The American housing market is undergoing a quiet revolution — one where real estate and digital assets are converging in unprecedented ways. Homebuyers and investors are increasingly exploring how cryptocurrency can help them enter or expand within the property market, while new financial models are emerging to bridge the gap between blockchain wealth and brick-and-mortar homes.
At the heart of this shift is a landmark policy change: Fannie Mae and Freddie Mac, the two largest mortgage financing entities in the U.S., will now consider cryptocurrency holdings as part of a borrower’s asset portfolio when evaluating mortgage applications. This means applicants may no longer need to liquidate their digital assets to qualify for a home loan — a major step toward mainstream financial integration.
This directive comes from William Pulte, head of the Federal Housing Finance Agency (FHFA) under the Trump administration, who announced the move as part of a broader vision to position the United States as a global leader in cryptocurrency innovation.
“This is the oldest asset class meeting the newest,” said David Doss, an investor who used crypto proceeds to fund a home purchase in New Jersey back in 2017. “The intersection of crypto and real estate is evolving fast.”
How Crypto Is Reshaping Homeownership
Traditionally, lenders assess a buyer’s financial stability through bank savings, stock portfolios, and steady income. Now, with digital assets gaining legitimacy, institutions are adapting. The FHFA’s new guidance signals that crypto — despite its volatility — can be treated like any other investment when determining creditworthiness.
This change responds to growing consumer behavior. According to a recent Redfin survey, 14% of homebuyers plan to sell cryptocurrency to cover down payments, up from just 5% in 2019. But many would prefer not to sell at all — especially to avoid triggering capital gains taxes.
That’s where new fintech solutions come in.
Borrowing Against Bitcoin: The Rise of Crypto-Collateralized Mortgages
Enter companies like Milo, founded by former Morgan Stanley advisor Josip Rupena. Milo offers a novel approach: use your bitcoin as collateral to secure a traditional home loan — no liquidation required.
Here’s how it works:
- A buyer wants to purchase a $1 million home.
- Instead of cash, they deposit $1 million worth of bitcoin into a secure custodial account managed by Milo.
- Milo provides the full $1 million in fiat currency to complete the home purchase.
- The buyer then repays Milo via a standard mortgage structure — typically at a slightly higher interest rate than conventional loans.
- Once the loan is paid off, the bitcoin is returned.
No taxes triggered. No assets sold. And full homeownership achieved.
Rupena has already underwritten $65 million in such loans, and he sees the FHFA’s new stance as validation of his model.
“This is the first step toward treating crypto like any other asset,” Rupena said. “Equal status means equal opportunity.”
Unlike traditional banks, Milo doesn’t require a down payment — financing 100% of the purchase price, something few lenders dare to do.
Flipping the Model: Using Home Equity to Buy Bitcoin
While some use crypto to buy homes, others are doing the reverse — using their home equity to acquire bitcoin.
Startups like Horizon and Sovana offer what amounts to a modern twist on home equity agreements. Instead of using home value for renovations or education, homeowners receive lump-sum cash in exchange for a share of future property appreciation — with one condition: the funds must be used to buy bitcoin.
For example:
- A homeowner with $500,000 in equity might receive $100,000 from a company like Horizon.
- That money goes directly into purchasing bitcoin.
- The company places a lien on the property and earns a percentage of both home value growth and bitcoin gains when the contract ends (often after 5–10 years).
- No monthly payments are required during the term.
Harry W. Prahl, a 35-year-old investor with multiple properties, is exploring this model with Sovana, a firm co-founded by a former Google executive.
“It’s a way to unlock business value without disrupting operations,” Prahl explained. “And not having to make monthly payments? That’s a killer feature.”
If bitcoin’s price drops, however, the homeowner may be required to cover the shortfall — adding risk alongside potential reward.
Core Keywords Driving This Trend
This evolving landscape revolves around several key concepts:
- Cryptocurrency mortgage
- Bitcoin collateral
- Home equity crypto loan
- Crypto real estate integration
- Digital asset lending
- Bitcoin-backed financing
- Fannie Mae crypto policy
- House as investment engine
These terms reflect both consumer search intent and the technological-financial hybrid now emerging in personal finance.
Frequently Asked Questions (FAQ)
Q: Can I really buy a house using only Bitcoin?
A: Not directly through most banks — yet. But companies like Milo allow you to use bitcoin as collateral for a fiat mortgage, enabling full home purchases without selling your crypto.
Q: Will using crypto as an asset affect my mortgage approval chances?
A: Under the new FHFA guidelines, Fannie Mae and Freddie Mac will consider crypto holdings as part of your net worth, potentially improving eligibility — though lenders may still scrutinize volatility.
Q: Are there tax implications when using crypto for real estate?
A: Only if you sell. Using crypto as collateral typically avoids capital gains taxes, making it an attractive option for long-term holders.
Q: What happens if Bitcoin’s value drops significantly during a loan term?
A: In some agreements — especially those involving leverage — borrowers may be required to deposit additional collateral or cover losses, depending on contract terms.
Q: Is it safe to put a lien on my home for crypto investments?
A: It carries risk. While no monthly payments may be required, losing equity or facing foreclosure is possible if markets decline or housing values drop.
Q: How widespread are these crypto-real estate products?
A: Still niche. Most users are high-net-worth individuals. Regulatory clarity and broader adoption will determine long-term scalability.
Risks and Realities
Consumer advocates remain cautious. Andrew Pizor, senior attorney at the National Consumer Law Center, warns:
“Putting a lien on your home to buy cryptocurrency is generally a bad idea. This is where you live — not a speculative trading account.”
Indeed, combining volatile digital assets with essential housing creates unique risks. A market crash could leave homeowners underwater on both their property and their crypto positions.
Still, proponents argue that informed, wealthy investors should have access to innovative tools — especially when traditional liquidity options are limited.
The Bigger Picture: Policy Meets Innovation
The FHFA’s decision marks a philosophical shift in how government-backed institutions view digital assets. Previously risk-averse after the 2008 crisis, Fannie Mae and Freddie Mac are now being steered toward innovation under Pulte’s leadership.
He claims the change follows “extensive research” and aligns with President Trump’s vision of making America the “crypto capital of the world.”
While implementation details remain sparse, the symbolic weight is clear: cryptocurrency is no longer fringe — it’s entering America’s financial mainstream.
Whether this leads to broader financial inclusion or increased systemic risk remains to be seen. But one thing is certain: homes are no longer just shelters. For some, they’re becoming engines for acquiring the world’s most disruptive digital asset.