How Cryptocurrency Could Soon Help You Qualify for a Mortgage
A Potential Game‑Changer for Crypto-Savvy Homebuyers
Just this week, the Federal Housing Finance Agency (FHFA) issued a major directive: Fannie Mae and Freddie Mac have been instructed to prepare proposals that would allow cryptocurrency holdings—on U.S.-regulated exchanges—to count as assets for mortgage reserve requirements, without forcing applicants to convert to cash first.
Why It Matters
- Simplifies the borrowing process
For crypto-holding buyers, this could eliminate the need to sell assets before applying, reducing timing delays and possible tax events . - A modern update to mortgage underwriting
The move reflects a broader effort by the industry to modernize and leverage varied asset types to assess borrowers’ strength, not just traditional savings or investments - A targeted first step, not comprehensive inclusion
It’s important to note: this change applies only to reserves, not income qualification. Applicants still likely need a stable income to qualify.
What the Directive Covers
According to FHFA Director William Pulte:
- Only cryptocurrency evidenced and stored on U.S.-regulated, centralized exchanges can be counted.
- Fannie and Freddie must account for volatility risks, likely discounting crypto values (e.g., 70–80 % of current market value) to buffer price fluctuations.
- Final adoption will depend on approval by Fannie Mae’s and Freddie Mac’s boards and subsequent FHFA review.
What This Means for You as a Borrower
If you hold legitimate cryptocurrency assets:
- You may be able to include crypto reserves in your mortgage application.
- This could reduce the risk of forced liquidation at an inopportune time.
- You’ll still face standard criteria—credit scores, debt-to-income ratios, stable earnings, etc.
What’s Next?
- Fannie Mae and Freddie Mac are expected to deliver proposals “as soon as reasonably practical”.
- Once approved by their Boards and FHFA, lenders can start integrating crypto reserves into their underwriting processes.
- Watch for implementing guidance later this year or early in 2026.
What You Can Do Now
- Ensure your crypto is on approved U.S. platforms—those that are regulated and centralized.
- Save detailed documentation of your holdings and transaction history.
- Speak with your lender early—it’s never too soon to discuss whether they plan to adopt this new guidance.
Bottom Line
This FHFA action marks a pivotal moment: for the first time, crypto assets could officially help borrowers qualify for mortgages—without cashing out. While not yet fully in place, it offers a promising twist for crypto-savvy homebuyers seeking flexibility in their financial portfolios.
Experienced Chief Operating Officer with a 26 + year demonstrated history of working in the banking industry. Skilled in all aspects of the residential mortgage market . Strong business development professional with a Bachelor of Science (BS) focused in Business Administration and Management, from St. Joseph College. A direct endorsement underwriter and a licensed Mortgage Loan Originator.
