Newrez, one of the largest mortgage lenders and servicers in the United States, has announced plans to begin recognizing cryptocurrency holdings as part of mortgage qualification starting February 2026. The move marks a major step in the integration of digital assets into the traditional housing finance system.
Under the new policy, eligible borrowers will be allowed to use their cryptocurrency assets to verify reserves and, in certain cases, help estimate income for mortgage applications—without being forced to liquidate their holdings.
Crypto Assets Enter the Mortgage Qualification Process
According to Newrez, borrowers will be able to use holdings in Bitcoin (BTC), Ethereum (ETH), USD-pegged stablecoins, and spot crypto exchange-traded funds (ETFs) when applying for a mortgage. These assets will be factored into underwriting assessments through market-adjusted valuations designed to account for crypto price volatility.
The initiative will be available exclusively through Newrez’s Smart Series product line, which focuses on non-qualified mortgage (non-QM) loans. These loans are designed for borrowers who fall outside traditional government-backed lending criteria, such as self-employed individuals or those with non-standard income streams.
Targeting Gen Z and Millennial Homebuyers
Newrez says the decision is driven largely by shifting demographics. Internal data cited by the lender shows that approximately 45% of Gen Z and Millennial investors hold cryptocurrency, making them a key segment of first-time homebuyers.
Historically, borrowers holding digital assets were often required to sell their crypto in order to prove liquidity or reserves. This process frequently triggered taxable events and removed potential buyers from the housing market altogether.
Newrez President Baron Silverstein described the change as a necessary evolution in modern lending.
“We believe that now is the right time to prudently integrate eligible crypto assets into modern mortgage lending—enabling consumers to preserve investments while accessing innovative financing solutions,” Silverstein said.
Strict Risk Controls and Regulatory Guardrails
Despite the expanded flexibility, Newrez emphasized that the program will operate under strict compliance standards.
Key requirements include:
Down payments and closing costs must still be paid in US dollars
Crypto assets will be discounted using risk-adjusted valuation models
All eligible crypto must be held with US-regulated custodians
This means assets stored in self-custody wallets, cold storage, or decentralized finance (DeFi) protocols will not qualify. Only holdings on compliant centralized exchanges, regulated FinTech platforms, or SEC- or FINRA-regulated brokerages will be accepted.
Newrez Chief Commercial Officer Leslie Gillin said the initiative balances innovation with responsibility.
“Our mission at Newrez is to do everything possible to make home happen, and this innovation marks another step in creating new pathways to homeownership—giving consumers flexibility and control while maintaining prudent lending standards,” Gillin stated.
Aligned With Broader Regulatory Shifts
The announcement comes amid a changing regulatory environment in the United States. In June 2025, the Federal Housing Finance Agency (FHFA) issued guidance instructing housing finance giants Fannie Mae and Freddie Mac to explore ways of incorporating cryptocurrency into mortgage risk assessments.
That directive, part of a broader policy shift under the Trump administration, signaled a warming stance between federal housing regulators and the digital asset industry. While the FHFA has not yet mandated crypto-backed mortgages, it has opened the door for lenders like Newrez to experiment within regulated frameworks.
What This Means for the Crypto and Housing Markets
Newrez’s move reflects a growing recognition of cryptocurrency as a legitimate component of household wealth. While the policy stops short of embracing DeFi or self-custody, it represents a meaningful bridge between traditional finance (TradFi) and digital assets.
If successful, similar programs could be adopted by other lenders, potentially reshaping how younger, crypto-native generations access homeownership in the coming years.
Disclaimer
This article is for informational purposes only and does not constitute financial, legal, or investment advice. Cryptocurrency and real estate markets involve risk and volatility. Readers should conduct their own research and consult qualified professionals before making any financial decisions. The author assumes no responsibility for actions taken based on this content.
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