TLDR
- Better and Coinbase plan a Fannie Mae backed mortgage using Bitcoin or USDC as down payment collateral.
- Buyers would take a standard mortgage and a separate loan backed by crypto for the down payment.
- Better said rates may run up to 1.5 percentage points above standard Fannie Mae levels.
- Once pledged, the crypto cannot be traded, but loan terms stay unchanged if payments remain current.
- FHFA told Fannie Mae and Freddie Mac in June to prepare plans that count certain crypto assets
Fannie Mae is preparing to accept Bitcoin and other crypto assets for some home loans. The move would let buyers use digital holdings as collateral instead of selling them for cash. It would be the first time Fannie Mae supports a product built around crypto collateral.
The product is being launched by Better Home and Finance and Coinbase. It would support Fannie Mae backed mortgages and widen options for buyers with crypto wealth. Buyers could seek a home loan without liquidating Bitcoin or certain stablecoins.
How the mortgage product would work
A buyer would take a standard 15 year or 30 year mortgage from Better. A separate loan would cover the down payment and would be backed by Bitcoin or USDC. That down payment loan would sit beside the main mortgage. Better would originate the loans under Fannie Mae standards.
Fannie Mae does not make home loans directly. It buys mortgages from lenders, packages them, and guarantees payments to investors. Fannie Mae and Freddie Mac also play a central role in US housing finance. Their underwriting rules are widely used across the mortgage market.
Costs and limits for crypto borrowers
The structure could help buyers keep their crypto, and it could delay a taxable sale. That may appeal to borrowers who want homeownership and continued market exposure. Many buyers now sell investments to cover a down payment. This product offers another route.
Coinbase executive Max Branzburg said many owners lacked a workable housing path. “We haven’t really had the best way to service that need,” he said. The second loan would also add borrowing costs to the purchase. Better said rates could range from standard Fannie levels to 1.5 points higher.
Once pledged, the crypto could not be traded. Borrowers would also need to keep making monthly payments on time. Better Chief Executive Vishal Garg said loan terms would stay unchanged if values fell and payments stayed current.
Why lenders are changing mortgage rules
The change follows a June order from FHFA Director Bill Pulte. He asked Fannie Mae and Freddie Mac to prepare plans for using certain crypto assets. The order said those assets could be counted without mandatory conversion to dollars. The move came as the Trump administration showed support for the crypto industry.
Crypto is already showing up in home purchases. Gallup said 14% of US adults owned cryptocurrencies in 2025. Redfin said nearly 13% of recent millennial and Gen Z buyers sold crypto for down payments.
Milo has offered crypto backed mortgages since 2022 and has more than 100 customers. Newrez has also started accepting some crypto holdings in mortgage qualifications.
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