Chicago-based mortgage lender Rate announced the launch of RateFi on Monday, a recent mortgage product enabling borrowers to qualify for home loans using verified cryptocurrency holdings without requiring liquidation of those assets. The program, available this month, aims to bridge the gap between digital assets and traditional home financing, addressing a growing market of crypto investors previously excluded from conventional mortgage options.
RateFi allows qualified borrowers to utilize cryptocurrency as part of their income and asset qualification, according to a press release. Even as funds used for down payments or closing costs still require conversion to US currency, the core innovation lies in the ability to leverage crypto holdings for qualification purposes without selling them, potentially avoiding tax implications and maintaining investor control.
“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. “RateFi changes that. We built this product to apply common-sense underwriting to a modern financial reality, allowing qualified borrowers to use their crypto without selling it, without gimmicks and without stepping outside established lending standards.”
The launch of RateFi comes as cryptocurrency adoption continues to grow. Rate estimates that more than 10% of Americans currently hold digital assets, with some portfolios reaching six and seven-figure valuations. Historically, mortgage lenders have largely required borrowers to liquidate crypto holdings to demonstrate financial stability, a process that can trigger capital gains taxes and diminish the investor’s position in the market.
RateFi accepts select, widely recognized cryptocurrencies and USD-backed stablecoins held in approved custodial wallets. Assets held in non-custodial wallets and decentralized exchanges are not currently permitted. Valuation adjustments will be applied to cryptocurrency holdings, reflecting the inherent market fluctuations of these assets.
The product is designed to operate within existing mortgage frameworks, representing the first phase of Rate’s broader digital asset lending strategy. The company plans to expand its offerings in this space over time, adapting to the evolving landscape of digital finance. RateFi is fully integrated into Rate’s digital mortgage platform.
Victor Ciardelli, a leader in fintech and mortgage innovation, spearheaded the introduction of RateFi nationwide. The company intends the product to expand access to homeownership for a growing segment of borrowers with substantial digital asset holdings.
