- A new mortgage program to let crypto holdings count as reserves or income for eligible homebuyers.
- Crypto-backed mortgages could expand market access while requiring careful risk management.
US mortgage lender Rate has launched RateFi, a nationwide mortgage program, a report reveals. The program is expected to allow qualified borrowers to count verified cryptocurrency holdings toward underwriting requirements without selling their assets.
Operating within Rate’s non-qualified mortgage framework, RateFi is expected to enable high-liquidity, large-cap cryptocurrencies, and major US dollar-backed stablecoin to be considered as a qualifying reserve. In some cases, these assets may also be considered as an income source.
The program is expected to use a proprietary valuation model that factors market prices, volatility, and liquidity, while maintaining additional risk standards. However, crypto used for down payments or closing costs will still be converted to cash.
Kate Amor, EVP and head of enterprise products at Rate, shared in a statement,
“Younger generations are entering their peak homebuying years at a time when traditional paths to ownership are increasingly out of reach, yet they’re also the most active participants in the digital asset economy.”
According to Amor, this program comes as a response to the growing crypto adoption, with more than 10% of Americans holding digital assets.
Eligible crypto holders will need approved custodians, proof of ownership, asset seasoning, and use standard AML and KYC checks. Policymakers are exploring crypto’s role in housing finance, with proposals involving Fannie Mae, Freddie Mac, and the 21st Century Mortgage Act.
See Related: Federal Reserve Rate Cuts Boost Optimism In US Housing Market
How Crypto-Backed Mortgages Could Influence Housing Market Dynamics
Crypto-backed mortgages could gradually reshape the housing market by expanding access to buyers holding digital assets. According to industry experts, more lenders are considering cryptocurrency as income or reserves. This could allow buyers who were previously excluded due to limited cash to enter competitive markets, increasing demand in urban and tech-focused regions.
The move is also projected to influence pricing trends and lending strategies, especially for non-traditional borrowers. However, adoption depends on regulatory clarity, market stability, and valuation consistency, as lenders must manage volatility risk.
