Newrez Pioneers Crypto-Backed Mortgages in 2026: What Investors Should Know

Newrez is the first major U.S. mortgage lender to recognize eligible crypto assets for mortgage qualification without liquidation according to its announcement.

The initiative will allow borrowers to use Bitcoin, Ethereum, and stablecoins as collateral in nonagency mortgage programs as reported.

Approximately 45% of Gen Z and millennial investors own crypto, many of whom are entering their prime homebuying years according to data.

The mortgage landscape is evolving to embrace a new asset class: cryptocurrency. For the first time, major lenders are recognizing crypto as a legitimate form of collateral in the homebuying process. Newrez, a top five mortgage lender, is leading the charge by integrating crypto into its mortgage qualification framework. This move not only reflects broader adoption of digital assets but also caters to a generation of investors who are increasingly asset-rich in crypto but liquidity-constrained in traditional markets.

As of February 2026, eligible crypto assets such as Bitcoin and Ethereum can now be used to verify income and assets during the mortgage underwriting process. This is a game-changer for a demographic that may have been excluded from homeownership due to the inability to liquidate their holdings for down payments or mortgage requirements.

Can Crypto Be Used to Qualify for a Mortgage in 2026?

Until recently, crypto was largely excluded from traditional mortgage qualification models. Most lenders required borrowers to liquidate their digital assets to use them as down payments or proof of income. However, Newrez's new policy removes that barrier, allowing eligible crypto assets to be treated similarly to stocks, bonds, or real estate equity in the mortgage process.

The initiative is part of Newrez's Smart Series product suite and is available across nonagency mortgage programs. Borrowers must hold their crypto through U.S.-regulated exchanges or institutions to qualify, ensuring a level of oversight and compliance with federal standards. This marks a significant shift in the mortgage industry's approach to alternative asset classes and reflects the broader trend of financial institutions adapting to new technologies.

Why Is This a Strategic Move for Newrez and the Market?

Newrez is positioning itself at the intersection of innovation and traditional finance. By integrating crypto into its mortgage offerings, the company is catering to a rapidly growing segment of the population—Gen Z and millennial investors who are active in the crypto space. These borrowers are often tech-savvy, investment-diverse, and asset-rich, but may not have the liquidity to meet traditional mortgage requirements.

The move also aligns with the broader regulatory environment. Federal housing regulators have started to issue guidance that recognizes crypto as an asset class in loan calculations. In tandem with easing regulations, financial institutions like JPMorgan Chase are also exploring ways to incorporate crypto into secured lending, signaling a larger industry shift.

For investors, Newrez's decision may be a bellwether for future growth in crypto-related financial services. As more lenders adopt similar policies, the use of digital assets in traditional finance could expand, potentially increasing Newrez's market share and positioning it as a leader in the mortgage industry's digital evolution.

What Risks or Limitations Should Investors Be Aware Of?

While the move is a positive step for crypto adoption, it is not without its limitations. For one, the program is currently limited to nonagency mortgage programs, meaning it won't apply to all loan types. Additionally, eligibility for using crypto in mortgage qualification is contingent on the borrower's ability to demonstrate a stable income and a well-documented investment history with regulated institutions.

There are also risks tied to the volatility of crypto assets. Unlike traditional investments, crypto can experience sharp price swings, which could impact the borrower's ability to maintain the required collateral. Lenders like Newrez will need to develop robust risk management strategies to address these challenges.

Moreover, regulatory clarity is still evolving. While the current administration and federal regulators are taking a more crypto-friendly stance, future changes in policy could affect how crypto is treated in mortgage programs. Investors should monitor regulatory developments closely, especially as they relate to the broader financial industry's approach to digital assets.

What to Watch Next

As of 2026, the mortgage industry is beginning to adapt to crypto as a legitimate asset class. Newrez's initiative is just the beginning. Investors should watch for further developments from other major lenders, particularly in how they integrate crypto into their underwriting models. Additionally, regulatory updates from the Federal Housing Finance Agency and the Consumer Financial Protection Bureau will be key indicators of whether this trend will become more widespread.

The global crypto market is now valued at over $3 trillion, and with 45% of Gen Z and millennial investors owning crypto, the potential for growth in this space is substantial. As more financial institutions explore ways to incorporate crypto into their lending and investment frameworks, the market could see a broader shift toward digital asset adoption in traditional finance.

For now, Newrez's move is a significant milestone, and it could signal a new era for non-QM (non-qualified mortgage) originations and the broader mortgage industry's approach to alternative asset classes.