Could your Bitcoin stash soon help you buy a house? A groundbreaking directive from the Federal Housing Finance Agency (FHFA) might just make that a reality for aspiring homeowners.
According to AP News, on Wednesday, FHFA Director William Pulte ordered Fannie Mae and Freddie Mac to craft a proposal recognizing cryptocurrency holdings as assets for reserves in single-family home loan risk assessments.
Pulte, who took the helm at FHFA in March, is pushing for a modernized approach to mortgage qualifications. This shift could open doors for crypto investors who previously had to liquidate their digital assets to qualify for loans. It’s a nod to the rising tide of alternative investments in today’s economy.
The directive specifies that only cryptocurrencies evidenced and stored on U.S.-regulated centralized exchanges, compliant with all applicable laws, will be considered. This restriction aims to balance innovation with risk management. Notably, Pulte’s order, effective immediately, states that these assets don’t need to be converted to U.S. dollars for assessment.
Historically, banks seeking mortgages for purchase by Fannie and Freddie ignored a borrower’s crypto holdings unless sold or converted to cash. This outdated stance often forced investors to abandon their positions, sometimes at a loss, just to meet lending criteria.
Compare that to stocks, which are already counted as reserves, albeit often discounted for volatility. Why shouldn’t crypto get similar treatment? Pulte’s policy seeks to level the playing field, urging banks to rethink creditworthiness in a digital age.
The U.S. housing market, a cornerstone of the economy, has been languishing since early 2022. Mortgage rates spiked from pandemic lows, and home sales hit a near 30-year low last year, with sluggish activity persisting due to high rates and climbing prices. A Redfin analysis from April shows sellers outnumbering buyers by nearly 34%.
Fannie Mae and Freddie Mac, under government control since the Great Recession, play a pivotal role by purchasing mortgages that meet their risk standards from banks. They guarantee about half of the $12 trillion U.S. home loan market, providing essential liquidity. Any change in their criteria ripples through the industry.
This policy tweak isn’t just about crypto—it’s about access. The intent is to expand the pool of eligible homebuyers, especially as cryptocurrencies gain traction as alternatives to traditional investments like stocks or bonds.
“This is a big win for advocates of cryptocurrencies,” said Daryl Fairweather, chief economist at Redfin. “As long as lenders are appropriately discounting crypto based on volatility, it’s fine that crypto investments count toward reserves.”
Danielle Hale, chief economist at Realtor.com, echoed the sentiment. “If Fannie and Freddie are going to accept cryptocurrency as collateral, that’s a strong incentive for banks to shift their practices.”
Hale added, “Because people who might otherwise have to sell cryptocurrency to qualify—and maybe that’s a deal-breaker for them now—under this new policy, they can qualify.”
Still, crypto’s role in homebuying remains niche. A National Association of Realtors survey from mid-2023 to mid-2024 found that just 1% of homebuyers used crypto sale proceeds for down payments. But with Pulte’s push, that figure could grow as banks adapt.
For investors, this signals a broader acceptance of digital assets in mainstream finance—an encouraging step if you’re building wealth through crypto. Keep an eye on how lenders discount these volatile holdings. And if you’re eyeing a home, check if your portfolio might now tip the scales in your favor without cashing out.