This past spring it got easier for homebuyers to use cryptocurrency when qualifying for loans.
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Under these new rules, buyers don’t have to liquidate cryptocurrency right away. Instead, they can list their virtual tokens as an asset.
When it comes time to use digital money for a down payment or closing costs, homebuyers will need to convert their tokens to U.S. dollars, usually through a bank that will convert the asset.
Before we dig deeper into virtual currency (Fannie Mae’s term for cryptocurrency), let’s get a better understanding of just what crypto is.
Cryptocurrency is a type of unregulated digital asset that operates outside of central banks and governments. Individual coin or token records are stored in what’s called a digital ledger, more commonly called blockchain, which is a computerized database. Crypto uses a decentralized, peer-to-peer system to record transactions and issue new tokens.
Last week, the cryptocurrency Bitcoin USD was trading above $80,000 per token. Its all time high was $126,198, set in late 2025.
A study by the Pew Research Center estimates at least 20% of Americans have used cryptocurrency.
How we got here
Two years ago on July 27, 2024, then former President Donald Trump said on X that he wanted “to make the United States the crypto capital of the world.”
In June 2025, with Trump into his second term as president, Bill Pulte, the director of the Federal Housing Finance Agency (the regulator and conservator for mortgage giants Fannie Mae and Freddie Mac) directed both mortgage giants to begin recognizing digital assets in the home loan process.
Both were to view cryptocurrency as a qualifying asset in single-family housing risk assessments (for houses from one to four units). There would be no need to liquidate the cryptocurrency up front. The only thing needed was qualifying assets (broken out by dollar value) that are held and verified on U.S. central exchanges.
Today, an account statement must list the crypto assets in U.S. dollars. If the assets are not listed by dollar value, they must be liquidated into an eligible asset account.
In addition to Fannie Mae and Freddie Mac, the Federal Housing Administration, the Department of Veterans Affairs and certain banks that do portfolio lending and exotic mortgages are all accepting cryptocurrency as qualifying assets.
Crypto deposits vs. dollar deposits
Fannie Mae requires a letter of explanation and sourcing of the funds whenever a large dollar deposit is put into your bank account (for example, more than a paycheck) within the last two months. (Lenders always ask for the most recent two months of asset statements.)
Fannie Mae defines a large deposit as the amount that exceeds 50% of the total monthly qualifying income. For example, if your monthly gross income is $10,000 and you have a $5,100 bank deposit, you will need to explain and source it.
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Unverified funds are not acceptable for the down payment, closing costs or any required cash reserves.
Cryptocurrency doesn’t have to be sourced as far as Fannie underwriting rules are concerned, no matter how big the recent deposit is. So, if you deposit $100,000 worth of crypto this month, there is no need to document and defend the source of the crypto.
Fannie and Freddie and all mortgage lenders, for that matter, want to know where the large deposits came from, as it could be borrowed funds, illicit funds or funds from a straw buyer (someone buying the property on somebody else’s behalf because the person has bad credit or is trying to hide assets, for example).
If the money is borrowed, what are the repayment terms? Can the borrower truly afford to pay back both the mortgage and the person from which the funds were borrowed?
Nobody wants to see a property go into foreclosure because the borrower was not truly qualified.
Cryptocurrency has no such standard about sourcing large deposits. So, if someone borrowed funds, provided illicit assets or are a straw buyer, the easy avenue is going to be through cryptocurrency. Can you say double standard?
Freddie Mac rate update
The 30-year fixed rate averaged 6.71%, 5 basis points higher than last week. The 15-year fixed rate averaged 5.98%, 4 basis points higher than last week.
The Mortgage Bankers Association reported a .8% mortgage application increase compared to one week ago.
Bottom line: Assuming a borrower gets an average 30-year fixed rate on a conforming $832,750 loan, last year’s payment was $115 less than this week’s payment of $5,379.
What I see: Locally, well-qualified borrowers can get the following fixed-rate mortgages with one point: A 30-year FHA at 5.875 %, a 15-year conventional at 5.625 %, a 30-year conventional at 6.25%, a 15-year conventional high balance at 5.875% ($832,751 to $1,249,125 in LA and OC and $832,751 to $1,104,000 in San Diego), a 30-year-high balance conventional at 6.5% and a jumbo 30-year fixed at 6.5%.
Eye-catcher loan program of the week: A 30-year mortgage, 30% down, 5.5% for the first five years payments, and 1 point cost.
Jeff Lazerson, president of Mortgage Grader, can be reached at 949-322-8640 or [email protected].
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