Can You Use Cryptocurrency to Help Buy a House?

Recently, there’s been talk about using cryptocurrency—like Bitcoin or Ethereum—to help people qualify for a mortgage. That’s big news! But what does it really mean? Will this help more people buy homes, or is it just a lot of hype?

At Independent Home Finance Inc., we like to break down complex topics into plain English, so let’s walk through what’s really going on and how it could affect future homebuyers.

What’s Happening?

The Federal Housing Finance Agency (FHFA)—the group that oversees big mortgage companies like Fannie Mae and Freddie Mac—is now looking at whether people should be allowed to use crypto as part of their mortgage application.

Right now, if you want to use crypto money to help buy a home, you have to sell it, turn it into dollars, and put it into your bank account first. That money then “counts” when you’re applying for a loan.

This new idea would let you keep your crypto without selling it, and still use it to show that you have money saved—what lenders call “reserves.”

Wait—What Are Reserves?

Great question.

When you apply for a mortgage, lenders don’t just want to know how much money you make. They also want to know if you have extra money saved up—just in case something goes wrong, like you lose your job or have an emergency. These savings are called reserves.

Reserves give lenders peace of mind. Usually, people show reserves using:

  • A savings account
  • A 401(k)
  • Stocks or bonds

Now, the government is thinking: Should we add cryptocurrency to this list?

So… Is This a Big Deal?

Kind of. But not for most people.

If you already own cryptocurrency and you want to buy a house, you can do that today—you just need to move the money to your bank account ahead of time. Most lenders want to see that money sitting in your account for at least 60 days before it counts as reserves.

So this new idea wouldn’t suddenly let people use crypto for down payments or to buy homes with no dollars. Instead, it might let people skip the step of moving the money, and keep their crypto invested while still showing they have reserves.

Then What’s the Point?

That’s where things get interesting.

This move isn’t really about helping homebuyers right now. It’s more about the government trying to make crypto seem more “official” or “legit.”

Let’s say Fannie Mae and Freddie Mac start accepting crypto as a real asset, like stocks. That would send a signal to the rest of the financial world:

“Crypto is now part of the mainstream financial system.”

It would help crypto feel safer and more accepted by big banks and lenders. It might even lead to new types of loans in the future where people use crypto for more than just reserves.

But Isn’t Crypto Risky?

Absolutely. That’s why this would start slow.

Crypto prices go up and down a lot. One day your Bitcoin might be worth $100,000, and a week later it could be $80,000. That makes lenders nervous.

Because of this, if Fannie or Freddie do allow crypto reserves, they’d probably only count a small percentage of your holdings. For example:

  • If you have $100,000 in stocks, a lender might count $50,000 of that.
  • With crypto, they might count just $20,000, because it’s more volatile.

So you’d still need to show other forms of financial strength like income, credit score, and a solid down payment.

Could This Help Some Buyers?

Yes—but only a few.

If you’re a tech-savvy investor with a big crypto portfolio and you don’t want to sell it, this could help you qualify for a loan without cashing out. It’s especially useful if you need to prove you have reserves but don’t want to disturb your crypto investments.

But for most people—especially first-time buyers or folks saving with regular bank accounts—this won’t change much.

Will Crypto Ever Be Used Like Income?

That might be coming down the road.

Some special loan programs already let people use large savings (like millions in stocks or cash) to help qualify for a mortgage—even if they don’t have regular job income. These are called asset depletion loans.

In the future, if the rules evolve, crypto might be used the same way. If someone has $5 million in Bitcoin, a lender might say: “You have enough money to pay this mortgage for the next 30 years. You’re approved.”

We’re not there yet, but this could be the first step toward that kind of thinking.

So, What Should You Do If You Own Crypto?

If you’re planning to buy a home soon, play it safe:

  • Sell your crypto early and move the money to your bank account
  • Make sure it’s there for at least 60 days before applying
  • Work with a loan expert (like us!) who understands how to guide you through the process

That way, there are no surprises when you go to apply for a mortgage.

Final Thoughts from Independent Home Finance Inc.

This move by the FHFA won’t change the game overnight, but it’s a clear sign that crypto is becoming part of the financial conversation.

It might not help most buyers right now—but it could open the door for new kinds of loans and qualifications down the line. In the meantime, we’ll keep you updated on every shift, change, and trend that affects how people buy homes in today’s world. If you’re thinking about buying a house or tapping into your home’s equity—and wondering how your crypto fits in—reach out to us at Independent Home Finance Inc. We’re here to help you make smart, forward-thinking moves, no matter what’s in your wallet.

Posted in Uncategorized