Fannie Mae to Accept Crypto for Mortgages: What You Need to Know!

by

US Housing Giant Fannie Mae to Accept Crypto as Mortgage Collateral

Key Highlights

  • Fannie Mae, backing nearly 40% of US mortgages, is moving to allow crypto as part of mortgage reserves.
  • Borrowers may no longer need to sell Bitcoin or Ethereum to qualify for home loans.
  • Lenders could apply heavy discounts, valuing crypto at as low as 10% of the market price.

Fannie Mae, a major financial company that supports nearly 40% of U.S. home loans, will now begin accepting mortgages backed by cryptocurrency, according to a recent report in the Wall Street Journal.

From my analysis, a recent Wall Street Journal report highlights a significant shift for the crypto industry. For a long time, many Americans holding Bitcoin, Ethereum, or other digital assets have had to sell them for traditional currency just to qualify for a mortgage. This new development changes that, and it’s a big deal for millions of crypto holders in the U.S.

Previously, Fannie Mae required that any cryptocurrency used for a down payment, closing costs, or savings had to be converted to U.S. dollars and held in a bank or other regulated financial institution before a lender could consider it valid.

That is about to change.

What changed and why it matters

The change in policy began on June 25, 2025, when William J. Pulte, Director of the Federal Housing Finance Agency (FHFA), made a surprising announcement.

Pulte directed Fannie Mae and Freddie Mac to develop plans that would let homeowners use their cryptocurrency as part of their mortgage qualifications, without needing to sell it for cash first.

In a recent post on X, Pulte stated he instructed his companies to treat cryptocurrency as an asset when considering mortgage applications, aligning with Donald Trump’s goal of establishing the U.S. as a global leader in cryptocurrency.

The new rules specified a few key requirements. Only cryptocurrencies traded and held on exchanges regulated in the U.S. would qualify. Businesses were also instructed to manage risks, considering things like market fluctuations and limiting the amount of a borrower’s funds that could be in cryptocurrency.

Fannie Mae and Freddie Mac were told to get their plans ready and submit them to the FHFA as quickly as possible, but they first needed to get approval from their boards of directors.

From directive to reality

Although the initial announcement came in June 2025, putting the process in motion, it’s taken time to put the changes into effect. Industry experts recently told Scotsman Guide that they hadn’t seen much detail from the government-sponsored enterprises (GSEs) about how this would work. However, a representative from the FHFA stated that the use of cryptocurrency for mortgages is growing quickly now that the agency has publicly supported it, calling it a positive development.

While waiting for broader changes, private lenders are already taking action. Newrez, backed by Rithm Capital (a company managing $53 billion in assets), revealed plans in late 2025 to offer mortgages secured by cryptocurrency. According to Bob Johnson, Newrez’s head of lending, digital assets are now common for many families, and growing stability, increased institutional interest, and clearer rules are proving that cryptocurrency is becoming a permanent part of the mortgage market.

What this means for crypto holders

For everyday crypto holders, this is a huge deal. Here is what you need to know:

You can now use your cryptocurrency holdings as part of your mortgage application without having to sell them. This means you won’t have to worry about paying taxes on your crypto at an inconvenient moment, or selling during a market downturn just to get approved for a loan.

There are some restrictions to this new change. First, it only affects how reserves are considered, not whether someone qualifies based on their income. Traditional requirements like credit scores, debt levels, and proof of steady income still matter. Plus, only cryptocurrency held on exchanges that follow U.S. regulations will be accepted. This means crypto stored on decentralized platforms, in personal wallets, or through direct transfers likely won’t qualify.

Experts predict lenders will significantly reduce the value of cryptocurrency when assessing loan applications. Dan Green, from Homebuyer.com, believes lenders might only consider crypto worth 10% of its current market price. They’ll likely require that these crypto holdings be well-established, readily available as cash (not locked up in staking), and easily convertible to funds.

The bigger picture

This isn’t a standalone event. Senator Cynthia Lummis recently proposed the 21st Century Mortgage Act, which would require government-backed mortgage companies to evaluate digital assets when deciding if someone qualifies for a loan. This push to include crypto in traditional finance started with the Trump administration, through initiatives like the order for a Strategic Bitcoin Reserve and now, with changes to how mortgages are approved.

Fannie Mae and Freddie Mac back more than half of all U.S. mortgages, so when they change their lending rules, most other lenders follow suit. This is a crucial step because it could pave the way for wider acceptance of cryptocurrency as a legitimate investment within the massive U.S. financial system.

This could be a major benefit for people heavily involved in cryptocurrency, particularly those with significant digital assets but limited cash. More broadly, it shows that crypto is increasingly becoming a part of mainstream American finance.

Read More

2026-03-26 15:18