large-scale lending programs secured by digital assets.
- Ledn offers a Bitcoin-backed savings account that functions similarly to a mortgage product, enabling loans at a 50% loan-to-value ratio.
However, these private loans operate outside the federal mortgage system. They are not eligible to be sold to Fannie Mae or Freddie Mac, which often results in higher interest rates and less favorable terms for borrowers.
Challenges and Considerations
Integrating cryptocurrency into mortgage lending is not without hurdles:
- Volatility: Sharp price fluctuations could jeopardize loan security.
- Regulatory Clarity: Clear guidelines around custody, transparency, and fraud prevention are needed.
- Over-Collateralization: Most private crypto loans require borrowers to pledge more collateral than the loan amount, which may not be feasible for all applicants.
Despite these challenges, the FHFA’s interest signals a growing acceptance of digital assets as legitimate financial instruments.
Frequently Asked Questions
Can I use Bitcoin to buy a house in the US today?
Yes, but only through private lenders specializing in crypto-backed mortgages. Traditional banks and federally backed programs do not yet accept cryptocurrency directly.
How might cryptocurrency be used in a mortgage application?
If approved, borrowers might use crypto to cover down payments, qualify for larger loans, or supplement income verification. Assets would likely be subject to discounting due to volatility.
What are stablecoins and would they be treated differently?
Stablecoins are cryptocurrencies pegged to stable assets like the US dollar. They may be viewed more favorably in mortgage underwriting due to their lower volatility.
Is my crypto safe if I use it as loan collateral?
This depends on the lender’s custody solutions. Reputable providers use secure, insured cold storage, but risks related to market volatility remain.
Could this policy make mortgages easier to get for crypto investors?
Potentially yes. It would allow investors to leverage their crypto holdings without selling, potentially avoiding capital gains taxes and retaining future upside.
When can we expect a decision from the FHFA?
The study is in early stages. An official rule change could take months or even years, depending on regulatory and political processes.
The FHFA’s exploration represents a symbolic step toward the integration of digital assets into traditional finance. While significant questions remain, the move acknowledges the growing relevance of cryptocurrency and may encourage further innovation in lending practices.
For those interested in the evolving role of digital assets in real estate and finance, staying informed on regulatory updates is essential. 👉 Explore real-time updates on crypto regulations