TLDR
- Bitcoin collateral helped qualified buyers secure a Fannie Mae-backed mortgage without selling their digital asset holdings.
- Better and Coinbase structured the loan to address down payment gaps among income-qualified homebuyers.
- The product initially supports Bitcoin and USDC, with nationwide access planned for summer 2026.
- Borrowers receive a standard mortgage plus a second lien tied to pledged crypto collateral.
- The first loan closed in Ann Arbor for buyers seeking to preserve long-term Bitcoin exposure.
Better Home & Finance and Coinbase have funded the first Fannie Mae-backed mortgage using Bitcoin as collateral for a home down payment in the United States. The loan was completed for Joe and Amy, a married couple in Ann Arbor, Michigan, who used their Bitcoin holdings without selling the asset.
The mortgage structure allows eligible borrowers to pledge digital assets while still obtaining a conforming home loan under Fannie Mae standards. Better said the product was created for buyers who meet income and credit requirements but lack cash for a traditional down payment.
Coinbase said the arrangement gives crypto holders a path to homeownership without triggering a sale of long-held digital assets. The companies said the product initially supports Bitcoin and USDC, with broader availability planned for qualified borrowers nationwide by summer 2026.
Buyers Used Bitcoin Instead of Selling Holdings
Joe, a software engineer, and Amy, a graduate student, had accumulated digital assets but did not want to liquidate their Bitcoin position. Selling the asset could have created tax exposure while reducing their long-term investment holdings.
The couple used the token-backed mortgage program to complete their first home purchase while keeping their Bitcoin intact. Better described the transaction as a way to serve borrowers whose wealth is stored outside traditional bank accounts.
Better said 41% of its pre-approved customers qualify based on income and credit but do not have enough cash for a standard down payment. The company linked the product to housing affordability challenges, including high mortgage rates, rising home prices, and limited inventory.
Better and Coinbase Plan Wider Rollout
The product uses two loans, including a standard Fannie Mae-backed mortgage and a second lien connected to pledged crypto collateral. Better’s website states that Bitcoin price volatility does not cause automatic liquidation under the mortgage structure.
For example, a borrower seeking a $100,000 down payment may pledge $250,000 in Bitcoin while placing a second lien on the home. Better says pledged crypto may be liquidated after a 60-day payment delinquency, depending on the borrower’s status.
The product follows recent federal attention on how mortgage lenders review digital assets in borrower applications. Guidance has focused on crypto held through centralized exchanges rather than self-custodial wallets, while lenders have historically relied on assets such as stocks, bonds, and cash.
Coinbase said it was selected because of its digital asset custody, compliance systems, and existing role with retail, institutional, and government clients. Better and Coinbase said they expect the mortgage product to become available to qualified borrowers across the country in the coming months.
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