Some US lenders are beginning to accept Bitcoin and other cryptocurrency holdings when evaluating mortgage applications, signaling a potential shift in the housing finance landscape. However, despite growing institutional acceptance, valuation risks, regulatory uncertainty, and market volatility continue to limit widespread adoption of crypto-backed mortgages.
On Jan. 16, Pennsylvania-based mortgage lender Newrez announced plans to recognize certain cryptocurrency holdings when reviewing mortgage applications. The policy, set to take effect in February, will apply to home purchases, refinancing, and investment properties.
Newrez’s move follows guidance issued last year by the US Federal Housing Finance Agency (FHFA). In June 2025, the FHFA directed government-sponsored enterprises Fannie Mae and Freddie Mac to develop proposals for incorporating cryptocurrency into mortgage underwriting frameworks.
This marked a significant moment for digital assets, as crypto gained partial recognition from two institutions that play a central role in providing liquidity and stability to US mortgage markets. At the time, Strategy Chairman Michael Saylor described the decision as “the moment Bitcoin entered the American dream.”
Still, despite regulatory encouragement, most mortgage issuers remain cautious, and comprehensive regulatory clarity around crypto mortgages has yet to emerge.
One of the FHFA’s stated goals in considering cryptocurrency is to expand access to homeownership, particularly for younger generations. In its directive, FHFA Director Bill Pulte emphasized that crypto should be evaluated as part of the agency’s mission to promote “sustainable, long-term homeownership.”
US homeownership rates have remained relatively stable over the past six decades, fluctuating between 60% and 70%. However, the age profile of homeowners has shifted dramatically. In 2010, the average homeowner was around 39 years old. By 2025, the median age had risen to nearly 60, highlighting a lack of Millennial and Gen Z participation in the housing market.
This trend has been exacerbated by the growing role of large institutional investors. A 2023 report by the Hamilton Project found that mega-investors owned up to 27% of single-family rental homes in Atlanta, 45% in Memphis, and 37% in Birmingham.
Meanwhile, the majority of crypto holders are under 44 years old. Allowing digital assets to count toward mortgage applications could, at least marginally, lower barriers to entry for younger buyers.
Speaking to CNBC, Pulte said, “We are doing everything we can to increase affordability. Crypto has enormous potential to help with that.”
Even before the FHFA’s guidance, Miami-based fintech firm Milo launched crypto-backed 30-year mortgages in 2022, allowing borrowers to use their digital assets as collateral without selling them. Milo CEO Josip Rupena noted that selling crypto for down payments often creates unintended tax liabilities for borrowers.
Despite growing interest, crypto mortgages come with strict conditions. Under FHFA guidance, eligible crypto assets must be held on US-regulated exchanges, and Fannie Mae and Freddie Mac are required to implement robust risk-mitigation strategies.
Importantly, the FHFA cannot mandate that private lenders accept cryptocurrency. Even among willing lenders, acceptance is typically limited to Bitcoin, rather than a broad range of altcoins.
According to Charles Whalen, Chairman of Whalen Global Advisors, “There are some lenders willing to do business based on Bitcoin, but not so much with other tokens.”
He added that such loans are largely confined to private-label or jumbo mortgage markets, meaning they are not sold to Fannie Mae or Freddie Mac.
Borrowers may also face significant valuation haircuts. To manage crypto’s well-known volatility, lenders often assume price declines when assessing collateral value, reducing the amount borrowers can leverage.
The expansion of crypto mortgages is also influenced by political considerations. Pulte has stated that the FHFA’s order aligns with former President Donald Trump’s vision of making the United States the global hub for cryptocurrency innovation.
Redfin Chief Economist Daryl Fairweather said the move helps normalize and legitimize crypto, supporting the administration’s broader agenda. However, Whalen argues that the policy shift is “more political than substantive.”
Several Democratic lawmakers, including Elizabeth Warren and Bernie Sanders, have strongly opposed the initiative, warning that it prioritizes political messaging over financial system stability. Meanwhile, Republican lawmakers have attempted to codify the FHFA’s guidance into law through the 21st Century Mortgage Act, introduced by Senator Cynthia Lummis in July 2025. The bill remains stalled in committee.
Whalen noted that major lenders may hesitate to support such legislation due to currency risk between the time crypto is evaluated and when mortgage loans are ultimately converted into US dollars and sold in bond markets.
Crypto mortgages are gaining momentum in Washington, reflecting broader political and institutional support for digital assets. However, their ability to meaningfully improve housing affordability and access will ultimately depend on whether lenders view crypto-backed loans as commercially viable and risk-appropriate.
Until volatility, valuation, and regulatory concerns are addressed, crypto mortgages are likely to remain a niche offering rather than a mainstream solution.
US Lenders Slowly Open the Door to Crypto-Backed Mortgages
On Jan. 16, Pennsylvania-based mortgage lender Newrez announced plans to recognize certain cryptocurrency holdings when reviewing mortgage applications. The policy, set to take effect in February, will apply to home purchases, refinancing, and investment properties.
Newrez’s move follows guidance issued last year by the US Federal Housing Finance Agency (FHFA). In June 2025, the FHFA directed government-sponsored enterprises Fannie Mae and Freddie Mac to develop proposals for incorporating cryptocurrency into mortgage underwriting frameworks.
This marked a significant moment for digital assets, as crypto gained partial recognition from two institutions that play a central role in providing liquidity and stability to US mortgage markets. At the time, Strategy Chairman Michael Saylor described the decision as “the moment Bitcoin entered the American dream.”
Still, despite regulatory encouragement, most mortgage issuers remain cautious, and comprehensive regulatory clarity around crypto mortgages has yet to emerge.
Crypto Mortgages Could Help Younger Americans Access Homeownership
One of the FHFA’s stated goals in considering cryptocurrency is to expand access to homeownership, particularly for younger generations. In its directive, FHFA Director Bill Pulte emphasized that crypto should be evaluated as part of the agency’s mission to promote “sustainable, long-term homeownership.”
US homeownership rates have remained relatively stable over the past six decades, fluctuating between 60% and 70%. However, the age profile of homeowners has shifted dramatically. In 2010, the average homeowner was around 39 years old. By 2025, the median age had risen to nearly 60, highlighting a lack of Millennial and Gen Z participation in the housing market.
This trend has been exacerbated by the growing role of large institutional investors. A 2023 report by the Hamilton Project found that mega-investors owned up to 27% of single-family rental homes in Atlanta, 45% in Memphis, and 37% in Birmingham.
Meanwhile, the majority of crypto holders are under 44 years old. Allowing digital assets to count toward mortgage applications could, at least marginally, lower barriers to entry for younger buyers.
Speaking to CNBC, Pulte said, “We are doing everything we can to increase affordability. Crypto has enormous potential to help with that.”
Even before the FHFA’s guidance, Miami-based fintech firm Milo launched crypto-backed 30-year mortgages in 2022, allowing borrowers to use their digital assets as collateral without selling them. Milo CEO Josip Rupena noted that selling crypto for down payments often creates unintended tax liabilities for borrowers.
Lenders Likely to Discount Crypto Valuations
Despite growing interest, crypto mortgages come with strict conditions. Under FHFA guidance, eligible crypto assets must be held on US-regulated exchanges, and Fannie Mae and Freddie Mac are required to implement robust risk-mitigation strategies.
Importantly, the FHFA cannot mandate that private lenders accept cryptocurrency. Even among willing lenders, acceptance is typically limited to Bitcoin, rather than a broad range of altcoins.
According to Charles Whalen, Chairman of Whalen Global Advisors, “There are some lenders willing to do business based on Bitcoin, but not so much with other tokens.”
He added that such loans are largely confined to private-label or jumbo mortgage markets, meaning they are not sold to Fannie Mae or Freddie Mac.
Borrowers may also face significant valuation haircuts. To manage crypto’s well-known volatility, lenders often assume price declines when assessing collateral value, reducing the amount borrowers can leverage.
Politics May Shape the Future of Crypto Mortgages
The expansion of crypto mortgages is also influenced by political considerations. Pulte has stated that the FHFA’s order aligns with former President Donald Trump’s vision of making the United States the global hub for cryptocurrency innovation.
Redfin Chief Economist Daryl Fairweather said the move helps normalize and legitimize crypto, supporting the administration’s broader agenda. However, Whalen argues that the policy shift is “more political than substantive.”
Several Democratic lawmakers, including Elizabeth Warren and Bernie Sanders, have strongly opposed the initiative, warning that it prioritizes political messaging over financial system stability. Meanwhile, Republican lawmakers have attempted to codify the FHFA’s guidance into law through the 21st Century Mortgage Act, introduced by Senator Cynthia Lummis in July 2025. The bill remains stalled in committee.
Whalen noted that major lenders may hesitate to support such legislation due to currency risk between the time crypto is evaluated and when mortgage loans are ultimately converted into US dollars and sold in bond markets.
Conclusion: Promise Meets Prudence
Crypto mortgages are gaining momentum in Washington, reflecting broader political and institutional support for digital assets. However, their ability to meaningfully improve housing affordability and access will ultimately depend on whether lenders view crypto-backed loans as commercially viable and risk-appropriate.
Until volatility, valuation, and regulatory concerns are addressed, crypto mortgages are likely to remain a niche offering rather than a mainstream solution.
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