Bitcoin in Mortgages? The U.S. Housing Giant Just Made It Real

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Bitcoin Enters the Mainstream—via Mortgage

The moment I saw the FHFA announcement, I paused my Python backtest. Not because of volatility—but because of institutional intent. Bill Pulte, grandson of a housing titan and now head of the Federal Housing Finance Agency, just opened the door for Bitcoin to become an official part of U.S. mortgage evaluation.

This isn’t a tweet from a celebrity investor. It’s regulatory infrastructure shifting.

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Why This Matters: The Hidden Power Behind Fannie Mae & Freddie Mac

Let me be clear: you don’t need to own a home to care about this.

Fannie Mae and Freddie Mac aren’t banks—they’re the backbone of 70% of America’s mortgage market. They buy loans from lenders, package them into securities, and backstop liquidity.

If they accept Bitcoin as collateral? That means every lender across the country can now treat crypto not just as an asset—but as a financial instrument with real-world utility.

It’s like upgrading from using gold in your jewelry to using it in ATM machines.

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The Real Risk: Volatility & Haircuts (Spoiler: They’ll Be Big)

I’ve audited enough smart contracts to know—no one trusts volatility without safeguards.

So yes, if your Bitcoin is used for mortgage approval, expect severe haircuts—think 30–50%. Lenders won’t count your full \(100k BTC stash; they’ll likely base lending on \)50k–$70k after discounting for price swings.

But here’s where it gets interesting: stablecoins like USDC or USDT might face fewer restrictions. Their peg-to-dollar stability could make them acceptable even before full regulatory greenlight—especially given their role in DeFi yield strategies already being used by institutions.

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Private Players Are Already Ahead (And Making Money)

While regulators debate semantics, companies like Milo Credit have been doing this since 2022—offering crypto-backed mortgages without forcing liquidation.

They’ve issued over $65 million in loans using BTC and ETH as collateral—with borrowers retaining full ownership while accessing cash flow via high-LTV financing (up to 100%).

Yet their loans can’t be sold to Fannie Mae or Freddie Mac—their risk stays on the books. Hence higher rates and tighter terms.

This new policy could change that overnight: private innovation meets public validation.

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My Take: Crypto Isn’t Just Digital Gold Anymore—it’s Infrastructure Now

When I first studied blockchain at LSE, we mocked “crypto real estate” proposals as fantasy economics. Now? We’re building actual financial plumbing with it—as collateral in one of America’s most conservative sectors: housing finance.

This is less about price pumps and more about legitimacy—the final step toward universal adoption: systemic acceptance by legacy institutions that once called crypto ‘speculative nonsense’.

Even my uncle still thinks Bitcoin is ‘a scam run by tech bros.’ But now his daughter may qualify for her first mortgage using only her BTC holdings—and that changes everything.