Mortgage giant Fannie Mae to accept bitcoin and crypto as collateral for home loans

Digital assets are entering the U.S. housing market as mortgage giant Fannie Mae prepares to accept bitcoin and other crypto holdings as part of down payments, The Wall Street Journal reported Thursday.

The move allows crypto holders to directly use assets like Bitcoin when buying a home with Fannie Mae-backed loans. Instead of selling their crypto for US dollars, they can easily access traditional home financing by pledging it as part of a down payment. The program is being rolled out by Coinbase and Better Home & Finance.

The change comes after the US Federal Housing Finance Agency (FHFA) ordered Fannie Mae and Freddie Mac to set up plans to use certain crypto assets in mortgages without the mandatory conversion into dollars.

Crypto adoption prompts a rethinking of mortgage lending rules.

The rise of crypto, especially among younger generations, is forcing them to rethink traditional mortgage lending as global concerns about housing affordability rise.

Major bank lender Newrez has begun accepting certain crypto holdings as mortgage collateral, allowing home buyers to use digital assets without selling them.

FHFA, which oversees state-backed enterprises, recognizes that integrating digital assets through crypto will expand access to home ownership for a growing pool of wealth.

With homeownership rates among young Americans at historic lows, pressure is mounting to develop mortgage products that reflect modern financial realities.