FHFA Considers Bitcoin for Mortgage Qualification

The U.S. Federal Housing Finance Agency (FHFA) is considering a new rule that could allow cryptocurrency holdings, including Bitcoin, to be factored into mortgage qualification. This development has sparked significant interest from industry leaders, including Cathie Wood, CEO of ARK Invest, and Michael Saylor, who believe this proposal could legitimize Bitcoin in mainstream financial systems.

Cathie Wood stated that the inclusion of crypto assets in mortgage evaluations may reshape how borrowers use digital assets for securing home loans. This move could benefit Bitcoin holders seeking to leverage their holdings without converting them to fiat. The FHFA’s proposal aims to explore the use of cryptocurrency holdings as part of a borrower’s financial profile. Current mortgage systems assess factors like credit history, employment, and income. These requirements often exclude individuals who hold significant digital wealth without steady income streams.

The rule could open a new pathway for crypto investors to qualify for mortgages without needing to sell their assets. According to Bill Pulte, the plan involves examining how digital assets can contribute to mortgage eligibility. This could mark a departure from the long-standing model used by lenders. It would allow Bitcoin to be recognized as wealth when assessing a borrower’s ability to repay a loan.

Cathie Wood indicated that the FHFA’s plan may strengthen Bitcoin’s legitimacy within established financial frameworks. If implemented, the rule could bring broader acceptance of cryptocurrency as a recognized asset class. Wood stated that integrating Bitcoin into home loan evaluations may deepen its connection to traditional financial systems. She explained that this move could raise Bitcoin’s utility beyond speculative investment and into areas like property financing.

Michael Saylor, another industry figure, expressed similar thoughts. He has called for Bitcoin to be viewed as a legitimate form of capital. Saylor believes the asset should serve as collateral in mortgage deals. He said many Bitcoin holders struggle with proving income, which complicates mortgage approval. This new direction could bridge the gap between digital wealth and mortgage lending systems. The rule, if adopted, could bring structural changes to both the housing and crypto markets. It may create new liquidity options for investors, enabling them to back mortgages without liquidating digital holdings.

Experts say the inclusion of Bitcoin could encourage more institutions to participate in the crypto market. It may also support long-term holding strategies, allowing investors to use crypto for wealth-building without converting to cash. The FHFA has yet to confirm a timeline for implementing the rule, but review processes are underway.