Homebuyers may soon have a new way to purchase homes using cryptocurrency.
The Trump administration is pushing for a policy that allows buyers to include cryptocurrency in federal mortgage applications without converting it to cash.
The directive requires Fannie Mae and Freddie Mac to prepare for counting cryptocurrency as an asset for single-family home mortgage applications.
Previously, crypto had to be converted to dollars first.
Economics professor Phillip Post from Florida SouthWestern State College shared his insights on this potential change.
“There has to be a level of trust that this is not going to drop 50% tomorrow after I just loaned against it today. And so, I think economists in general don’t think there’s a big deal about using it. If we can address this issue of, how do we make it trustworthy?” said Post.
The key challenge is making cryptocurrency trustworthy due to its volatility, which fluctuates with supply and demand.
The Federal Housing Finance Agency’s directive mandates that Fannie Mae and Freddie Mac find ways to limit this volatility, so lenders can consider cryptocurrency a reliable asset.
Madison Hanson, president of Florida Gulf Coast University’s Crypto Club, expressed her thoughts on the matter.
“I’m really thinking that people will be approved a lot more for mortgages because they’re recognizing Bitcoin, and I think that that’s gonna help my generation. I don’t think we were planning on buying a house anytime soon, but with this option, we might be able to sooner than we thought,” said Hanson.
The goal of this initiative is to make home buying more accessible.
Post also mentioned the broader economic implications of this move.
“If you want the traditional owner-occupied single-family housing, you’ve got to find a way for people to afford them, get the loans and get into the house. And this is a way to do that, by moving beyond just stocks and bonds into cryptocurrency,” said Post.
Hanson believes in the future of cryptocurrency despite the skepticism.
“I truly think that as more and more institutions start bringing Bitcoin into it, it’s going to just become the right thing to do, and institutions and banks will have to allow it, because it’s just the only way that people are going to be able to afford housing,” said Hanson.
The move also signals President Trump’s vision to “make the United States the crypto capital of the world.”
Post believes moving to cryptocurrency strengthens the U.S. dollar.
“My inkling is that if we do not begin to move in this direction, it’ll be easier for other countries to supplant the dollar as the global currency,” he said.
The timeline for these changes is still uncertain.
Fannie Mae and Freddie Mac must submit assessment proposals to their boards of directors for approval, followed by a review by the Federal Housing Finance Agency.
WINK News will continue to provide updates on this developing story.
