Fannie Mae And Freddie Mac ORDERED To Consider Bitcoin As Collateral For Mortgages

Federal Housing Finance Agency director William J. Pulte ordered the two government-sponsored enterprises to prepare to consider Bitcoin for mortgage loan risk assessments. Fannie Mae And Freddie Mac ORDERED To Consider Bitcoin As Collateral For Mortgages

Meanwhile:

The US Federal Housing Finance Agency (FHFA) has ordered home mortgage purchasers Fannie Mae and Freddie Mac to consider how to count Bitcoin as assets in their risk assessments for some home loans.

FHFA director William J. Pulte told both of the government-sponsored enterprises (GSEs) in a letter on Wednesday to “prepare a proposal for consideration of Bitcoin as an asset for reserves in their respective single-family mortgage loan risk assessments, without conversion of said Bitcoin to U.S. dollars.”

The order means the two GSEs could consider potential borrowers’ Bitcoin holdings when they apply for a mortgage, which Pulte said “has not typically been considered” in mortgage risk assessments without first converting the Bitcoin to US dollars.

The FHFA has overseen Fannie Mae, or the Federal National Mortgage Association, and Freddie Mac — the Federal Home Loan Mortgage Corporation — since 2008, when both institutions were placed under government conservatorship in the aftermath of the 2008 financial crisis.

Fannie Mae and Freddie Mac have played a critical role in the US housing market since the subprime mortgage crisis, providing liquidity and stability by purchasing mortgages from lenders, which enables lenders to issue more loans.

Pulte said on X that the decision to include Bitcoin as part of the mortgage risk assessment came “after significant studying” and aligns with Donald Trump’s goal to make the US the “Bitcoin capital of the world.”

Pulte’s letter said the two enterprises should only consider Bitcoin “that can be evidenced and stored on a U.S.-regulated centralized exchange subject to all applicable laws.”

Bitcoin Is Gaining Acceptance As Mainstream Collateral In The United States

The decision to recognize Bitcoin as collateral in the mortgage process reflects the growing mainstream acceptance of digital assets in the United States.

As reported by Cointelegraph, JPMorgan is planning to allow select wealth management clients to use Bitcoin-based products, such as Bitcoin exchange-traded funds (ETFs), as collateral for financing.

In a separate development, Circle’s USDC stablecoin is set to become eligible collateral for futures trading starting next year, through a joint initiative by Coinbase Derivatives and Virginia-based clearinghouse Nodal Clear.

Though niche, there’s already a market for Bitcoin-backed mortgage loans, which allow Bitcoin holders to use Bitcoin and Ether to finance real estate transactions.

Mauricio Di Bartolomeo, co-founder of Bitcoin lending platform Ledn, told Cointelegraph that many Bitcoin holders have used their digital assets as collateral to purchase real estate, without selling any of their holdings.

The US federal home loan regulator is looking into how Bitcoin holdings could help mortgage seekers qualify for home loans. The move comes amid a decline in the number of mortgage applications in recent years as the US experiences a housing crisis.

In a statement on X on June 23, Bill Pulte, head of the Federal Housing Finance Agency (FHFA), said his agency will “study the usage of [sic] Bitcoin holdings as it relates to qualifying for mortgages.”

Homeownership has remained relatively stable over the last 50 years in the US, with around 62% of the population owning homes.

However, the number of new applicants has seen a sharp decline in recent years.

While some boutique lenders already allow borrowers to use their Bitcoin as collateral, study and acknowledgement from the FHFA would represent a major step forward for Bitcoin adoption, particularly amid flagging mortgage application numbers.

FHFA Goes Pro-Bitcoin On Mortgages, While Housing Rates Decline

While scant on details, Pulte’s pro-Bitcoin comments come at a time when the US housing market is experiencing serious difficulties.

The number of mortgage originations — i.e., the process in which a lender works with a borrower to form a mortgage loan — dropped to near record lows in the middle of 2024 and has improved little in the first quarter of 2025.

The drop in originations, and particularly in refinancing, has been attributed to several factors.

Firstly, the supply of housing is not growing sufficiently to address demand.

Construction is lagging, more housing is being purchased by investors, rather than by would-be homeowners, and elderly homeowners are still living at home rather than moving to senior living accommodations.

Borrowing is also getting more expensive, and many have attributed the slump in originations to the Federal Reserve’s higher interest rates to combat inflation.

Pulte has criticized the Fed’s rate policies, going so far as to call for the resignation of Chair Jerome Powell, who will be testifying before Congress on June 26.

Amid these headwinds, Pulte is looking for ways to make borrowing more feasible for homeowners.

FHFA Approval Could Open Up Lenders To Bitcoin

Acknowledging Bitcoin officially at the FHFA could open up sizeable federal lending programs for more borrowers. In 2024, the FHA alone issued over 760,000 single-family mortgages worth $230 billion.

Until Jan. 23, 2025, most banks couldn’t offer Bitcoin-backed loans or mortgages due to Staff Accounting Bulletin No. 121, a banking rule from the Securities and Exchange Commission that required financial institutions to count Bitcoin as a liability rather than an asset on their balance sheet.

The rule was repealed quickly after President Donald Trump took office.

Still, loans secured through federal programs like FHA, VA and USDA currently do not let borrowers use their Bitcoin as collateral.

Indeed, some federal loans may not even allow dollar liquidations from Bitcoin sales to be used for down payments, according to 99Bitcoins editor Sam Cooling.

Personal finance expert Andrew Lokenauth said that would-be homeowners looking to buy with their Bitcoin proceeds need to “be careful to document everything and save the paperwork.”

Bitcoin advocates lauded Pulte’s openness to Bitcoin (BTC), with some stating that there are already features that lenders prefer — e.g., a transparent paper trail — built into the digital asset.

Mitchell Askew, an analyst at Bitcoin mining-as-a-service Blockware, said that the asset’s liquidity and transparent custody, namely its public blockchain, make it a “perfect collateral” for home loans.

CJ Konstantinos, founder of Bitcoin mortgage and bond company People’s Reserve, said that Bitcoin could further help derisk the mortgage-backed securities market the FHFA oversees by regulating Fannie Mae and Freddie Mac. “This is a no brainer.”

Who Wants Bitcoin Loans?

There are already a small number of lenders that let borrowers offer up their Bitcoin as collateral, but they are few and far between.

These cater more toward the investor class of home buyers and carry risks some may not be ready to stomach.

Milo (formerly MiloCredit) approves loans for borrowers instantly, but they first need to show that they have enough Bitcoin to cover the entire value of the loan.

Milo CEO Josip Rupena said that many clients were buying their second homes, vacation properties or investment properties.

“Many have strong incomes, but traditional banks wouldn’t have qualified them for the full value of these homes,” he said.

Strike, another company offering Bitcoin-collateralized loans, states that there are some risks to Bitcoin loans in their current form. Volatility is a major factor.

If BTC’s price decreases dramatically, the loan-to-value rate increases, “which can trigger margin calls or liquidations — forced sales at inopportune times.”

Lenders are open to risk as well. One commenter stated, “The risk models for this will be insane. Traditional mortgages assume relatively stable income and assets. Now you’re dealing with borrowers whose net worth can swing 50% in a week.

How do you stress-test a portfolio when your collateral includes everything from Bitcoin to random DeFi tokens?”

But Bitcoin ownership in the US is growing increasingly common, with lawmakers and regulators in Washington moving apace to implement rules and legal frameworks that are friendly to the industry.

Recent studies show that Bitcoin is no longer just the remit of uber-rich Bitcoin bros but is increasingly seen as a legitimate retail asset among normal investors.

Some 20% of Americans, around 65 million people, are estimated to now own Bitcoin, according to the National Cryptocurrency Association’s “2025 State of Crypto” report.

Their investments aren’t astronomical either; some 74% of Bitcoin portfolios in the US are worth less than $50,000.

Allowing Bitcoin for downpayments or as collateral could unlock homeownership for the growing number of investors if Bitcoin joins the list of other securities they can use to get a mortgage.

Updated: 12-21-2024

Property Mogul Grant Cardone Launches ‘First Ever’ Bitcoin Real Estate Fund On Florida’s Space Coast

Property mogul Grant Cardone is following in the footsteps of Elon Musk and Jeff Bezos by turning his attention to Florida’s Space Coast, where he has just launched the “first ever” bitcoin real estate fund, which will see him taking millions of dollars in property cash flow and investing it in Bitcoin.

Cardone, 66, claims that by merging the worlds of Bitcoin and real estate, he can drastically reduce the risks involved in bitcoin investment, essentially stabilizing the tempestuous Bitcoin market by balancing it with stable cash flow from property.

He’s raising a total of $87.5 million, with each investor required to make a minimum investment of $250,000. Of that, $15 million will be spent on bitcoin, while $72.5 million will be spent on a portfolio of 300 residential units in Florida.

“I make the purchase with my money, and I pay cash for the real estate and the bitcoin at purchase,” Cardone explains to Realtor.com®. “Then I offer it to my audience of investors and partners at the same price I purchased it at. We have no debt.”

Over the next 48 months, the generated cash flow will be systematically reinvested to acquire an additional $14 million in bitcoin—which, based on historical performance, is projected to appreciate to approximately $30 million in bitcoin value over the same four-year timeline.

“This takes the volatility out of the bitcoin, because the real estate is cash-flowing every month,” says Cardone.

At the culmination of the 48 months, the bitcoin acquired through cash flows will be liquidated and the initial capital investment will be returned to investors, who will still retain ownership of both the real estate and the original bitcoin purchase.

But can the merging of two markets—one traditionally stable and the other oft-wildly unpredictable—work?

According to real estate agent Yoann Dorat, of One Sotheby’s International Realty in West Palm Beach, FL, it might.

“It’s an interesting concept, like mixing two different worlds: one that’s known for steady appreciation and reliable returns, and another that’s, well, the Wild West,” she says. “If you’re comfortable with both real estate fundamentals and the roller-coaster nature of Bitcoin, it might be worth exploring.”

Cardone is quick to note that his journey with bitcoin has been nothing but positive, having started in 2013, when he was paid 100 bitcoin for a speaking engagement in Las Vegas. At the time, that bitcoin was valued at around $500. Today, it’s worth closer to $10 million.

“I didn’t even know what bitcoin was, but I was like, ‘Let’s do it,'” he recalls. Cardone sat on that bitcoin, noting that he “didn’t need to sell it,” because he was making consistent income from his real estate investments.

“Now, that $500 has turned into $10 million,” he notes.

Space Coast Highlights

The bitcoin real estate fund will invest in a multi-family property situated along Florida’s Space Coast—a term used to refer to the region surrounding the Kennedy Space Center and Cape Canaveral, with 72 miles of pristine Atlantic coastline.

Space Coast communities include Cocoa Beach, Melbourne, Palm Bay, Cape Canaveral, Titusville, Viera, and Merritt Island. Houses in the area range from $99,000 to $6.4 million.

So why did Cardone select the Space Coast for this new venture? He admits billionaire Musk’s SpaceX was one major draw.

“I love Elon,” says Cardone, whose investment firm currently owns 11,000 units in Florida. “In one of our apartment buildings, where the average rent is $1,859 a month, you can watch rockets from your patio.”

The private space company Blue Origin, owned by Bezos, has also recently invested more than $1 billion in the area, which has only increased the allure of the Space Coast for investors and homebuyers.

“On the Space Coast, there are lots of jobs to be had in tech, aerospace, education, and related industries. Throw in Florida’s beautiful weather, access to the ocean, and low property taxes, and it’s a very appealing area,” says Martin Orefice, CEO of Rent To Own Labs in Orlando.

Space Coast Real Estate Market

Thanks to the recent investment and innovation, the landscape of the Space Coast housing market is changing.

“Over the past decade, real estate on the Space Coast has seen remarkable appreciation, driven by high demand,” says real estate agent Martha Melendez, with The FIG Team at eXp Realty in Brevard County. “Yet, the current market is offering balance with a healthy inventory of both resale properties and new construction.”

Residents and real estate agents alike are wondering what a bitcoin fund will do to the real estate market—and are hopeful about its potential impact.

“This fund could attract further investment, elevating the local market’s profile and opening doors for broader financial innovation,” says Melendez.

Orefice thinks the fund is “a clear indicator that the area is becoming more prosperous and attracting more attention from rich investors.”

Big money follows big opportunities, and the Space Coast is a magnet for visionaries.

“The area is at the cusp of a significant boom,” says Melendez. “Investors like Cardone recognize this potential, and his presence only reinforces the bright future awaiting Brevard County.”

Bitcoin Meets Real Estate

Among Cardone’s 4.8 million Instagram followers and beyond, whom will his fund appeal to the most?

“Traditional real estate investors who are less familiar with [decentralized finance] may jump on the opportunity to gain Bitcoin exposure,” says Natalia Karayaneva, the founder and CEO of Propy, a blockchain-based real estate platform.

However, she notes, “Most Bitcoin enthusiasts won’t be enticed by sprinkling some bitcoin into a real estate fund.”

Instead, she says, they’re more interested in things like Bitcoin mortgages and the ability to use bitcoin to buy a home.

The latter is already happening in Lake County, FL, according to Carrie Prieto, managing broker of Premier Sotheby’s International Realty.

“We’ve successfully closed two transactions where buyers used Bitcoin to purchase property, with sellers receiving proceeds in cash,” she says.

“This approach not only expands the real estate market by attracting Bitcoin-savvy buyers, but also broadens its reach to international markets, appealing to a more sophisticated and tech-forward audience.”

Funds like Cardone’s and innovations like bitcoin-backed loans signal a shift from bitcoin being viewed as purely speculative to being a practical financial tool, according to Ronen Cojocaru, CEO of 8081.io, a Web 3.0 fintech digital asset trading company.

“As more investment models incorporate bitcoin with traditional assets, adoption is likely to grow across diverse investor profiles,” he says.

Interest in Bitcoin is especially high right now, according to Karayaneva, “particularly given Trump’s pro-Bitcoin stance, the approval of bitcoin ETFs, and the conversations swirling around governmental bitcoin reserves.”

Cardone, who spoke at two Trump rallies, believes strongly that a Donald Trump presidency is good for Bitcoin.

“Paul Atkins, Trump’s choice to lead the SEC commission, is a proponent of Bitcoin,” he says, “Donald Trump, Eric Trump, Don Jr., and Barron are all pro-bitcoin people.”

When asked how high he thinks bitcoin could go, Cardone says, “I could see a scenario where it could hit $250,000 this year. And [investor] Cathie Wood predicts bitcoin will hit $3.8 million by 2030.” (One bitcoin is valued at $97,544.05 as of press time.)

Although these projections are optimistic, bitcoin has experienced significant fluctuations in the past.

For those uncertain about Cardone’s fund given the volatility of Bitcoin, he says, “Real estate has been stable for thousands of years.

No matter what the bitcoin does, we have the base of the real estate. Even if a hurricane hits, we have insurance for the buildings. And hurricanes can’t take the bitcoin away.”

How To Invest

Right now, investors in Cardone’s bitcoin real estate fund must be accredited, according to the SEC—meaning they must have a net worth of at least $1 million, or their gross income must have exceeded $200,000 in each of the two most recent years.

However, Cardone would like to see that change.

“It’s my life’s mission to see accredited and nonaccredited investors treated the same,” he says. “I’m working with the new administration to get that SEC rule changed.

The person with $5,000, like my niece or nephew, should be able to invest in this. The SEC should not have anything to do with what people should invest in.”

Dual-asset strategies like Cardone’s—which leverage the stability of real estate and the high-reward potential of bitcoin—do indeed appeal to a broader range of investors, according to Cojocaru.

But if you miss out on the opportunity to invest in this first fund, Cardone says there’s good news: “Nobody knows this yet—but we’re going to do 12 of these funds by April.”

Julie Taylor is a reporter for Realtor.com. She was most recently a writer and co-executive producer on “The Talk” where she won two Daytime Emmy Awards.

A member of the Writers Guild of America, Julie has written for Cosmopolitan, Glamour, and Redbook magazines and is the author of six books.

Julie earned a B.A. in magazine journalism from the University of Central Oklahoma. After two decades in New York City and Los Angeles, she recently relocated to the Midwest.

Updated: 6-22-2025

$5.1B Cardone Capital Buys 1,000 Bitcoin, Eyes Another 3,000 BTC

Grant Cardone’s real estate investment firm has bought 1,000 Bitcoin as part of its new treasury strategy combining real estate and Bitcoin.

Real estate mogul Grant Cardone has announced the firm’s first Bitcoin purchase as it becomes the latest firm to embrace a digital asset treasury strategy.

Cardone Capital added 1,000 Bitcoin to its balance sheet, becoming the “first ever real estate/Bitcoin company integrated with full BTC strategy,” CEO Grant Cardone said on X on Saturday.

The billionaire entrepreneur added that the strategy was “combining the two best-in-class assets,” real estate and Bitcoin, and added that the firm expects to add another 3,000 BTC to its treasury this year.

The purchase is worth just over $101 million at current market prices and will place Cardone Capital above mining firms Core Scientific and Cipher Mining in terms of Bitcoin holdings, according to BiTBO.

Cardone Capital is a private equity real estate firm that was launched in 2017. It pools investor capital to acquire multifamily residential properties and currently manages more than 14,000 units with an estimated $5.1 billion in assets under management.

Real Estate And BTC Fund Launched

In May, the real estate investment firm launched the 10X Miami River Bitcoin Fund, a dual-asset fund consisting of a 346-unit multifamily commercial property located on the Miami River in Miami, and $15 million in Bitcoin.

Speaking to Cointelegraph at the time, Cardone said his brother inspired him to “create a fund where we buy real estate, add Bitcoin, and then use the cash flow from the real estate purchase to buy more Bitcoin.”

Metaplanet Holdings Hit 11,111 BTC

Cardone Capital isn’t the only company buying Bitcoin over the past week. Japanese Bitcoin investment strategy firm Metaplanet has also been increasing its treasury with the announcement of the acquisition of an additional 1,111 BTC on Monday.

The latest purchase, at a price of $105,700 per Bitcoin, brings the total holdings to 11,111 BTC, worth around $1.12 billion at current market prices.

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