On Jan. 16, Pennsylvania-based lender Newrez announced plans to accept certain cryptocurrency holdings when considering mortgage applications. The change, which the company said will take effect in February, will apply to loans for homes, refinancing, and other investment properties.
For Newrez, this plan follows directions from the US Federal Housing Finance Agency (FHFA) last year. In June 2025, the FHFA ordered Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) to develop plans for recognizing crypto in loan applications.
In doing so, crypto gained at least partial recognition from two major government enterprises that provide liquidity and stability to mortgage markets. At the time, Michael Saylor, chair of Bitcoin (BTC) treasury company Strategy, commented, “Future generations will remember this as the moment Bitcoin entered the American dream.”
Despite guidance from housing authorities and growing acceptance, issuers remain risk-averse, and regulatory clarity is far from solid.
Crypto Mortgages Offer a New Avenue for Homeownership
Expanding the "American dream" — homeownership — was a significant motivator for the FHFA's decision. In his official directive to Fannie Mae and Freddie Mac, the agency’s director, Bill Pulte, wrote that crypto was to be considered as part of those companies’ goal to “help ensure sustainable, long-term home ownership.”
Homeownership rates in the US have remained relatively stable for the last 60 years, fluctuating between 60% and 70%, with peaks and valleys occurring during recessions and other volatile economic events.
However, in recent years, the average age of homeowners has increased significantly. It was around 39 years old in 2010, and just 15 years later, the average age nearly doubled to 59. This trend indicates a limited number of young entrants from the Millennial and Gen Z generations into the real estate market.
The concentration of single-family homes into fewer hands is further exacerbated by the presence of major institutional investors in the housing market. A 2023 report from the Hamilton Project found that so-called mega-investors owned as much as 27% of single-family home rental stock in Atlanta, 45% in Memphis, and 37% in Birmingham.
The vast majority of crypto owners are under 44. Allowing them to use their holdings to count toward a mortgage could, at least in some small way, make it easier for younger investors to own homes.
Pulte recently stated in an interview with CNBC, “We are doing everything we can to increase affordability. One of the reasons that we are doing this with regard to crypto is because crypto has an enormous opportunity to help with [affordability.]”
In 2022, well before the guidance from the FHFA, Miami-based fintech company Milo announced that borrowers would be able to use their crypto in securing 30-year mortgages while retaining ownership of their assets. At the time, Milo CEO and founder Josip Rupena said, “The existing ways for crypto consumers to access home credit has left them with unintended tax liabilities of selling for a down payment.”
However, if crypto mortgages do have the ability to affect positive change in homeownership, they still face challenges.
Valuation Risks and Regulatory Hurdles for Crypto Mortgages
The FHFA may have opened the door for crypto, but caveats apply. The asset in question must be held on US-regulated exchanges. Fannie Mae and Freddie Mac must also implement risk mitigation strategies.
While the FHFA can direct Fannie Mae and Freddie Mac to make recommendations and assessments, it cannot force individual lenders to accept crypto.
Furthermore, even if lenders accept crypto, they may not accept every altcoin. Charles Whalen, chairman of Whalen Global Advisors, told CNBC, “There are some lenders right now that are willing to do business based on Bitcoin.”
“Not so much the other tokens, but I think Bitcoin is way in the lead in terms of getting this kind of recognition.”
He noted that these types of loans are possible but are mostly confined to what the industry calls “private label” or “jumbo markets.” He added, “These are not mortgages that are going to be sold to Fannie Mae or Freddie Mac.”
Crypto investors may also face the prospect of having to “take a haircut” on their crypto valuations. To manage crypto’s notorious volatility, lenders may assume that the crypto price will fall, thereby decreasing its power as collateral.
Political Landscape Influences the Future of US Crypto Mortgages
There may also be a political component to crypto mortgages. Pulte stated that his June order was partly “in keeping with President Trump’s vision to make the United States the crypto capital of the world.”
Daryl Fairweather, chief economist at Redfin, commented that the order “helps normalize crypto, helps to legitimize cryptocurrency, which I think helps the president’s agenda.” Whalen suggested that the move should be viewed as more political than substantive.
Top Democrats expressed opposition to the move. Five senators, including crypto critic Elizabeth Warren and former presidential candidate Bernie Sanders, signed a letter claiming Pulte was prioritizing politics over risks to the financial system.
The senators wrote, “Your order states that ‘each Enterprise must submit and receive approval from its Board of Directors.’ However, you are the current Chair of each Board, and you have stacked the Boards with members who represent FHFA personnel and your industry allies.”
They further stated, “There also appears to be a serious conflict between your ability to order and approve the Enterprises’ proposals as FHFA Director and to ultimately influence the development of such proposals as Chair of the Enterprises’ boards.”
Republican lawmakers have attempted to codify the order into law. Wyoming Senator Cynthia Lummis introduced a bill, the 21st Century Mortgage Act, to do precisely this in July 2025. The bill has not advanced and remains in the Committee on Banking, Housing, and Urban Affairs.
The political momentum behind crypto loans may have its limits. Whalen indicated that major lenders could find it difficult to support the bill due to the market risk between when crypto is considered for a loan and when it is converted into dollars.
“The mortgage market ultimately is about a lender helping you buy your house, and then they sell that loan into the bond market. That bond transaction is in dollars.”
While lenders consider the order and its implications for their business models, the Trump administration is pursuing other avenues to lower housing costs. This month, the administration proposed various ideas for expanding homeownership. National Economic Council Director Kevin Hassett hinted at a plan to allow Americans to use their retirement savings, such as 401(k) plans, for down payments.
Trump has also suggested banning large institutional investors from purchasing single-family homes. He wrote on Truth Social on Jan. 7:
“For a very long time, buying and owning a home was considered the pinnacle of the American Dream [...] It is for that reason, and much more, that I am immediately taking steps to ban large institutional investors from buying more single-family homes, and I will be calling on Congress to codify it.”
Currently, there is strong political momentum behind cryptocurrencies in Washington, spanning from stablecoins to crypto mortgages. However, much of this momentum, and any potential effect it could have on housing affordability, ultimately depends on whether lenders deem it to be sound business practice.