Crypto Now Counts Toward Your Mortgage - Here's What to Know

A Historic Shift in Mortgage Lending Policy

In a move that's turning heads in both the housing and crypto industries, the Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to formally begin considering cryptocurrency holdings in mortgage underwriting decisions.

That's right - under new federal guidance, your digital assets might soon help you qualify for a home loan. For high-earning professionals - particularly those working in technology or startup sectors who have accumulated wealth in crypto - this could represent a significant evolution in how your financial life is evaluated.

Let's break down what’s happening, what's not (yet), and what it means for you.

For years, cryptocurrency has existed in a gray area when it comes to traditional finance. While many people have built meaningful wealth through Bitcoin, Ethereum, or stablecoins, mortgage lenders have largely ignored those holdings, or worse, required liquidation before considering them in underwriting.

This directive changes that. It signals a new level of federal recognition that crypto is no longer fringe; it's part of how Americans build wealth.

And it’s about time.

1. Crypto Can Now Be Counted as an Asset for Conforming Loans

The FHFA has instructed Fannie Mae and Freddie Mac - the government-sponsored enterprises (GSEs) that back the majority of U.S. home loans - to develop frameworks for incorporating cryptocurrency into mortgage risk assessments.

This means that you may soon be able to list your digital asset balances as part of your financial profile, without needing to convert them to cash first. 

2. Only Crypto on U.S.-Regulated Centralized Exchanges Qualifies (For Now)

This is crucial. The directive limits eligibility to cryptocurrency that is:

• Held on a U.S.-regulated, centralized exchange (e.g., Coinbase, Kraken, Gemini)
• Easily verifiable through account statements or API aggregation
• Not self-custodied (cold wallets or DeFi holdings won’t count)

Why the restriction? Because verification and regulation are key. Exchanges with U.S. compliance are subject to Know-Your-Customer (KYC) and anti-money laundering (AML) rules, and they provide standardized reporting that underwriters can actually use.

If you're storing crypto on a hardware wallet or a MetaMask browser extension, this won't help you with your mortgage - yet.

3. Haircuts and Volatility Adjustments Are Coming

Don't expect a dollar-for-dollar credit.

Fannie and Freddie are required to establish internal controls to account for the notorious volatility of crypto. That means if you hold $100,000 in Bitcoin, underwriters may only count $60,000–$80,000 of it toward your liquid reserves or net worth, similar to how margin accounts or restricted stock are treated.

In other words, you can’t pledge an asset with a 24-hour volatility window without some guardrails.

Still, this is far better than the previous treatment, where crypto was simply ignored.

As a financial advisor who works with high-income, equity-compensated professionals, business owners, and crypto-forward tech workers, here's what this development means for your real-world planning:

✅ Your Crypto Wealth Just Got More "Real" - in the Eyes of Lenders

If you've been building a long-term crypto position, particularly on regulated exchanges, you may soon be able to leverage those holdings to:

• Qualify for a larger mortgage
• Strengthen your reserve profile
• Avoid liquidating appreciated crypto assets (and triggering taxes) just to meet lending requirements

For those of you buying second homes, relocating, or finally making that jump from renting to owning, financial planning for home purchases and income properties should factor in these new lending developments.

❌ This Doesn’t Mean You Should Move All Assets to Coinbase Tomorrow

While you may want to ensure that some portion of your digital assets is held on centralized exchanges for flexibility, that doesn’t mean abandoning good custody or asset protection strategies.

You still need to strike a balance between tax efficiency, estate planning, and risk management.

What this does mean is that you may need to start segmenting your crypto by purpose:

• Long-term cold storage
• Lending eligibility
• Estate-transfer accounts
• Tax-loss harvesting pools

This is crypto planning, not crypto speculation.

📅 Phase 1: Proposal Development

Fannie Mae and Freddie Mac have been instructed to submit frameworks to the FHFA that explain:

• How they'll treat crypto assets
• How will volatility be accounted for
• What documentation will be required?

These proposals will be vetted internally, then reviewed by the FHFA.

📅 Phase 2: Policy Implementation

Once approved, new underwriting criteria would be rolled out across conforming loan programs. This could take 6–12 months or longer, but the ball is already rolling.

📅 Phase 3: Private Market Follow-On

Once the GSEs lead the way, expect private lenders and jumbo loan underwriters to follow suit, considering crypto as well, especially for high-net-worth borrowers.

📌 If You're Planning to Buy a Home in 2025–2026:

• Start aggregating and documenting your exchange-based crypto holdings
• Keep clean records of cost basis and transaction history
• Talk with your lender and advisor about the evolving standards

📌 If You're a Startup Founder or Tech Executive:

• You may already have concentrated wealth in both equity and crypto, both of which are under increasing scrutiny in underwriting
• Consider how you integrate those assets into a diversified liquidity strategy

📌 If You’ve Avoided Mortgages Due to Lack of Traditional Cash Reserves:

• This change could make it easier to qualify
• But it’s not a guarantee — other factors like credit score, income, and debt-to-income ratio still matter
• The key is holistic planning, not just asset stacking

This isn’t just a housing finance issue; it's a symbolic shift in how U.S. institutions are treating cryptocurrency.

For years, digital assets were seen as speculative side bets. But now:

• The IRS wants its cut (and is increasing enforcement)
• The SEC is greenlighting Bitcoin ETFs
• The FHFA is letting crypto count toward a mortgage

This is crypto's transition from rebellion to recognition. And with that comes both opportunity and responsibility, especially for investors with meaningful digital wealth.

At VIP Wealth Advisors, I'm already working with clients to:

You may not need a mortgage tomorrow. You may not even be considering a move. But that's not the point.

This is about how the financial system is evolving and how your portfolio, strategy, and advisory team must adapt to it.

Crypto is no longer a curiosity. It's being woven into the fabric of traditional finance. That creates new tools, new flexibility, and yes, new complexity.

My job is to help you navigate that, so you can focus on building a life that aligns with your wealth, values, and goals.

If you'd like to review how this development impacts your plan — or how your digital assets fit into your broader financial strategy — let's talk.

Mark Stancato earned the DACFP Advanced Certificate in Blockchain and Digital Assets: Crypto Professional Track
Issued by Digital Assets Council of Financial Professionals
This is the only certificate program designed specifically for those working in the crypto industry. Graduates who earn their Advanced Certificate gain a deep level of knowledge and understanding about blockchain and digital assets.