The US mortgage has recognized coins! Crypto Assets can help you buy a house.

Deng Tong, Golden Finance

Original Title: The wind of crypto assets has blown into the U.S. real estate industry.

On Wednesday local time, the director of the Federal Housing Finance Agency (FHFA), Pulte, posted on social media: "After in-depth research and following President Trump's vision of making the U.S. the 'capital of cryptocurrency', today I have ordered Fannie Mae and Freddie Mac to prepare to classify cryptocurrency as an eligible asset for mortgage applications." This directive marks a significant potential shift in the U.S. government's support for businesses in the asset review standards for assessing mortgage qualification, and aligns with the established goal of the Trump administration to promote the popularity of cryptocurrency in the U.S.

Finally, the wind of crypto assets has blown into the US real estate industry.

1. Why should cryptocurrencies be classified as collateral assets for loan applications?

The core reason is the poor performance of the U.S. real estate market. Over the past 50 years, the homeownership rate in the United States has remained relatively stable, with about 62% of the population owning homes. However, in recent years, the number of new housing applications has sharply declined. Since mortgage rates have risen from pandemic lows at the beginning of 2022, the U.S. housing market has continued to be sluggish. Last year, home sales fell to nearly a 30-year low, remaining in a state of declining sales for the second consecutive year. So far this year, it has still been difficult to see improvement due to high interest rates and suppressed home prices. According to Redfin, as of April, the number of sellers in the national housing market was nearly 34% higher than that of buyers.

In addition, the number of mortgage loans issued (i.e., the process in which lenders and borrowers collaborate to form a mortgage loan) fell to near historic lows in mid-2024, with little improvement in the first quarter of 2025. The decline in issuance, particularly in refinancing, can be attributed to two major factors: housing supply issues and borrowing costs.

Forecast of mortgage issuance from 2012 to the third quarter of 2026. Source: Statista

Firstly, the growth in housing supply is insufficient to meet demand. Housing construction is lagging behind, with more homes being purchased by investors rather than potential homebuyers, and elderly homeowners continue to choose to live at home instead of moving to nursing homes.

The cost of borrowing is also increasing, and many people blame the decline in loan issuance on the Federal Reserve's interest rate hikes to curb inflation. However, the stringent review process by banks, a hangover from the subprime mortgage crisis, cannot be overlooked. For example: a down payment cannot be less than 20%, credit scores must be above 700, and proof of a stable income source is required, among other things. Many home transactions are canceled because buyers are unable to secure loans.

Faced with these unfavorable factors, the U.S. government is looking for ways to make it easier for homeowners to borrow, ultimately pinning its hopes on cryptocurrency.

II. Federal Housing Finance Agency (FHFA) Instruction Content Overview

The director of the Federal Housing Finance Agency (FHFA), Pulte, signed a directive on Wednesday local time that classifies cryptocurrency as an eligible asset for mortgage applications, marking the first time cryptocurrency has been included in the core system of housing loans in the United States. Below is the original text of the directive:

Federal Housing Finance Agency (FHFA)

About: Issuing directives to consider cryptocurrencies as an asset in risk assessment (Fannie Mae and Freddie Mac)

Decision Number: 2025-360

The issuance of directives considers cryptocurrencies as an asset for single-family residential loans provided to Fannie Mae and Freddie Mac.

In light of the fact that Fannie Mae and Freddie Mac (referred to as the "Enterprises") provide stability and liquidity to the residential mortgage secondary market through prudent standards to ensure sustainable long-term homeownership, they play a key role in the U.S. housing finance system.

Given that cryptocurrency is an emerging asset class that may provide opportunities to accumulate wealth outside of the stock and bond markets.

Given that cryptocurrencies are usually not considered in the mortgage risk assessment process for loans provided to "enterprises" if they are not converted to USD before loan settlement.

Given that the Federal Housing Finance Agency (FHFA) has determined that considering additional borrower assets in the risk assessment of enterprise-level single-family residential mortgages may enable enterprise-level institutions to evaluate the full asset information available for reserves and facilitate sustainable homeownership for creditworthy borrowers. Therefore, the Federal Housing Finance Agency, as the custodian, hereby directs each enterprise-level institution to prepare a proposal to consider cryptocurrencies as reserve assets in their respective single-family residential mortgage risk assessments without requiring the conversion of cryptocurrencies into dollars. Each enterprise-level institution should only consider cryptocurrency assets that can be proven and stored on U.S. regulated centralized exchanges and comply with all applicable laws. Additionally, each enterprise-level institution should also consider additional risk mitigation measures based on its own assessment, including adjustments for market volatility and ensuring adequate risk adjustments for the proportion of reserves held in cryptocurrencies. Before implementing any changes, enterprises must submit and obtain approval from their boards of directors, and then submit to the Federal Housing Finance Agency (FHFA) for review.

This command takes effect immediately and should be implemented as soon as reasonably practicable.

William J. Pálte Director of the Federal Housing Finance Agency

3. What is the significance of listing cryptocurrency as an identified asset for mortgage loan applications?

1. Improve the current situation of the real estate market

As mentioned earlier, the sluggish U.S. real estate market may be stimulated by this policy. More holders of crypto assets entering the ranks of homebuyers can increase market demand, alleviate the downturn in the real estate market, and play a positive role in stabilizing and promoting the development of the real estate market.

2. Favorable for cryptocurrency lending institutions

The Federal Housing Finance Agency (FHFA) officially recognizes cryptocurrencies, which may open up substantial federal loan programs for more borrowers. In 2024, the Federal Housing Administration alone issued over 760,000 single-family home mortgages, totaling 230 billion dollars.

According to the banking rules issued by the U.S. Securities and Exchange Commission (SEC) in Staff Accounting Bulletin No. 121, most banks will not be able to offer cryptocurrency-backed loans or mortgages before January 23, 2025. The rule requires financial institutions to classify cryptocurrencies as liabilities rather than assets on their balance sheets.

However, loans obtained through federal programs such as the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), and the United States Department of Agriculture (USDA) currently do not allow borrowers to use their cryptocurrency as collateral. In fact, some federal loans may even prohibit the use of the dollar proceeds from the sale of cryptocurrency for down payments.

The founder of the Bitcoin mortgage and bond company "People's Reserve," CJ Konstantinos, stated that Bitcoin can further help reduce the risks in the mortgage-backed securities market regulated by the Federal Housing Finance Agency (FHFA) by regulating Fannie Mae and Freddie Mac.

3. Promoting the integration of crypto assets with the traditional financial system.

The FHFA's directive is a significant breakthrough for cryptocurrency in the traditional financial sector, meaning that digital assets are incorporated into the core system of housing finance in the United States. Cryptocurrency plays an important role in people's lives alongside fiat currency. This will also promote the public's understanding of crypto assets and accelerate their adoption in daily life.

4. What do industry insiders think?

Bitcoin supporters have praised Pulte's open attitude, with some stating that features favored by lenders, such as transparent paper records, are already built into digital assets.

• Redfin's Chief Economist Daryl Fairweather: "This is a significant victory for cryptocurrency advocates, as it gives digital assets the same treatment as other assets." Currently, stock investments have been classified as qualified reserve assets, but lending institutions often apply discounted evaluations to highly volatile individual stocks or cryptocurrencies. "As long as valuations are reasonably adjusted based on volatility, it is entirely feasible to include crypto assets in reserves."
• Realtor.com Chief Economist Danielle Hale: "If the two giants accept cryptocurrency as collateral, it will strongly drive banks to change existing rules. Those who previously had to sell off crypto assets to qualify—perhaps this was the key reason they gave up on buying a home—can now gain direct access to loan eligibility, which essentially expands the pool of qualified buyers."
• Bitcoin mining as a service Blockware analyst Mitchell Askew stated: The asset's liquidity and transparent custody (i.e. its public blockchain) make it the "perfect collateral" for housing loans.

Some industry insiders have also expressed concerns about this.

• The company Strike, which offers Bitcoin-backed loans, indicates that there are some risks associated with the current form of cryptocurrency lending. Volatility is a major factor. If the price of BTC drops significantly, the loan-to-value ratio will increase, "which could trigger a margin call or liquidation—being forced to sell at an inappropriate time."
• A commenter believes that lending institutions also face risks: "The risk models in this area are simply insane. Traditional mortgage assumptions assume that a borrower's income and assets are relatively stable. Now, you are dealing with borrowers whose net worth may fluctuate by 50% within a week. How do you stress test your portfolio when your collateral includes a variety of assets from Bitcoin to random DeFi tokens?"