Americans Can Now Use Crypto to Qualify for a Mortgage—What Changes?
Summary
Americans can now use cryptocurrency assets, like bitcoin and USDC, as collateral to qualify for mortgages through new rules set by Fannie Mae and the Federal Housing Finance Agency. This change allows crypto holders to fund home down payments with their digital assets instead of selling them for cash.Key Facts
- Over 70 million Americans own cryptocurrency, about 30% of adults in the U.S.
- Previously, crypto owners had to convert their crypto to regular money or find buyers accepting crypto to buy homes.
- Fannie Mae, guided by the FHFA, now accepts crypto held on regulated U.S. exchanges as mortgage reserves.
- Homebuyers can take a traditional Fannie-backed mortgage plus a separate crypto-backed loan for the down payment.
- The crypto used as collateral cannot be traded while the loan is active.
- The collateral value must be at least 250% of the loan if using bitcoin, or 125% if using USDC stablecoin.
- Borrowers using Coinbase for crypto loans and Better mortgage company can get lender credits up to $10,000.
- This is the first time Fannie Mae accepts crypto-backed mortgages, increasing options for crypto holders to buy homes without selling their crypto.
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