Fannie Mae to Accept Crypto for Mortgage Down Payments

TLDR

• Fannie Mae will allow certain crypto assets to support mortgage down payments under a new framework.
• Borrowers can pledge Bitcoin and other approved tokens without converting them into US dollars.
• The Wall Street Journal reported that Coinbase and Better Home and Finance will support the rollout.
• The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to draft plans for crypto use in underwriting.
• The new crypto mortgage product will mark a first for mainstream US housing finance.

Fannie Mae will soon allow certain digital assets to support mortgage down payments, according to The Wall Street Journal. The report states that borrowers can pledge crypto holdings without converting them into US dollars. The initiative marks the first time a major US housing finance institution will recognize crypto in mortgage underwriting.

Fannie Mae and Crypto Mortgage Framework Take Shape

Fannie Mae plans to accept Bitcoin and other approved tokens as part of mortgage qualifications. The Wall Street Journal reported that the company will work with Coinbase and Better Home & Finance. Borrowers will pledge crypto assets directly instead of selling them for cash.

The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to prepare proposals for crypto consideration. The order allows certain digital assets in underwriting without mandatory dollar conversion. An FHFA official said the agency aims to reflect “evolving financial profiles of borrowers.”

Better Home & Finance will launch the new crypto mortgage product in partnership with Coinbase. The companies will outline which cryptocurrencies qualify under the program. However, they have not yet disclosed valuation methods for pledged holdings.

The report did not specify a launch date for nationwide availability. However, executives confirmed preparations are underway. They said they will share further details in the coming weeks.

Bitcoin and Other Digital Assets Enter Mortgage Underwriting

Bitcoin will likely feature among the first eligible assets under the new structure. However, the companies have not confirmed a final list of approved tokens. They also have not clarified whether stablecoins will qualify.

Newrez, a large non-bank lender, has already begun recognizing certain crypto holdings. The lender allows borrowers to count digital assets toward mortgage qualification standards. This approach enables applicants to retain exposure to crypto markets.

Fannie Mae’s shift follows rising crypto ownership among younger Americans. Many prospective buyers now hold part of their savings in digital currencies. As a result, regulators have examined ways to incorporate those assets into lending models.

The FHFA oversees Fannie Mae and Freddie Mac as government-sponsored enterprises. The agency acknowledged that digital assets form part of modern household balance sheets. Officials stated that the policy update responds to current market conditions.

The Wall Street Journal reported that this marks a first for mainstream US housing finance. The report stated that borrowers could unlock liquidity without triggering taxable sales. At the time of publication, Fannie Mae had not released formal eligibility criteria.

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