Rate Introduces RateFi for Crypto-Backed Loans

• RateFi allows borrowers to use verified crypto as income and reserve qualification.
• Down payments and closing costs must still be converted to cash.
• The program operates under existing non-QM mortgage guidelines.

Chicago-based lender Rate has officially stepped into the crypto mortgage debate.

On Monday, the company announced the launch of RateFi, a new program that allows qualified borrowers to use verified cryptocurrency holdings to help secure a home loan, without being forced to sell their digital assets first.

For years, crypto investors faced a frustrating reality: lenders either required liquidation, triggering possible tax consequences, or forced borrowers into pledged-asset loan structures that restricted control over their holdings. RateFi attempts to remove that friction.

But this is not a free-for-all.

How RateFi Actually Works

RateFi operates within existing non-qualified mortgage (non-QM) structures. Borrowers can use verified, non-liquidated crypto as part of their income and reserve qualification. However, if digital assets are being used for a down payment or closing costs, those funds must still be converted into cash.

The program follows strict anti-money laundering and know-your-customer standards, and assets must be verified through approved channels.

According to Rate, more than 10% of Americans now hold digital assets, with some maintaining six- and seven-figure portfolios. Yet traditional underwriting models have largely ignored that wealth.

Homeownership among Americans under 35 has fallen to historic lows, while cryptocurrency adoption among younger adults continues to rise. Many in that demographic hold digital assets as a primary store of wealth but struggle to translate that into mortgage eligibility.

“Digital assets are real assets, yet mortgage lending has treated them as invisible,” said Kate Amor, executive vice president and head of enterprise products at Rate. She described RateFi as “common-sense underwriting” applied to a modern financial reality.

Policy Winds Are Shifting

The launch comes as digital assets gain recognition at the federal level. Senator Cynthia Lummis introduced the 21st Century Mortgage Act, which would require government-sponsored enterprises such as Fannie Mae and Freddie Mac to consider digital assets when evaluating single-family mortgage applications.

The proposal aligns with broader signals from the Federal Housing Finance Agency encouraging recognition of cryptocurrency as a reserve asset in lending assessments.

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