Use Your Crypto Holdings to Buy Real Estate

How to Use Crypto to Buy Investment Real Estate in Savannah

The FHFA’s new directive is a milestone in integrating crypto with traditional home financing. William J. Pulte, the FHFA Director, announced that Fannie Mae and Freddie Mac (the two major government-sponsored mortgage enterprises) must “prepare their businesses to count cryptocurrency as an asset for mortgage”. This move aligns with President Donald Trump’s vision of making the U.S. “the crypto capital of the world”, signaling high-level support for bringing digital assets into the mainstream of finance.

In the official order (FHFA Decision No. 2025-360), Pulte emphasized that adding crypto to the equation would help lenders see a borrower’s full financial picture and could “facilitate sustainable homeownership to creditworthy borrowers”. Up until now, crypto was effectively ignored in mortgage underwriting – borrowers had to convert any cryptocurrency to U.S. dollars if they wanted it counted as assets for a loan, which created tax headaches and kept many crypto holders from qualifying. This directive removes that barrier. Now, cryptocurrencies will be considered a reserve asset for home-loan borrowers without needing to convert those assets into U.S. dollars. In short, your Bitcoin, Ether, or other coins can contribute to the reserves or net worth that lenders evaluate in a mortgage application.

Key highlights of the FHFA crypto directive include:

Crypto as Reserve Asset: Borrowers’ cryptocurrency holdings (e.g. Bitcoin or Ethereum) can now count toward the asset reserves needed for loan qualification. This marks the first time digital assets are being officially recognized in conventional mortgage risk assessments.
No Need to Cash Out: Applicants won’t be forced to liquidate their crypto to have it count. Previously, you had to sell your crypto for dollars (possibly incurring capital gains tax) just to prove you had the funds. Now, that step may not be necessary, reducing taxable events and letting you retain your investments.
Regulated Exchanges Only: The directive imposes sensible guardrails – only crypto assets that are verifiable and held on U.S.-regulated centralized exchanges will be considered. In other words, the Bitcoin in your Coinbase or other U.S.-regulated exchange account could count, but crypto stashed on an overseas platform or in a personal wallet won’t (at least for now). This ensures lenders can reliably verify and value the assets under existing oversight frameworks.
Risk Controls for Volatility: Cryptocurrency’s notorious price swings aren’t being ignored. Fannie Mae and Freddie Mac are instructed to include risk mitigants in their models – for example, applying a discount or “haircut” to the value of crypto assets or requiring extra collateral to offset volatility. This way, a sudden drop in Bitcoin’s price won’t undermine the soundness of a mortgage.
Implementation & Oversight: Each Enterprise must develop a proposal for how to integrate crypto into their underwriting and get it approved. They need to outline how they’ll count crypto without converting it to dollars, how they’ll adjust for risks, and then submit their plans for board approval and FHFA review before making the changes live. While the directive is effective immediately, we can expect detailed guidelines to roll out as Fannie and Freddie fine-tune their processes.

Overall, the FHFA directive acknowledges cryptocurrency as a legitimate part of a borrower’s wealth. This is a sea change in mortgage policy, reflecting the broader trend of crypto gaining acceptance as a mainstream financial asset in the United States. (In fact, even major banks are starting to explore crypto as loan collateral – for example, JPMorgan is planning to let certain clients use Bitcoin-related investments as collateral for financing.) By embracing crypto in mortgage assessments, regulators are modernizing how home loans are underwritten to better reflect where people are actually holding wealth in 2025.

Why This Is a Game-Changer for Homebuyers and Investors

The marriage of cryptocurrency and real estate is no longer a distant concept. The FHFA’s new directive signals that digital assets like Bitcoin are being taken seriously in the world of homeownership. This shift could pave the way for more innovative financing options, where borrowers leverage both their fiat and crypto wealth to invest in property. For homebuyers and investors, the implications are big.

First, consider young or tech-savvy buyers who have amassed significant crypto holdings. Many Millennials and Gen-Z investors got into crypto early and saw their assets grow. Previously, if they wanted to buy a house, they might have come up short on the traditional financial benchmarks – or been forced to sell off crypto to show cash reserves. Now, those crypto holdings can count toward mortgage requirements, such as the reserve funds lenders like to see. For example, a borrower with $50,000 in Bitcoin and $10,000 in the bank is no longer viewed as having just $10,000 in assets; under the new guidelines, that Bitcoin (held on a regulated exchange) could potentially be recognized as part of their financial reserves, bolstering their loan application.

For real estate investors, the directive is equally promising. Crypto-rich investors can leverage their digital assets to expand their property portfolio. Instead of liquidating cryptocurrency to free up cash (and possibly triggering taxable gains), an investor could use their Bitcoin or Ethereum stash as an additional asset when applying for an investment property loan. This means more borrowing power without parting with prized crypto holdings. It also offers a form of diversification: investors can keep their money in crypto, yet still use its value to back real estate deals. The FHFA explicitly noted that considering a borrower’s additional assets (like crypto) helps provide a “full spectrum” view of their finances and can “facilitate sustainable homeownership to creditworthy borrowers” – translating to more qualified buyers and more loans closed.

Crucially, the new policy could reduce the need to incur capital gains taxes just to buy a home. Under old rules, a crypto holder often had to sell coins for a down payment or to meet reserve requirements, creating a taxable event. Now, if your crypto can be counted as an asset by the lender, you might avoid that early sale. You could carry on with your crypto investment thesis (HODLing for the long term, for instance) while still moving forward with a real estate purchase. This is not only financially efficient for buyers, but it also expands the pool of eligible homebuyers. Many folks who were crypto-rich but cash-poor (on paper) will find it easier to qualify for mortgages with this change.

From a broader perspective, the FHFA’s recognition of crypto is a sign of growing institutional acceptance. It’s a “stamp of approval” in the eyes of banks and regulators that could spur further integration of crypto into traditional finance. If Fannie Mae and Freddie Mac successfully implement crypto-inclusive underwriting, private banks and other lenders are likely to follow suit. We could see a ripple effect where crypto-backed mortgage products become more common, interest rates become competitive for those loans, and the overall mortgage market adapts to serve the crypto-owning demographic. In the midst of a housing affordability and mortgage origination slump in the U.S., this move is also seen as a way to attract new borrowers – tapping into the crypto wealth held by millions of Americans to inject fresh demand into the housing market.

Of course, it’s important to note that the FHFA directive doesn’t mean anything goes with crypto. It opens the door, but within a framework of safeguards. Only certain crypto assets will likely be accepted (the directive did not specify which cryptocurrencies count, but one can guess that established coins like Bitcoin (BTC) and Ethereum (ETH) will be first in line). And because of volatility, lenders will be cautious – don’t expect them to credit 100% of your crypto’s market value toward your loan without any discount. Nonetheless, the ability to include crypto at all is a game-changer for those who hold it.

Using crypto holdings to buy investment real estate in savannah

How to Leverage Your Crypto for a Home Loan

With cryptocurrency now on the table in mortgage lending, how can you actually use your crypto holdings to help buy a house? Here are some practical steps and considerations for leveraging crypto in your mortgage application:

Document Your Crypto Assets: Treat your crypto like any other asset during the mortgage process. Keep clear records of your holdings on a U.S.-regulated exchange or platform. Lenders will require proof of ownership and value – for instance, account statements from your exchange showing your balance of Bitcoin/Ether and the fiat equivalent. Make sure the account is in your name (or a joint account if you’re buying with a spouse). Being on a regulated exchange not only helps meet the FHFA’s criteria, but it also gives the bank a level of comfort that the asset is legitimate and liquid.
Understand Valuation and Volatility: Don’t be surprised if the lender doesn’t count the full market value of your crypto toward your qualifications. Because crypto prices can swing dramatically, lenders might apply a haircut (e.g. count only 50-70% of your crypto’s value) or use an average price over the last few months to be safe. For example, if you have $100,000 in Bitcoin, the bank might credit, say, $60,000 of that toward your reserves or net worth for underwriting purposes. This is a built-in cushion in case prices dip. Stay updated on your crypto’s value throughout the loan process – if there’s a big market move, be prepared that the lender could ask for more documentation or even additional funds if the crypto value falls significantly.
Keep Your Crypto Accessible (and Legal): The easiest way to have your crypto counted is to keep it on a major exchange where it can be verified. If you’re mining or holding coins in a private wallet, consider transferring at least the portion you plan to use for the mortgage into an exchange well ahead of applying. Also, ensure your crypto came from legitimate sources. Lenders may inquire about the origin of funds (just as they do with large bank deposits), so be ready to show a paper trail if you liquidated any crypto for your down payment or closing costs. Some federal loan programs have been so strict that they wouldn’t even allow funds that originated from crypto sales to be used in down payments – so demonstrating compliance and transparency is key.
Balance Crypto with Cash: While crypto can now bolster your application, remember that a mortgage is still primarily evaluated on traditional metrics: income, credit score, debt-to-income ratio, and so on. You’ll likely still need a cash down payment (since the home seller and all parties will want actual dollars at closing). Crypto can help with the reserve requirement and overall strength of your profile, but you should integrate it into a broader financial plan. For instance, you might decide to liquidate a portion of crypto for the down payment (perhaps timing a sale when market conditions are favorable), then use the remaining crypto as verified reserves to satisfy the lender’s post-closing liquidity requirements. The good news is you have options – you can mix and match crypto and fiat to meet the needs of the transaction.
Work with Crypto-Savvy Professionals: This emerging intersection of crypto and real estate is new to many banks and brokers. Find a mortgage lender or broker who has experience with crypto assets or is at least open-minded to following the new guidelines. They’ll be on the cutting edge of policy and can guide you through any extra steps (like how to get your exchange account statements to underwriting, or whether the lender’s internal rules impose any additional caps on crypto valuation). Likewise, consult with a financial advisor or CPA who understands crypto taxes – if you do need to sell some crypto for a down payment or closing, you’ll want to plan for the tax implications. The right experts will ensure you navigate the process smoothly, turning your digital wealth into keys to a new property.

By following these steps, you’ll be positioning yourself to take full advantage of the FHFA’s crypto-friendly policy. The bottom line is preparation and transparency. Treat your crypto like the valuable asset it is, and be ready to show lenders that value in a way they can work with.

Impact on Loan Eligibility and Underwriting

It’s worth diving a bit deeper into how this policy change could affect mortgage eligibility and the underwriting process. In traditional underwriting, lenders look at your credit, income, and assets. Assets (like savings, investments, etc.) are crucial – they prove you have the means to cover down payments, closing costs, and even a cushion of mortgage payments in reserve. With crypto now in the mix, the definition of assets is broader.

Loan Eligibility: If you were on the cusp of qualifying for a loan, your crypto holdings might push you over the line. For example, some loan programs require that you have a few months’ worth of mortgage payments in reserve after closing. Let’s say for the loan size you want, the bank requires $20,000 in reserves sitting in an account. If you only had $15,000 in savings before, but you also have crypto worth $10,000, you might now meet the requirement by counting, say, $5,000–$7,000 of that crypto (after the lender’s volatility discount). In essence, crypto can make your application stronger on paper, which could lead to approvals that previously would have been denials. This is especially helpful for self-employed individuals or investors who keep a lot of wealth in non-traditional forms.

Underwriting Considerations: Mortgage underwriters will have to treat crypto with a bit of caution – and that’s built into the FHFA directive. We can expect underwriting guidelines to specify how crypto is evaluated:

Seasoning and Documentation: Just like large cash deposits need explanation, underwriters might require that crypto assets have been held for a certain period (to avoid last-minute borrowing of crypto to beef up your profile). They will also need documented values. It would not be surprising if lenders use 30-day or 60-day average pricesof a cryptocurrency rather than the spot price on the day of closing, to mitigate risk.
Eligible Cryptos: As mentioned, the directive didn’t list which coins count. It’s likely that Bitcoin (BTC) and Ethereum (ETH), being the largest and most established, will be universally accepted, possibly alongside a few others like popular stablecoins or major altcoins. The inclusion of stablecoins (cryptos pegged to the dollar like USDC) could be interesting – since they hold stable value, a lender might be more willing to count 100% of a stablecoin’s value, though it remains to be seen if stablecoins will be allowed under “cryptocurrency” reserves. Keep an eye on Fannie Mae/Freddie Mac’s bulletins for which assets are eligible.
Loan-to-Value (LTV) and Crypto: If crypto is being counted towards your assets, it might indirectly allow for higher loan amounts relative to your documented net worth. However, lenders won’t let crypto turn a bad loan into a good one. If you’re trying to borrow a very high amount relative to your income (high debt-to-income ratio), crypto reserves alone won’t save the day – but they might help tip the scales on marginal decisions or get you a slightly better interest rate for having more assets.
Risk Management: We touched on volatility adjustments, but practically, lenders might require excess reserves if a significant portion of your reserves is crypto. For instance, if $50k is needed in reserves and you want all $50k to be Bitcoin, a lender might say “actually, with Bitcoin we need 1.5x that amount, so $75k in BTC to count as $50k effective reserves, given its volatility.” These kinds of policies are likely to emerge as the industry digests the directive. Essentially, crypto will be part of the puzzle, but not an unwatched wildcard in the loan file.

One important point: this FHFA policy currently applies to conventional mortgages (the types that Fannie Mae and Freddie Mac purchase). Other segments of the market, like FHA (Federal Housing Administration) loans, VA loans, or USDA loans, have their own rules and are known to be strict about asset sources. As of now, many of those government-backed loans do not allow crypto as collateral or even sometimes as the source of a down payment. We may see changes there down the road, but for now, expect the crypto-friendly changes to hit first in conventional conforming loans (typically those for average home price ranges, under the Fannie/Freddie loan limits). Jumbo loans (larger loans not backed by Fannie/Freddie) are set by private banks – some may follow the FHFA’s lead and start allowing crypto reserves, especially if they plan to sell loans to Fannie/Freddie or simply to compete in the market.

Looking Ahead: Crypto’s Role in Real Estate Transactions

The FHFA directive is primarily about using crypto to qualify for a mortgage, but it’s part of a larger movement integrating crypto into real estate. Even before this government-backed shift, a few innovative companies started offering crypto-collateralized mortgages. These are niche lenders that let you pledge cryptocurrency to obtain a home loan, often targeting high-net-worth crypto investors. For example, a fintech lender called Milo has been issuing crypto-backed home loans where clients can use Bitcoin as collateral instead of a traditional down payment. However, such programs came with strict conditions – Milo requires borrowers to have enough crypto to cover the entire value of the loan in many cases. Essentially, you’d lock up an equivalent amount of Bitcoin to borrow dollars for the house. Companies like this reported that many of their clients were buying second homes or investment properties and had strong incomes, but traditional banks wouldn’t have qualified them for the full value of these homes (because their wealth was tied up in crypto, not in easily documented cash).

These early crypto-mortgage offerings also highlight the risks involved. Crypto prices are volatile, and if you’re using crypto as collateral, a price drop can be dangerous. If Bitcoin’s price plummeted, the loan-to-value ratio would shoot up, potentially triggering margin calls or even forced liquidation of your crypto at an unfavorable time. For instance, if you took a $500,000 loan collateralized by $1 million in Bitcoin, and then Bitcoin’s value halved, the lender might require you to put up more crypto or cash immediately to rebalance the loan. These scenarios are a bit like the wild west of lending, which is why mainstream banks largely stayed away.

What the FHFA directive does is bring some of that crypto lending concept into the regulated, mainstream mortgage system, but presumably with more stability and borrower protections. Instead of a 100% crypto-collateralized loan, you might get a traditional mortgage where crypto is just one piece of the approval puzzle. You’re still going to have an appraisal, a down payment, and a standard debt-to-income evaluation – it’s just that now your crypto counts alongside your savings and investments. This blended approach greatly mitigates risk compared to pure crypto loans, because the borrower isn’t typically borrowing against their crypto (no one is putting a lien on your Bitcoin itself in a conventional mortgage). Rather, you’re enhancing your creditworthiness with crypto. It’s a subtle but important difference. If crypto’s value drops, you might not lose your house – you just had a bit more cushion in your application that has now shrunk, which might be inconsequential after you’ve already closed on the loan. The worst-case scenario with the FHFA model is that if crypto crashed before closing, the lender might reduce how much of it they’ll count or ask you to show more assets. But you wouldn’t face an automatic liquidation scenario as in direct crypto-collateral loans.

Looking ahead, the acceptance of crypto by Fannie and Freddie could encourage more innovation in real estate transactions:

We could see more people using crypto profits to fund down payments, now that they know the remaining crypto can still count as reserves.
Lenders might develop new loan products targeting crypto investors, perhaps offering competitive rates if you hold a certain amount of Bitcoin with an affiliated exchange as a sign of financial strength.
There’s even the possibility of seeing cryptocurrency used directly in home purchases (there have been instances of buyers and sellers transacting in Bitcoin, but it’s not common). With institutional support, using crypto for property payments could become simpler – for example, imagine an escrow service that accepts Bitcoin for earnest money or down payments and instantly converts it to USD.
Title and escrow companies might start leveraging blockchain for faster property transfers or to accept digital currency. The directive itself is about underwriting, but it reflects a broader comfort with blockchain tech in the housing industry.

All told, the future of real estate is likely to include a healthy dose of crypto. As one crypto lending expert noted, many Bitcoin holders have already managed to buy real estate by borrowing against or using their digital assets, without ever selling their Bitcoin. That’s a powerful concept – it means you can have your cake and eat it too (hold your crypto andown a home). Now that federal regulators are on board, this idea will only spread further.

Ready to Use Crypto for Your Home Purchase? Let’s Talk.

The convergence of crypto and real estate is creating new opportunities for buyers and investors. If you’ve been holding cryptocurrency and wondering how to break into the property market, this is your moment. The rules are changing in your favor, and with the right strategy, you can use your crypto holdings to buy real estate while keeping your financial plan intact.

Now is a great time to get expert advice and make a plan. Our team at Team912 specializes in bridging the gap between digital assets and real estate. We stay on the cutting edge of policy changes like this FHFA directive to help our clients take full advantage. Imagine qualifying for a bigger or better mortgage because of the Bitcoin or Ether you’ve been HODLing for years – it’s now possible!

Take the next step in turning your crypto gains into your dream home. Schedule a consultation with us today to discuss your goals and devise a personalized strategy. We’ll help you navigate the mortgage process with confidence, ensuring that your crypto assets are presented in the best light to lenders. You can also visit our partner site SidWasHere.com for more insights and guidance on innovative real estate financing.

Don’t let old rules keep you from using every resource at your disposal. Your crypto could be the key to unlocking your next property investment. Get in touch with us, and let’s explore how to make it happen. Your homeownership journey in the crypto era starts now – we’re here to help you every step of the way.

Julie Gates

Julie Gates is a real estate investor first, broker second. She has been investing in Savannah, GA since 2004 and has built a 20-year portfolio across self-storage, short-term rentals, long-term rentals, and commercial real estate. Julie is a licensed real estate broker at RE/MAX Accent, co-author of The 30-Day Stay (BiggerPockets Publishing, 2023), a Forbes Business Council member, a regular contributor to Easy Street Capital, a Cornell-certified revenue manager, a graduate of Goldman Sachs 10,000 Small Businesses, and an active SubTo member. She founded Team 912 to provide investor-grade representation in the Savannah market, and also owns Sid Was Here, a Savannah property management company built for investors.

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