The Surprising Power of Bitcoin in Mortgages for US Housing

Key Points

• Mortgage stress now worse than 2008 levels, says analysts.
• FHFA accepts custodial Bitcoin for mortgage eligibility.
• Self-custodied Bitcoin still excluded from mortgage asset counts.
• Crypto’s role in real estate grows, but remains limited.

The U.S. housing market is in crisis, and now, some are asking if Bitcoin in mortgages could be part of the solution. As economic pressures mount, the cost of buying a home is rising far faster than household incomes.

New data shows that mortgage stress across the U.S. has surpassed levels seen during the 2008 financial crisis. According to Google Trends, searches for “help with mortgage” have hit record highs, outpacing even the darkest moments of the last recession.

Folks – this is why no one is buying houses.

Income growth is 21.9% since 2019.

Mortgage cost growth is 91.9%.

Costs to buy have gone up 4x faster than incomes.

Not sustainable. pic.twitter.com/EOU3SfHh0K

— Nick Gerli (@nickgerli1) September 15, 2025

Housing analyst Nick Gerli reports that since 2019, mortgage costs have surged 91.9%, while incomes have only grown 21.9%. The imbalance has pushed affordability out of reach for many families.

“Costs to buy have gone up four times faster than incomes. Not sustainable,” Gerli warned.

Home owners are struggling to. https://t.co/jMaMY0wNdX

— Neil (@neilfromsa) September 17, 2025

Rising late rent payments are also putting pressure on the system, indicating that financial stress is spreading from renters to homeowners. As credit conditions tighten, fewer Americans can qualify for home loans, and the American dream of homeownership is slipping away.

Late rental payments are skyrocketing pic.twitter.com/3PZDh9HKKw

— Darth Powell (@VladTheInflator) September 16, 2025

In this challenging environment, the Federal Housing Finance Agency (FHFA) has made a bold move: recognizing Bitcoin in mortgages for the first time ever.

Meanwhile, financial innovation continues across the crypto space. New developments like the Bitwise AVAX ETF and trending projects such as Pump.fun’s livestream hype highlight how blockchain is creeping into every corner of finance, including real estate.

JUST IN 🚨: Google Searches for “help with mortgage” has now surpassed the peak of the 2008 Global Financial Crisis pic.twitter.com/YqcIOBLWxl

— Barchart (@Barchart) September 16, 2025

FHFA Recognizes Bitcoin in Mortgages, With Conditions

In June, the FHFA announced a major update to its guidelines. For the first time, homebuyers applying for loans through Fannie Mae or Freddie Mac can list Bitcoin in mortgages as part of their asset profile, but only under strict rules.

To qualify, Bitcoin holdings must be kept in custodial wallets on U.S.-regulated crypto exchanges. This includes platforms like Coinbase or Kraken. Any Bitcoin held in cold storage, hardware wallets, multisig setups, or other forms of self-custody does not count toward the asset evaluation.

It looks like bitcoin held in self-custody will NOT count as an asset for consideration on home loans.

This is a mistake @pulte, self-custody is fundamentally aligned w/American values. It’s trivial to prove ownership of BTC in self-custody.

I’m happy to explain how & help! pic.twitter.com/lRNSC7QPJ8

— Nick Neuman (@Nneuman) June 25, 2025

“It looks like Bitcoin held in self-custody will NOT count as an asset for consideration on home loans. This is a mistake,” said Nick Neuman, a self-custody advocate.

Neuman argues that this policy undermines Bitcoin’s core value of self-sovereignty, a principle widely respected in the crypto community. Critics warn that this move could signal a trend toward recognizing crypto only when it fits into a traditional, regulated framework.

Even though Bitcoin in mortgages is now formally recognized, it comes with other limits too. Borrowers cannot pledge their crypto as collateral, and it only counts as part of the net worth assessment, not as liquidity or guarantee for repayment.

Still, some in the industry see the FHFA’s move as a necessary first step. According to Swan Bitcoin, a crypto financial services firm:

“This is a win, but a limited one. It acknowledges Bitcoin’s value but only within a system built for surveillance and control.”

Bitcoin is being added to the mortgage system.

That’s a win—but don’t let it fool you.

If your Bitcoin isn’t custodied in a way the state can see, it still “doesn’t exist.”

Let’s talk about the real frontier: self-custody in a captured system 🧵👇 pic.twitter.com/nWwmrWrLBB

— Swan (@Swan) June 30, 2025

Projects pushing decentralization, like those discussed in DAO governance models, highlight how Bitcoin’s self-custody principles clash with the custodial model now favored by regulators.

What Bitcoin in Mortgages Means for Crypto and Real Estate

So, what does this all mean for the average crypto holder dreaming of homeownership?

On the positive side, Americans who are asset-rich but cash-poor can now use Bitcoin in mortgages to qualify for loans they previously couldn’t access. If someone has significant crypto holdings but limited fiat savings, this policy could open doors that were once shut.

It also marks a turning point in how government institutions view crypto. The fact that a federal agency now recognizes Bitcoin in mortgages is a huge milestone in crypto’s journey toward mainstream acceptance.

However, it’s important to note what hasn’t changed. The scope of this policy is still very narrow. Most Bitcoin holders, especially those who prioritize self-custody, will see no real benefit. The housing market itself is still suffering from:

• Rising mortgage interest rates

• Wage stagnation

• Tight credit access

• Surging late rent payments

These structural problems aren’t fixed by recognizing Bitcoin in mortgages. At best, this move helps a small segment of the population — but it’s far from a game-changer for the housing crisis as a whole.

Still, the inclusion of Bitcoin in mortgage eligibility shows how traditional finance is slowly adapting. While crypto was once seen as an outsider, it’s now being cautiously embraced, on tightly controlled terms.

Some see this as progress. Others see it as compromise. But everyone agrees: the conversation around Bitcoin in mortgages is just beginning.

More broadly, the growing fusion of TradFi and crypto is reflected in other parts of the market, like the Crypto MAG7 trend that mimics tech stock dominance, or predictions of a crypto market top as institutional money pours in.

The Bigger Picture for Bitcoin in Mortgages

While the FHFA’s move won’t solve the housing crisis overnight, it shows a clear shift in government thinking. There was a time when crypto wasn’t taken seriously. Now, Bitcoin in mortgages is part of the official rulebook.

For now, its use will likely remain niche. But over time, as crypto becomes more widely adopted and better understood, we could see broader integration, including the eventual recognition of self-custodied crypto assets.

That would be a major win for the principle of financial self-sovereignty, and a significant shift in how Americans build wealth and access credit.

For now, the takeaway is this: Bitcoin in mortgages is real. It’s limited. But it’s also historic.