- Rate now allows verified cryptocurrency holdings to count toward mortgage qualification without forcing borrowers to sell their assets for reserves or income.
- Any crypto used for a down payment or closing costs must still be converted to cash, potentially creating a taxable event.
- The program responds to a growing need, as over 10% of Americans hold digital assets yet traditional finance rarely accepts them as collateral.
- Regulators and lawmakers, including FHFA Director William J. Pulte and Senator Cynthia Lummis, are exploring how to formally integrate crypto into housing finance.
A major U.S. mortgage lender, Rate, has formally integrated cryptocurrency into traditional home financing by launching a nationwide program. The new RateFi product allows qualified borrowers to use verified digital asset holdings to meet underwriting requirements without liquidating them.
The program operates within the lender’s existing non-qualified mortgage framework. It permits crypto to count as qualifying reserves and, in some cases, as an income source.
However, any digital assets used for a down payment or closing costs must still be converted to cash. This requirement can trigger a taxable event, which traditional pledged-asset loans seek to avoid.
Consequently, the program uses a proprietary valuation framework to assess factors like market price and volatility. Rate‘s head of enterprise products, Kate Amor, said it works with a curated set of established, high-liquidity cryptocurrencies and stablecoins.
The rollout targets younger generations who are active in the digital asset economy but face housing affordability pressures. Amor told Cointelegraph that “Younger generations are entering their peak homebuying years at a time when traditional paths to ownership are increasingly out of reach.”
Meanwhile, this challenge has drawn increased attention from the Trump administration. Policymakers have begun exploring how to incorporate digital assets into housing finance.
In June 2025, Federal Housing Finance Agency Director William J. Pulte instructed Fannie Mae and Freddie Mac to draft proposals on treating crypto as a reserve asset. Subsequently, Senator Cynthia Lummis introduced the 21st Century Mortgage Act to codify that directive.
A niche market for crypto-backed real estate financing already exists with lenders like Nexo and Ledn. A January survey found a pronounced generational divide, with younger Americans far more likely to view crypto as central to finance.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
