For the first time, Fannie Mae and Freddie Mac, the leading mortgage companies in the United States, will allow the inclusion of Bitcoin and Ethereum as part of applicants’ financial reserves in home loan applications. This groundbreaking policy, outlined by the Federal Housing Finance Agency (FHFA) Director William J. Pulte on June 25, 2025, signifies a gradual move toward incorporating digital currencies into standard housing finance.
How Are Cryptocurrency Values Assessed?
Cryptocurrency values won’t be directly equated to their market price under FHFA guidelines. Due to high volatility, a discount is applied, effectively requiring a reserve 2 times the actual amount needed. If, for example, someone holds $100,000 in Bitcoin, only $40,000 to $50,000 is recognized, demanding prudence in addressing digital asset risks within mortgage qualifications.
What Conditions Must Be Met?
Applicants must satisfy several stipulations to qualify their crypto assets as reserves. Eligible assets need to be on U.S.-regulated exchanges such as Coinbase, Kraken, or Gemini. Self-managed digital wallets do not meet criteria, as well as assets locked in staking services or decentralized finance protocols. Verification must include exchange documents reflecting balances over a 60-day period.
Director William J. Pulte stated, “The regulation aims to let mortgage providers accurately assess applicants’ full financial profiles when considering collateral.”
These stipulations emphasize transparency, requiring cryptocurrencies that are easily audited and liquid. Only exchange-verified, traceable assets will be viable options for mortgage purposes, ensuring reliable and secure applications.
Taking Advantage, But Be Prepared for Restrictions
Technology company Better Home & Finance, alongside Coinbase, has already begun embracing this innovation. This change allows homeowners to keep their digital assets without needing to sell them, avoiding any tax implications. Applicants must show reserves for up to six months of mortgage costs, translating to $90,000 in Bitcoin or Ethereum held in approved exchanges for a $500,000 home, considering the 50% reduction applied to the asset’s value.
The move is beneficial for those with substantial cryptocurrency holdings. However, it could pose difficulties for everyday investors or users favoring self-custody. With ongoing adoption, Freddie Mac will pursue inclusion discussions around specific cryptocurrencies and potential adjustments to valuation rates.
With mortgage terms adapting worldwide, the inclusion of cryptocurrencies may redefine housing finance models. Nonetheless, experts note that the effectiveness of these crypto-backed reserves will be truly tested during market instability to determine their long-term viability.
