August 14, 2025
5 min read
Michael P. McKinney
Will cryptocurrency become more common in buying Lower Hudson Valley homes? What to know
Will digital currency — cryptocurrency — become a more common component of buying homes in the Hudson Valley? A non-scientific poll of Lower Hudson Valley real estate professionals indicates that digital currency is not yet widely used in home sales. A spokesperson for Houlihan Lawrence said they were not aware of any cryptocurrency transactions. Vlora Slejdi, president of the Hudson Gateway Association of Realtors, said cryptocurrency use in home sales is not prevalent and she has not heard of any such transactions in the immediate area. Agents from two other local firms also reported no home listings involving cryptocurrency. Broadly, reports of homebuyers selling crypto assets to obtain cash for traditional mortgage lenders are not new. Lenders typically consider assets such as cash and stocks when approving mortgages.Potential changes on the horizon
This could change. In late June 2025, the Federal Housing Finance Agency (FHFA) directed the government-sponsored enterprises Fannie Mae and Freddie Mac to begin considering Bitcoin (BTC) and other cryptocurrencies as part of a prospective homebuyer's assets. This would allow buyers to retain digital currency as an asset rather than converting it to cash. However, this directive comes with caveats and requires formal proposals from both entities before any policy changes are implemented.Current policies of Fannie Mae and Freddie Mac on cryptocurrency
- Freddie Mac: Any cryptocurrency used as a source of funds for mortgage transactions must be exchanged for U.S. dollars.
- Fannie Mae: Virtual currency must be exchanged into U.S. dollars before it can be used for down payments, closing costs, or reserves. Documentation is required to verify the conversion and the funds must be held in a regulated U.S. financial institution. Virtual currency cannot be used for earnest money deposits.
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What are Fannie Mae and Freddie Mac?
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs) that buy mortgages from banks and package them into securities sold to investors. They help stabilize mortgage markets and protect housing during economic stress.Which cryptocurrencies would be applicable?
The FHFA directive applies to cryptocurrencies "evidenced and stored on a U.S.-regulated centralized exchange," allowing some flexibility for risk and market conditions. Centralized exchanges like Coinbase could benefit significantly from this policy.Specialty lenders for digital currency
Some firms specialize in cryptocurrency-backed mortgages, where borrowers use crypto as collateral without selling it. These loans often have higher interest rates and risks but can speed up approval and expand homeownership opportunities. Josip Rupena, CEO of Milo, a crypto mortgage specialist, called the FHFA directive a pivotal shift, noting that 12% to 15% of recent first-time homebuyers sold digital assets to qualify for mortgages.Real estate firms accepting cryptocurrency
Christie’s International Real Estate Southern California launched a cryptocurrency division in July 2025, featuring a $1+ billion portfolio of luxury properties accepting digital currency payments, including a $118 million Los Angeles-area home. They cited surging Bitcoin prices and new pro-crypto legislation as drivers for luxury real estate becoming a preferred asset for digital wealth holders. Deloitte projects the tokenized real estate market could reach $4 trillion by 2035, underscoring the growing importance of cryptocurrency in property transactions.FAQ: Will cryptocurrency be used more for buying homes in the Lower Hudson Valley? Q: Is cryptocurrency currently used for home purchases in the Lower Hudson Valley? A: Based on a survey of local real estate professionals, cryptocurrency is not widely used for home sales in the Lower Hudson Valley at this time. Q: What is the FHFA directive regarding cryptocurrency and mortgages? A: The FHFA has directed Fannie Mae and Freddie Mac to consider cryptocurrencies as part of a homebuyer's assets, allowing buyers to retain digital currency without immediately converting it to cash. Q: What are the current policies of Fannie Mae and Freddie Mac on using cryptocurrency for mortgages? A: Both Fannie Mae and Freddie Mac currently require that virtual currency be exchanged into U.S. dollars before it can be used for down payments, closing costs, or reserves. Q: What are Fannie Mae and Freddie Mac? A: Fannie Mae and Freddie Mac are government-sponsored enterprises that play a crucial role in stabilizing the mortgage market by purchasing mortgages from lenders and packaging them into securities. Q: Which cryptocurrencies are likely to be considered under the new FHFA directive? A: The directive applies to cryptocurrencies that are evidenced and stored on a U.S.-regulated centralized exchange. Q: Are there companies that offer mortgages specifically for cryptocurrency holders? A: Yes, some firms specialize in cryptocurrency-backed mortgages where digital assets can be used as collateral without being sold. Q: What is the projected growth of the tokenized real estate market? A: Deloitte projects that the tokenized real estate market could reach $4 trillion by 2035. Q: What percentage of first-time homebuyers have sold digital assets to qualify for mortgages? A: According to Milo's CEO, 12% to 15% of recent first-time homebuyers have sold digital assets to meet mortgage requirements.
Crypto Market AI's Take
The real estate sector is beginning to acknowledge the growing influence of digital assets. As regulatory frameworks evolve and institutions like Fannie Mae and Freddie Mac explore incorporating cryptocurrencies, we anticipate a gradual shift. This could involve not only using crypto for down payments but also as a direct asset for collateralizing mortgages, expanding accessibility for digital asset holders. This trend aligns with the broader digital transformation of finance, where innovations in blockchain and AI are continuously creating new opportunities and efficiencies. For instance, our platform leverages AI to provide sophisticated market analysis and trading strategies, helping users navigate the complexities of the digital asset space.More to Read:
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