Mortgage lender Rate has launched RateFi, a nationwide mortgage product allowing 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 a broader shift in financial services as lenders experiment with integrating digital assets into traditional underwriting while remaining within established compliance frameworks. Under the program, qualified borrowers can use verified cryptocurrency as reserves and, in some cases, as qualifying income, according to the company.
How the Cryptocurrency Mortgage Program Works
Rate said the program includes standard anti-money-laundering and know-your-customer checks. Down payments and closing costs must still be paid in U.S. dollars, though borrowers may convert crypto to meet those requirements.
The product operates within the company’s existing non-QM infrastructure rather than through conforming channels backed by Fannie Mae or Freddie Mac. The government-sponsored enterprises do not currently provide broad guidance allowing cryptocurrency to count as qualifying income in standard agency loans.
Kate Amor, executive vice president 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. She indicated that RateFi represents the first phase of a broader digital asset lending strategy that the company plans to expand over time.
Responding to Growing Digital Asset Wealth
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 beginning to adapt to borrowers who may prefer not to liquidate long-term holdings to qualify for a mortgage.
Historically, most lenders have required borrowers to convert cryptocurrency into cash before it can be counted toward mortgage qualification. That process can trigger capital gains taxes, lock in losses during market downturns or reduce exposure to assets borrowers believe will appreciate.
Additionally, RateFi seeks to reduce that friction by recognizing verified digital holdings as part of a borrower’s financial profile without requiring full liquidation. The product is not entirely without precedent, as other lenders including Newrez have introduced programs that allow cryptocurrency to factor into qualification, though most remain limited to non-QM or portfolio channels.
The Non-QM Structure and Its Limitations
Because government-sponsored enterprises do not broadly recognize crypto 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 the GSEs.
That structure limits scale compared to agency lending, but it also provides a testing ground for innovation. For Rate, the strategy appears incremental rather than disruptive, as borrowers still make down payments in dollars and loans are underwritten using traditional risk frameworks.
Meanwhile, cryptocurrency is treated primarily as reserves or supplemental income rather than as a new payment rail. President Shant Banosian emphasized that the product runs within Rate’s existing underwriting and pricing systems rather than creating a separate crypto lending channel.
Stablecoin Considerations and Risk Factors
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.
However, lenders remain cautious because stablecoins can lose their peg during periods of market stress. Liquidity depends on issuer reserves and the mechanisms for redeeming tokens, and exchanges can halt withdrawals.
In contrast to traditional assets, blockchain-based holdings may introduce additional verification steps. These include confirming wallet ownership, validating exchange accounts and reviewing transaction history, according to industry standards.
Implications for the Broader Housing Market
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 boxes. The symbolic significance may be larger as digital assets move deeper into mainstream finance.
As younger, crypto-forward buyers age into peak homebuying years, lenders face increasing pressure to modernize balance sheet analysis that was built around W-2 income and brokerage statements. The larger strategic question is whether products like RateFi remain niche offerings within non-QM channels or represent early steps toward broader normalization.
For real estate agents and brokers, buyers with significant digital holdings may have more options to qualify without restructuring their portfolios. At the same time, these loans remain specialized and subject to stricter documentation and pricing dynamics than conventional mortgages.
Meaningful expansion of cryptocurrency mortgage programs would likely require clearer guidance from federal regulators or eventual recognition by the GSEs. Until such regulatory clarity emerges, crypto-recognition programs will remain largely within portfolio and private-market structures.