Mortgage giant Fannie Mae to accept Bitcoin and crypto as collateral for home loans

Digital assets are making their way into the US housing market as mortgage giant Fannie Mae prepares to accept Bitcoin and other crypto holdings as part of down payments, The Wall Street Journal reported Thursday.

The move allows crypto holders to use assets like Bitcoin directly when buying a home through Fannie Mae-backed mortgages. Instead of selling their crypto for US dollars, they can pledge it as part of the down payment, making it easier to access traditional housing finance. The program is being rolled out with Coinbase and Better Home & Finance.

The change comes after the US Federal Housing Finance Agency (FHFA) ordered Fannie Mae and Freddie Mac to draft plans that would let certain crypto assets be used in mortgage underwriting without mandatory conversion to dollars.

Crypto adoption pushes rethink of mortgage lending rules

The rise of crypto, in particular, among younger generations, is forcing a rethink of traditional mortgage lending, as housing affordability becomes a growing global concern.

Major non-bank lender Newrez has started accepting certain crypto holdings as part of mortgage qualifications, allowing homebuyers to leverage digital assets without selling them.

The FHFA, which oversees government-sponsored enterprises, has recognized that integrating digital assets could expand access to homeownership for a cohort increasingly building wealth through crypto.

With homeownership rates among young Americans at historic lows, pressure is mounting to develop mortgage products that reflect modern financial realities.