Crypto for a Down Payment? Fannie Mae Just Changed the Rules

Crypto is officially entering the housing market—and borrowers may soon be able to use cryptocurrency as collateral for a mortgage without selling it first. Tim Lucas and Craig Berry break down how this new policy works, who benefits most, and what it could mean for the future of homebuying.In this episode you’ll learn:How crypto can be used for a down payment: Borrowers can pledge cryptocurrency as collateral through a structured trust while still securing a traditional dollar-based mortgage.Why you don’t have to sell your crypto: This approach allows buyers to avoid triggering capital gains taxes and keep potential upside if their crypto increases in value.How the two-loan structure works: A second loan is secured by the crypto, providing funds for the down payment while the primary mortgage remains a standard home loan.Why there are no margin calls: Even if crypto values drop, borrowers won’t face margin calls as long as they stay current on their loan payments.Which cryptocurrencies are currently allowed: Early programs are limited to stablecoins like USD Coin, reducing volatility risk for lenders.Why this is a major shift for the industry: This marks one of the first times a government-backed entity has embraced crypto in mortgage underwriting.Who stands to benefit most: Younger buyers, who are more likely to hold crypto, may gain a new path to homeownership.The potential risks to watch: Expanding beyond stablecoins or loosening rules could introduce new risks for lenders and taxpayers.What this means for lenders: More institutions may begin offering crypto-backed mortgage products now that guidelines are emerging.The big question: Is this a smart evolution in home financing—or the start of a riskier trend?Read the full article: https://www.mortgageresearch.com/articles/fannie-mae-to-accept-pledged-cryptocurrencies-as-mortgage-down-payments/