Crypto Enters the Mortgage Market as Fannie and Freddie Ordered to Count Digital Assets

What Happened

The Trump administration has ordered Fannie Mae and Freddie Mac, two of the biggest government-backed mortgage giants, to begin factoring certain cryptocurrency holdings into mortgage applications. 

The directive was issued on June 25th by Bill Pulte, director of the Federal Housing Finance Agency (FHFA). It requires both firms to treat crypto held on U.S.-regulated exchanges as part of an applicant’s financial assets.

While Fannie Mae and Freddie Mac don’t originate home loans themselves. However, they do guarantee over half of all U.S. mortgages, playing a central role in the housing market. Under the new policy, Americans with verified crypto holdings may be able to qualify for a mortgage without needing to convert those assets into cash.

The change will only apply to crypto held on centralized exchanges that are based in the United States. Self-custodial wallets, offshore exchanges, and decentralized platforms will be excluded from consideration. 

The FHFA also instructed Fannie and Freddie to account for crypto’s price volatility and security risks when evaluating applications.

Why It Matters

This policy marks the most significant step to date in integrating cryptocurrency into the mainstream U.S. financial system. For years, crypto has existed largely outside the traditional banking and mortgage industries.

Despite explosive growth in crypto investment, digital assets have generally been excluded from mortgage qualification processes. Crypto holders were effectively forced to liquidate their holdings and convert them to U.S. dollars if they wanted to buy a home with a government-backed mortgage.

The new directive changes that. It will officially recognize crypto (at least certain types of it) as a legitimate form of personal wealth for individuals applying for one of the most common types of home loans in the country.

Millions of Americans now hold some form of cryptocurrency, and for a growing number, it represents a sizable share of their net worth. Ownership in crypto has skyrocketed, with 28% of American adults, or 65 million people, owning cryptocurrency in 2025. 

By allowing crypto to count toward mortgage applications, the government is expanding access to homeownership for a large group previously left out of the system

But critics do see some risks. Cryptocurrency remains a highly volatile asset class, with prices that can swing dramatically in short periods of time. Tying that volatility to the housing market, particularly through government-backed institutions like Fannie Mae and Freddie Mac, raises concerns about long-term financial stability. 

Some housing experts warn that allowing crypto-based qualifications could increase risk exposure for the firms and, by extension, the broader mortgage system.

The policy also adds complexity to an already strained housing market. Fannie and Freddie were placed under federal conservatorship during the 2008 financial crisis to stabilize the housing system. Changes to how they assess risk can have downstream effects on mortgage rates, loan availability, and market confidence

How It Affects Readers

If implemented, individuals with verified crypto holdings on U.S.-based exchanges may no longer need to liquidate their digital assets to strengthen a mortgage application. This would make it easier for crypto investors to buy homes while preserving their investments, avoiding taxable events from selling crypto holdings.

But not all crypto is treated equally under the new policy. Only assets stored on U.S.-regulated centralized exchanges qualify.

That means crypto held in personal wallets, decentralized finance platforms, or on overseas exchanges won’t count toward mortgage eligibility. Applicants will also need to demonstrate proof of ownership and provide documentation from recognized exchanges.

Beyond individual buyers, this move could ripple through the mortgage industry as lenders, appraisers, and risk assessors adapt to the inclusion of digital assets. If crypto values fall sharply, an event not at all uncommon in the industry, the financial standing of recent homebuyers could deteriorate, which could vastly increase default risks. 

That may affect the balance sheets of Fannie Mae and Freddie Mac, two entities already carrying significant exposure to the U.S. housing market.

This policy could open the door for crypto investors to access government-backed home loans. But it also brings new risks to a system that has been vulnerable to financial crises in the past. The policy is in the early stages and could still face legal and regulatory hurdles before full implementation.