Crypto: Us Lender Rate Unveils Mortgage Program Recognizing Crypto Holdings
The nationwide RateFi product allows borrowers to count crypto holdings toward mortgage underwriting requirements without selling their assets.
US mortgage lender Rate has launched a nationwide program that allows qualified borrowers to use verified cryptocurrency holdings to help meet underwriting requirements without liquidating their assets, marking a formal step toward integrating digital assets into traditional home financing.
The product, called RateFi, operates within the lender’s existing non-qualified mortgage framework and permits borrowers to count verified crypto assets as qualifying reserves and, in some cases, as an income source.
Kate Amor, EVP and head of enterprise products at Rate, told Cointelegraph that for underwriting purposes, RateFi assesses digital asset holdings through a proprietary valuation framework that factors in market price, liquidity and asset-specific volatility. The approach enables certain crypto assets to count toward borrower qualification without being liquidated, while still applying traditional mortgage risk standards.
However, any digital assets used for a down payment or closing costs must still be converted to cash.
The rollout comes as more than 10% of Americans report holding digital assets, according to the company, yet most traditional mortgage programs do not recognize cryptocurrency as qualifying collateral unless it is first liquidated.
Liquidating or selling assets often triggers a taxable event or other tax implications, limiting borrowers to pledged-asset loan structures.
Amor said RateFi is designed to work with a curated set of established, high-liquidity large-cap cryptocurrencies and major US dollar-backed stablecoins, though she did not identify the specific assets supported.
Eligible crypto assets must be held with approved custodians or centralized exchanges, and borrowers are required to provide proof of ownership and asset seasoning, typically through monthly statements.
Amor told Cointelegraph that housing affordability pressures are a key factor driving interest in crypto-enabled home financing solutions. She said:
Source: CoinTelegraph
