Mortgage lender Rate has launched RateFi, a nationwide mortgage product that allows borrowers to use verified cryptocurrency holdings toward mortgage qualification without liquidating those digital assets. The Chicago-based lender announced Tuesday that RateFi is fully operational within its digital mortgage platform and available under its non-qualified mortgage guidelines. The move reflects growing recognition of cryptocurrency as a legitimate financial asset in traditional lending markets.
According to the company, qualified borrowers can use verified cryptocurrency as reserves and, in some cases, as qualifying income. However, down payments and closing costs must still be paid in U.S. dollars, though borrowers may convert crypto to meet those requirements. The program includes standard anti-money-laundering and know-your-customer checks and operates within Rate’s existing non-QM infrastructure.
Understanding the Cryptocurrency Mortgage Product
RateFi represents a shift in how lenders evaluate borrower assets in an increasingly digital economy. Kate Amor, EVP and head of enterprise products at Rate, said in a statement that digital assets are real assets, yet mortgage lending has treated them as invisible. The product aims to apply standard underwriting principles to modern financial realities while remaining within established lending standards.
Additionally, Rate President Shant Banosian emphasized that the product runs within existing underwriting and pricing systems rather than creating a separate lending channel. This integration approach aims to ensure consistency and compliance at scale, according to company statements.
Why Cryptocurrency Mortgages Are Emerging Now
Industry research cited by Rate suggests more than 10 percent of Americans hold digital assets, with some maintaining six- and seven-figure portfolios. As digital wealth grows, lenders are adapting to borrowers who prefer not to liquidate long-term cryptocurrency holdings to qualify for a mortgage. Meanwhile, traditional qualification processes have historically required conversion to cash before assets can be counted.
That liquidation requirement can trigger capital gains taxes, lock in losses during market downturns or reduce exposure to assets borrowers believe will appreciate. RateFi seeks to reduce that friction by recognizing verified digital holdings as part of a borrower’s financial profile without requiring full liquidation. However, the product is not entirely without precedent, as other lenders including Newrez have introduced similar programs within non-QM channels.
The Non-QM Framework
The non-qualified mortgage designation is crucial to understanding this product. Because government-sponsored enterprises do not broadly recognize cryptocurrency as qualifying income, lenders offering these programs must operate outside conforming guidelines. Non-QM loans allow more flexible underwriting but are typically funded through private capital markets rather than sold to Fannie Mae or Freddie Mac.
In contrast, conforming agency loans follow stricter guidelines that currently do not provide broad accommodation for digital assets. That structure limits scale compared to agency lending but provides a testing ground for innovation in mortgage finance. For Rate, the strategy appears incremental, with borrowers still making down payments in dollars and loans underwritten using traditional risk frameworks.
Stablecoin Considerations in Mortgage Lending
RateFi’s eligibility includes certain stablecoins, which are digital assets designed to maintain a 1:1 value with the U.S. dollar. Stablecoins such as USDC or USDT aim to reduce volatility compared to assets like Bitcoin or Ethereum. Nevertheless, lenders remain cautious about potential risks.
Stablecoins can “de-peg” during periods of market stress, according to industry analysis. Liquidity depends on issuer reserves and redemption mechanisms, and exchanges can halt withdrawals under certain circumstances. Furthermore, regulatory oversight of digital assets continues to evolve at both federal and state levels, creating additional compliance considerations for lenders.
Impact on Real Estate Professionals
For now, RateFi appears to target a specific borrower segment: crypto-heavy, self-employed or nontraditional applicants who may not fit neatly within agency underwriting parameters. However, as digital assets move deeper into mainstream finance and younger, crypto-forward buyers age into peak homebuying years, lenders face increasing pressure to modernize balance sheet analysis built around traditional W-2 income and brokerage statements.
The larger strategic question is whether cryptocurrency mortgage products like RateFi remain niche offerings within non-QM channels or represent early steps toward broader normalization of digital assets in housing finance. For agents and brokers, buyers with significant digital holdings may have more qualification options without restructuring their portfolios, though these loans remain specialized and subject to stricter documentation requirements.
Meaningful expansion of cryptocurrency mortgage programs would likely require clearer guidance from federal regulators or eventual recognition by the government-sponsored enterprises. Until regulatory frameworks evolve, these products will remain largely within portfolio and private-market structures rather than conforming loan channels.