Crypto Assets in Mortgage Underwriting: Will It Impact Your Clients?
It’s official: cryptocurrency has a seat at the mortgage table.
As of 2025, the Federal Housing Finance Agency (FHFA) has issued new guidance allowing cryptocurrency holdings from U.S.-regulated exchanges to be counted as part of borrower asset documentation for mortgages sold to Fannie Mae and Freddie Mac. (AP News)
For mortgage loan originators (MLOs), this is more than a headline–it’s a potential shift in who qualifies for financing, how you verify assets, and the conversations you have with borrowers.
What’s Changing?
Until now, crypto assets were often excluded from GSE-eligible mortgage underwriting because of volatility, verification challenges, and lack of clear regulation. (The Truth About Mortgage) Borrowers who had substantial crypto holdings often had to liquidate and season funds in a bank account before they could be considered.
Under new FHFA guidance, crypto assets:
Must be held in accounts with U.S.-regulated exchanges (think Coinbase, Gemini, Kracken—not offshore wallets) (Consumer Finance and Fintech Blog)
Can be documented similarly to other non-depository financial assets, such as investment accounts
Will still be subject to lender discretion for risk assessment and underwriting overlays (Consumer Finance and Fintech Blog)
While this doesn’t make crypto a replacement for income or remove volatility concerns, it adds another asset category for borrowers–especially those whose wealth is tied to digital currency.
Why This Matters for Mortgage Professionals
1. You may see more “crypto-rich, cash-light” borrowers qualify.
Tech professionals, freelancers, and younger buyers often have significant holdings in cryptocurrency rather than traditional savings. Now, these assets can help them meet reserve or down payment requirements.
2. Asset verification gets more complex.
You’ll need to understand the documentation process for crypto assets–exchange statements, proof of ownership, and possible liquidation plans–to ensure compliance.
3. Your advisory role just expanded.
Borrowers may not understand that crypto values fluctuate daily. Guiding them on timing, risk, and documentation can make or break the transaction.
Potential Client Scenarios
Example 1:
A self-employed borrower holds $150,000 in Bitcoin on Coinbase but only $10,000 in their checking account. Previously, they might have failed to meet reserve requirements. Now, with regulated crypto holdings recognized, they can qualify without liquidating months in advance.
Example 2:
A first-time homebuyer’s down payment is partially funded from Ethereum sold 10 days before closing. As long as the funds are documented from a regulated exchange, they can be used without the same seasoning timeline as before–subject to lender guidelines.
What You’ll Need to Adjust in Your Process
Verification Skills
Get familiar with crypto account statements from major U.S.-regulated exchanges. They don’t look like traditional bank statements, so knowing where to find balance history, transaction records, and account ownership details will save time.
Risk Conversations
Discuss the volatility factor openly with clients. A $50,000 crypto balance today could drop significantly before funding. Encourage them to consider early liquidation if market swings could jeopardize their approval.
Updated Intake Questions
Add “Do you hold any cryptocurrency assets?” to your borrower intake form. This ensures you capture opportunities early and tailor asset discussions to the borrower’s full financial picture.
Opportunities for MLOs
Revisit past denied files where strong crypto holdings could have tipped the scales.
Educate your referral partners so they can direct crypto-holding clients your way.
Market your expertise—highlight that you’re up-to-date on FHFA and GSE guidelines to stand out from less-informed competitors.
Risk & Limitations to Keep in Mind
Not all crypto is eligible–only assets held at U.S.-regulated exchanges
Volatility risk remains–borrowers may still be required to liquidate before closing (Washington Post)
Lender overlays could apply–some lenders may add stricter internal rules despite FHFA acceptance (Business Insider)
Staying Ahead
This change is a signal: asset diversity in underwriting is expanding. Just as VantageScore 4.0 is broadening credit access, crypto acceptance is another step toward including more of a borrower’s real financial profile.
Mortgage professionals who understand these changes–and can guide clients through them–will have a competitive advantage.
If you want to be ready for the next wave of asset-related underwriting changes, now’s the time to upskill. Mortgage Knowledge offers courses that keep you ahead of regulatory shifts, help you navigate new asset classes, and prepare you to serve a wider range of clients.
Final Word
The inclusion of crypto assets in mortgage underwriting isn’t just about adapting to a new rule–it’s about expanding your reach, strengthening client trust, and positioning yourself as a modern, informed advisor. Whether you’re working with tech-savvy buyers or seasoned investors, understanding how to navigate this change can help you close more deals in 2025 and beyond.
