What the New Rules Actually Say

At LBC Capital, we recognize the growing role cryptocurrency plays in personal finance. If you’re a homebuyer in Washington, it’s important to understand how changes in asset rules during the mortgage underwriting process may affect your loan eligibility.

Until recently, mortgage underwriters only considered traditional assets like bank deposits, retirement accounts, and brokerage investments. Cryptocurrency holdings typically had to be liquidated and converted to U.S. dollars before they were acknowledged. That’s now changing. In June 2025, the Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to start developing frameworks to allow qualifying cryptocurrency holdings to be counted in underwriting for single-family home loans.

For Washington homebuyers, this shift means your crypto assets could soon enhance your financial profile—if they meet new eligibility criteria and you work with a lender who understands how to navigate the evolving guidelines. LBC Capital is staying on top of these developments to ensure our clients benefit from the latest changes.

Assets Must Be Held on U.S.-Regulated Exchanges

For crypto assets to count in mortgage underwriting, they must be held on a U.S.-regulated and centralized exchange. If your holdings are stored in private wallets or international exchanges that don’t meet U.S. regulatory standards, they likely won’t qualify under the new rules. LBC Capital works with clients to verify that their crypto accounts meet these requirements.

No Mandatory Liquidation into U.S. Dollars

A key shift in the new guidance is that crypto does not need to be converted to fiat currency to qualify as a reserve asset. This means borrowers may preserve their investments without triggering capital gains tax events or incurring losses due to market volatility. LBC Capital ensures you meet all documentation requirements while keeping your holdings intact when possible.

Volatility Adjustments Will Apply

Because cryptocurrencies are volatile, lenders will apply adjustments or “haircuts” to their value. This reduces the amount of credit you receive for your crypto holdings in the underwriting process. LBC Capital helps you calculate the usable value of your assets and ensures your financial profile remains strong under these conditions.

Primarily Used for Reserves

Currently, crypto assets are expected to support reserve requirements rather than fund down payments or closing costs. Reserves are the assets you’ll hold after the mortgage closes, used as a financial cushion. LBC Capital can clarify how your crypto fits into your loan structure and whether limited exceptions apply for down payments.

Timeline for Implementation

While the directive is active, Fannie Mae and Freddie Mac are still working to finalize and publish official underwriting guidelines. That means it may take several months before crypto assets can be formally included. LBC Capital monitors these updates daily and will notify you as soon as lender programs adopt the new rules.

How This Affects Washington Borrowers

Enhanced Asset Profiles

Washington borrowers with crypto assets may now present a more complete financial picture during underwriting. Instead of being forced to liquidate digital holdings, you can show strength through diversified wealth. LBC Capital assists in preparing compliant documentation, including exchange statements, transaction history, and proof of asset value.

Greater Flexibility for Borderline Borrowers

Some borrowers previously ineligible due to insufficient cash reserves may now qualify for mortgages if their crypto assets are counted. If your investments are significant but not traditional, LBC Capital helps you leverage them to meet underwriting thresholds.

Liquidity and Tax Considerations

You may not need to sell your crypto, allowing you to avoid unnecessary taxes or market timing risks. However, lenders still want proof that your assets can be accessed quickly if needed. LBC Capital helps you structure your holdings and paperwork to meet liquidity standards.

Managing Market Fluctuations

Given crypto’s price volatility, lenders apply discounts to reduce the risk of asset devaluation. That means you may not receive full value credit for your holdings. LBC Capital models your portfolio conservatively to help ensure you meet requirements even in less favorable market conditions.

Down Payment and Reserve Rules Still Apply

Crypto assets alone don’t determine your loan approval. You’ll still need to meet credit, income, and property-related guidelines. LBC Capital evaluates your full financial profile to develop a complete, accurate, and competitive mortgage application.

Washington-Specific Implications

Although these are federal rules, local implications exist. Washington’s property tax system, escrow structures, and state-level tax treatment of crypto may come into play. LBC Capital works with professionals familiar with Washington law to make sure your transaction goes smoothly.

Why Work With LBC Capital for Crypto-Asset Mortgages

At LBC Capital, we offer specific advantages to clients looking to include cryptocurrency in their mortgage applications.

  • We stay updated on FHFA, Fannie Mae, and Freddie Mac crypto policies and changes.
  • We guide you through exchange and wallet documentation, including tax considerations.
  • We align your crypto strategy with lender expectations, improving your eligibility and reducing stress.
  • We collaborate with lenders actively piloting crypto-friendly programs to offer early access.
  • We explain complex mortgage terms in plain language to help you make informed decisions.

With LBC Capital, you’re working with a team that understands the digital asset landscape as well as the mortgage process. Our guidance turns potential complications into strategic advantages.

Steps You Can Take Now if You Hold Crypto

Prepare Your Documentation

Start collecting detailed records now: exchange account statements, transaction logs, and wallet history. LBC Capital can provide a checklist tailored to what underwriters require.

Check Platform Compliance

Ensure your crypto is held on a U.S.-regulated exchange. LBC Capital can help evaluate your custodial setup and suggest compliant alternatives if needed.

Estimate Realistic Asset Values

Work with LBC Capital to model your crypto holdings using conservative estimates. That way, you’ll understand how much value you can reasonably count on in the underwriting process.

Maintain Broader Eligibility Requirements

Crypto is just one factor. Stable income, good credit, and manageable debt are still critical. LBC Capital helps you strengthen your full application.

Stay Informed on Policy Changes

As Fannie Mae and Freddie Mac finalize their crypto guidelines, rules will evolve. LBC Capital will provide updates and help you adapt your strategy accordingly.

Consult With a Tax Advisor

Even if liquidation isn’t required, changes in asset value or future sales may have tax consequences. LBC Capital can connect you with experts in crypto and real estate taxation.

Looking Ahead

Recognizing cryptocurrency as an eligible asset in mortgage underwriting represents a major step forward. For Washington borrowers, this opens new doors, especially for those with digital investment portfolios.

At LBC Capital, we are prepared to help you take full advantage of these changes. We bring clarity, expertise, and an understanding of both mortgage lending and crypto markets. Our goal is to make sure your digital assets work in your favor, enhancing your loan profile instead of complicating it.