T
he use of cryptocurrency in mortgage transactions is currently limited by Fannie Mae and Freddie Mac, which require it to be converted to USD. However, this may change as the Federal Housing Finance Agency's director has instructed them to consider Bitcoin and other cryptocurrencies as part of a homebuyer's assets. This would allow buyers to retain their digital currency rather than converting it to cash.

    Some real estate professionals in the Lower Hudson Valley have not seen widespread use of cryptocurrency in home sales, but this could change with the proposed policy changes. A spokesperson for Houlihan Lawrence and the president of the Hudson Gateway Association of Realtors said they were not aware of any cryptocurrency transactions in the area.

    Fannie Mae and Freddie Mac's current policies on crypto require it to be exchanged for USD if used as a source of funds for a mortgage transaction. However, the FHFA directive would allow them to consider cryptocurrency as an asset, with proposals needing to be submitted for approval.

    Specialty lenders exist that cater to digital currency mortgages, where people can use their cryptocurrency as collateral to get financing. These mortgages often have higher interest rates and risks than traditional mortgages but can provide faster approval processes and open up home ownership to more people.

    Christie's International Real Estate Southern California has launched a cryptocurrency division accepting digital currency for luxury properties, citing the growing trend of crypto wealth being invested in tangible assets like real estate. The firm believes that tokenized real estate will reach $4 trillion by 2035, making this move prescient.