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Pennsylvania-based mortgage lender Newrez announced January 16 it will begin accepting cryptocurrency holdings in mortgage applications starting February, becoming one of the first major US lenders to implement federal guidance allowing digital assets in homeownership decisions.
The move follows a June 2025 directive from the Federal Housing Finance Agency (FHFA) instructing Fannie Mae and Freddie Mac to develop frameworks for recognizing crypto in loan underwriting—a policy backed by FHFA Director Bill Pulte as an affordability measure but criticized by Democratic senators including Elizabeth Warren as prioritizing politics over financial stability.
The Newrez decision follows guidance issued in June 2025 by the US Federal Housing Finance Agency (FHFA), which directed Fannie Mae and Freddie Mac to develop frameworks for recognizing crypto assets in loan applications. The directive signaled the first major institutional acknowledgment that crypto holdings could play a role in mortgage underwriting.
At the time, Michael Saylor, chair of Bitcoin treasury firm Strategy, framed the shift as historic.
“Future generations will remember this as the moment Bitcoin entered the American dream,” — Michael Saylor, Chair, Strategy.
His remark captured the optimism surrounding crypto mortgages as a bridge between digital wealth and traditional homeownership.
FHFA Director Bill Pulte said the policy was aligned with the agency’s mandate to expand access to housing. In his directive, he wrote that crypto consideration would support efforts to “help ensure sustainable, long-term home ownership.” In a later interview, Pulte emphasized affordability as a core motivation:
“We are doing everything we can to increase affordability. One of the reasons that we are doing this with regard to crypto is because crypto has an enormous opportunity to help with affordability” — Bill Pulte, Director, FHFA.
Supporters argue that crypto mortgages could help address a growing generational imbalance in US homeownership.
While overall ownership rates have hovered between 60% and 70% for decades, the average age of homeowners has risen sharply — from about 39 in 2010 to nearly 59 today. Younger Americans, particularly Millennials and Gen Z, are entering the housing market at much lower rates.
Home ownership rates in the US are generally in the 60% range. Source: US Federal Reserve
This trend is compounded by the growing influence of institutional investors. A 2023 Hamilton Project report found that mega-investors owned up to 27% of single-family rental homes in Atlanta, 45% in Memphis and 37% in Birmingham. Against this backdrop, crypto mortgages are being framed as one tool that could help younger, asset-rich but cash-poor buyers compete.
Most crypto holders are under the age of 44, and proponents say allowing crypto to count toward mortgage eligibility could marginally improve access to homeownership.
Even before the FHFA guidance, Miami-based fintech firm Milo announced in 2022 that borrowers could use crypto to secure 30-year mortgages while retaining ownership of their assets. At the time, Milo CEO Josip Rupena said,
“The existing ways for crypto consumers to access home credit has left them with unintended tax liabilities of selling for a down payment,” — Josip Rupena, CEO and Founder, Milo.
Despite growing acceptance, crypto mortgages remain constrained by risk management concerns. The FHFA requires that qualifying crypto assets be held on US-regulated exchanges and that lenders implement mitigation strategies to address volatility. Importantly, the agency cannot compel lenders to accept crypto, leaving adoption uneven.
Industry analysts say lenders are likely to be selective. “There are some lenders right now that are willing to do business based on Bitcoin,” — Charles Whalen, Chairman, Whalen Global Advisors. He added that acceptance does not extend broadly across the crypto market: “Not so much the other tokens, but I think Bitcoin is way in the lead in terms of getting this kind of recognition.”
Whalen noted that most crypto mortgages currently fall into private-label or jumbo loan categories rather than loans intended for resale to Fannie Mae or Freddie Mac.
“These are not mortgages that are going to be sold to Fannie Mae or Freddie Mac,” — Charles Whalen, Chairman, Whalen Global Advisors. As a result, borrowers may face stricter terms and higher costs.
Lenders may also discount crypto holdings to account for price swings, forcing borrowers to “take a haircut” on valuations. This approach reduces exposure to sudden market downturns but limits how much crypto wealth can meaningfully support a mortgage application.
The future of crypto mortgages is also tied to politics. Pulte said his order aligned with President Donald Trump’s vision of making the US “the crypto capital of the world.” Redfin Chief Economist Daryl Fairweather said the policy shift carries symbolic weight.
“It helps normalize crypto, helps to legitimize cryptocurrency, which I think helps the president’s agenda,” — Daryl Fairweather, Chief Economist, Redfin.
However, not all lawmakers agree. Senators including Elizabeth Warren and Bernie Sanders criticized the FHFA move, warning it prioritized politics over financial stability. In a joint letter, they argued that governance conflicts and systemic risk were being overlooked.
Republican lawmakers have attempted to codify crypto mortgages into law. Senator Cynthia Lummis introduced the 21st Century Mortgage Act in July 2025, though the bill remains stalled in committee. Meanwhile, the administration is exploring other affordability measures, including allowing retirement savings to be used for down payments and restricting institutional investors from purchasing single-family homes.
As lenders weigh these developments, the adoption of crypto mortgages will likely hinge less on ideology and more on economics. As Whalen put it, the mortgage system ultimately operates in dollars, not digital assets, and bridging that gap remains the central challenge for crypto mortgages in the US.
