Crypto qualified for mortgage

[kotajikikox]

The Federal Housing Finance Agency is looking to make cryptocurrency a legitimate reserve asset in mortgage risk assessments. The director of FHFA has signed an order that would help borrowers get home loans without converting their assets into fiat currencies. This is good news for crypto holders planning to buy a house because without having to convert their assets, they would be avoiding an additional capital gains tax. This would also help first time homebuyers with not much funds but have enough assets held in crypto. A list of qualified cryptocurrencies is yet to be released but we should expect bitcoin to be included.

If you were a homebuyer, would you wish to buy with your bitcoin?

[_act_]

Which means someone that needs a mortgage loan can use crypto as a collateral? But why mention crypto when those shit coins can not serve such purpose because of their high volatility and the fact that they are not getting to all time high. Only bitcoin is suitable for this because it is the only coin that can be called store of value.

[ruykeri]

It's a good thing that the Federal Housing Finance Agency  has allowed crypto to be used as collateral for home loans. If they approve it, Bitcoin will definitely be listed first because other coins are not as safe as Bitcoin. This approval means that Bitcoin is now directly considered an asset. If more institutions start operating in this way, it will make Bitcoin more widely accepted. And what will actually work is that from now on, loan applicants will not have to sell or convert their crypto holdings to fiat, but will be accepted directly as a mortgage reserve. Several countries around the world have been planning such activities for a long time, including Spain, which has already proposed a mortgage specific bill that would facilitate the use of crypto for mortgage payments. Real estate transactions with crypto assets have started in Portugal since 2021. But my question is that the value of Bitcoin fluctuates very quickly, so if it is used as a mortgage, how will its value be determined... and how long can its duration be?

[FortuneFollower]

It's good news, because, again, making BTC the real alternative for such things described in the post means BTC is being seen as capable for such tasks: which is good!

But as it was outlined - we may see other coins to be used for such activities too, however, BTC would be the best choice anyways.

[Ambatman]

Which means someone that needs a mortgage loan can use crypto as a collateral? But why mention crypto when those shit coins can not serve such purpose because of their high volatility and the fact that they are not getting to all time high.

Thats because they don't know the difference between Bitcoin and other cryptocurrency
Tbs I doubt they understand what they are heading in to
Except they plan on accounting for volatility's and reduce the actual dollar amount of the cryptocurrency
This would definitely be in their favour and can help them accumulate with major risk borne by the customers.

If you were a homebuyer, would you wish to buy with your bitcoin?

I don't know if I'd be okay with telling people I bought my house with such amount higher than its value.
It would make it seem like my asset depreciated due to faster appreciation of Bitcoin
But if I find the house as a necessity then I won't regret getting it with what I have
The Essence of Bitcoin is making payments in a decentralized method.

[BitGoba]

Bitcoin is well-suited to serve as collateral, as it represents a form of money superior to gold. Its upward trajectory against fiat currencies is likely to continue indefinitely imilar to gold or the S&P 500 index nbut with an almost certain higher CAGR than either gold or the S&P 500. For this reason, it is particularly suitable to be used as collateral.Other cryptocurrencies are not suitable as collateral because they do not represent a sound form of money. Over the long term, they are unlikely to retain or increase in value many will stagnate, decline, or even disappear as new projects emerge

[BitGoba]

The Essence of Bitcoin is making payments in a decentralized method.

Bitcoin is money and a monetary system. Money originated when people realized they needed something to serve as a medium of exchange, so they wouldn't have to trade goods directly (barter). Besides being a medium of exchange, money is also a store of value allowing people to preserve wealth over time to exchange for goods and services in the future. Lastly, money serves as a measure of value.Just as we measure mass in kilograms and length in meters, money serves as a unit of measurement for value.

Money evolved from primitive forms like shells, beads, and even whale teeth. Eventually, metalsespecially gold became the dominant form of money worldwide. Gold emerged as money for most people on the planet.

However, gold was heavy and difficult to transport and store, making it impractical as a medium of exchange. During the Middle Ages, gold money was handled by moneylenders and money changers. Each ruler minted their own gold coins, so if you traveled, for example, from Britain to Venice, you had to exchange your gold coins. Moneylenders would provide loans but also exchanged these coins, charging fees for their services.This work was mostly done at market stalls or counters, which is where the word "bank" originates from the Italian word banca, meaning bench or counter.Over time, moneylenders began offering gold storage services. People who deposited their gold received paper certificates in return. These certificates became widely used as a medium of exchange because they were much more practical than carrying gold.

When moneylenders realized that few people came to redeem their gold, they started printing more certificates and issuing them as loans. This practice laid the foundation for the modern monetary and banking system.Later, moneylenders evolved into banks and central banks were established. They paid the British economist John Maynard Keynes, who developed a theory to justify inflation and a debt-based monetary system.
Bitcoin represents an evolution of moneya better monetary system. If you're interested, I recommend reading books like The Bitcoin Standard by Saifedean Ammous or Broken Money by Lyn Alden, which explain these concepts in much greater detail.

[stadus]

First off, this is a good sign as it shows that crypto is starting to be trusted as collateral for housing loans. But of course, there’s a catch. No company will give you 100% of the market value of your crypto, wherever it’s stored. They know how volatile it is, so the risk has to be managed properly.

Most likely, they’ll apply a discount, maybe around 60% to 80% of your crypto’s value. So if you’re holding $1 million worth of crypto, you might only get access to around $600k at the lowest. Still, that’s not a bad deal. If your goal is to hold your crypto long term and you can afford the loan payments, it’s a win-win. You get to keep your investment while securing a home.

[Finestream]

Of course, bitcoin is probably the first priority for the accepted cryptocurrencies. So if I’m in need of a shelter for my family, I will surely take the offer. This is already a good opportunity for us bitcoin holders to use bitcoin as a housing loan collateral, but nevertheless we should also be prepared losing some significant amount of bitcoin that we have been hodling for years.

At the end of the day, we can always buy and hold bitcoin again, as long as we still have that patience to keep buying and hold bitcoin until it achieves a massive amount.

[Doan9269]

The Federal Housing Finance Agency is looking to make cryptocurrency a legitimate reserve asset in mortgage risk assessments.

Since government are now advancing towards the acceptance of bitcoin reserve, then all these may be coming in and many other related bitcoin acceptability, so i see this as a welcome innovation, only if they are going to maintain it and also make fair regulations to the interest of its users.

If you were a homebuyer, would you wish to buy with your bitcoin?

You may only not feel this when the time for repayment is coming at the bear season, then you would be so happy to pay while the value is not increasing, but if they assumed your repayment with the rate of dollar worth, then you had to pray for the bull season and the asset to pump, so that you cant be in lose at making repayments.

[avp2306]

The Federal Housing Finance Agency is looking to make cryptocurrency a legitimate reserve asset in mortgage risk assessments. The director of FHFA has signed an order that would help borrowers get home loans without converting their assets into fiat currencies. This is good news for crypto holders planning to buy a house because without having to convert their assets, they would be avoiding an additional capital gains tax. This would also help first time homebuyers with not much funds but have enough assets held in crypto. A list of qualified cryptocurrencies is yet to be released but we should expect bitcoin to be included.

If you were a homebuyer, would you wish to buy with your bitcoin?

This is great action done by the authorities since they give a good option for people to pay crypto.

With those things they want to do it gives good use for cryptocurrency and it give great exposure to those skeptical institutions or other government bodies on how useful it is especially if they will just create a good use or done good regulation towards this industry.

That's good development and hopefully we see them succeed also see more news like this in future.

[SilverCryptoBullet]

The Federal Housing Finance Agency is looking to make cryptocurrency a legitimate reserve asset in mortgage risk assessments.

If you were a homebuyer, would you wish to buy with your bitcoin?

On tip of iceberg, it looks very good but if you think deeply, you will see a lot of risk with this mortgage collateral type. Cryptocurrencies are known as very volatile and even you can use them as your collaterals, it contains many risk that can result in forced liquidations. If you see how terrible it is with liquidations on cryptocurrency exchanges, you will see nearly similar dangerous with cryptocurrency collateral for real estate buyers and other things.

I don't say it is not good for adoption of Bitcoin and cryptocurrency but personally I never use it as my collateral for anything. If I want to buy a house, cash our my bitcoin or find real estate companies that accept Bitcoin directly.

[Smartprofit]

In my opinion, this is very positive news! The price of Bitcoin is constantly growing and will very soon be equal to the cost of good real estate. These two assets only seem different, in fact, they have a lot in common. Both Bitcoin and real estate, in particular land, land plots have a limited supply on the market. Bitcoin is generally very poorly suited for small purchases, for example, for buying a cup of coffee. Another thing is the acquisition of real estate! If Bitcoin is used for mortgage lending, this will greatly revive the housing construction market, in addition, it will be very profitable for Bitcoin owners, because it is no secret that the price of Bitcoin is constantly growing in the long term. Accordingly, this will allow holders to purchase real estate, and therefore diversify their investment investments. At the same time, they will save their coins. That is, it will be a very profitable financial scheme.

[joniboini]

Hard to see this happen in my country tbh. But let's say they do, I'm not sure I'd risk my crypto savings to buy a new house. I guess cultural differences and the work environment affect this. For example, my parents have 2 unused homes in my city, I can move to one of them and save more sats if I want to buy new houses in the future. I'm working online too, so there's no need to move to another city that much. I'm more than happy if crypto is becoming more mainstream, as long as it doesn't force me to hand over everything to the government.

[Outhue]

Which means someone that needs a mortgage loan can use crypto as a collateral? But why mention crypto when those shit coins can not serve such purpose because of their high volatility and the fact that they are not getting to all time high. Only bitcoin is suitable for this because it is the only coin that can be called store of value.

That's left for the mortgage companies to figure it out, if Hbar for example is a shit coin to you and it ended up getting the ETF you will be very wrong before you know it, the thing is no one is against Bitcoin for what it is but can Bitcoin does it all? This is the question you people are not asking yourself.

RWA for example are not tokenization of real assets, can Bitcoin get this done? I know there are thousands of shit coins out there but there are also few useful ones that are doing what Bitcoin can't, and just because some people don't like any other coins doesn't mean they won't do well.

High volatility? Accepted, is this same high volatility not present with Bitcoin? Now is the time to say that Bitcoin is less volatile because of institutions involvement and also ETFs.

[aoluain]

Which means someone that needs a mortgage loan can use crypto as a collateral? But why mention crypto when those shit coins can not serve such purpose because of their high volatility and the fact that they are not getting to all time high. Only bitcoin is suitable for this because it is the only coin that can be called store of value.

Exactly, Bitcoin should be the only one accepted in this case. But on the other
hand if they did consider $hitcoins at least you could get a bit of benefit in
that way by being qualified for a loan


So my understanding is that you wouldn't necessarily need to use your Bitcoin
to by a property but it would count as collateral against a mortgage, sounds
great and even if you had to use the Bitcoin to buy I could think of worse things
to spend it on, like a depreciating asset - i.e: a car!

[Don Pedro Dinero]

The Federal Housing Finance Agency is looking to make cryptocurrency a legitimate reserve asset in mortgage risk assessments. The director of FHFA has signed an order that would help borrowers get home loans without converting their assets into fiat currencies. This is good news for crypto holders planning to buy a house because without having to convert their assets, they would be avoiding an additional capital gains tax. This would also help first time homebuyers with not much funds but have enough assets held in crypto. A list of qualified cryptocurrencies is yet to be released but we should expect bitcoin to be included.

If you were a homebuyer, would you wish to buy with your bitcoin?

You don't seem to have understood very well what you have written, that last question gives it away. The fact that the bank takes into account what you have in cryptocurrencies in the risk assessment does not mean that you have to buy the house with them.

Which means someone that needs a mortgage loan can use crypto as a collateral? But why mention crypto when those shit coins can not serve such purpose because of their high volatility and the fact that they are not getting to all time high. Only bitcoin is suitable for this because it is the only coin that can be called store of value.

Neither. They are talking about including cryptocurrencies in the risk assessment.

In other words, before, if you had $100,000 in money in the bank, a debt of $50,000 and a million in bitcoin, you were only counted as having a net worth of $50,000. Now you will be counted as having net worth of $1,050,000. In most cases you will not have to use bitcoin as collateral, because when you buy a house with a mortgage the collateral is the house itself. Unless you are seen as risky, and then you may be asked for someone to guarantee you or to contribute assets, which could be cryptocurrencies or others.

[_act_]

Which means someone that needs a mortgage loan can use crypto as a collateral? But why mention crypto when those shit coins can not serve such purpose because of their high volatility and the fact that they are not getting to all time high. Only bitcoin is suitable for this because it is the only coin that can be called store of value.

Neither. They are talking about including cryptocurrencies in the risk assessment.

In other words, before, if you had $100,000 in money in the bank, a debt of $50,000 and a million in bitcoin, you were only counted as having a net worth of $50,000. Now you will be counted as having net worth of $1,050,000. In most cases you will not have to use bitcoin as collateral, because when you buy a house with a mortgage the collateral is the house itself. Unless you are seen as risky, and then you may be asked for someone to guarantee you or to contribute assets, which could be cryptocurrencies or others.

You mean before if someone have $100000 in fiat in bank and $1 million in bitcoin.
If the person went for $50000 loan, the person is seen having a net worth of $50,000
But if crypto qualifies for mortgage, the person will be seen having a net worth of $1,050,000
Is that what you mean? Okay, I understood.

What if the person is having only bitcoin?
Or let us say the person is having $10000 in fiat while having $1 million in bitcoin and the person go for $200,000 loan? Will bitcoin not be counted?
I still see how most altcoins are not qualified for this but let me see your opinion about it.

[Z-tight]

What if the person is having only bitcoin?
Or let us say the person is having $10000 in fiat while having $1 million in bitcoin and the person go for $200,000 loan? Will bitcoin not be counted?

In whatever situation, it is still up to the mortgage lenders to assess the borrower, consider the risk and decide to give out the loan or not. What this news simply covers is that right now that the FHFA has ordered that borrowers be allowed to include crypto as part of their assets in their mortgage loan application.

I still see how most altcoins are not qualified for this but let me see your opinion about it.

The FHFA didn't specifically say BTC, but 'crypto', and then this:

Only digital assets held on U.S.-regulated, centralized exchanges will qualify under the new guidance.

[_act_]

In whatever situation, it is still up to the mortgage lenders to assess the borrower, consider the risk and decide to give out the loan or not. What this news simply covers is that right now that the FHFA has ordered that borrowers be allowed to include crypto as part of their assets in their mortgage loan application.

I do not accept this at all, they should deal with just bitcoin, which is even still very risky but far better. Those altcoins should totally be avoided because they are very volatile. You can see them lose high percentage from their high price in just weeks. Any company that will include the altcoins are just gambling and not for business.

Also stable coins can be included but not those altcoins. Infact altcoins is still a better way to represent them, but they are just shit coins.

I always hate to see cryptocurrencies to be mentioned in topics like this. Just bitcoin and few other altcoins are better. I am sure if they will include altcoins, it will not be more than ether and stable coins like USDT, or they should gamble with business.