Key Takeaways
- A revolutionary partnership between Fannie Mae, Coinbase, and Better Home & Finance introduces crypto-collateralized mortgage down payments.
- Homebuyers can use Bitcoin or USDC as collateral without liquidating their holdings, potentially avoiding capital gains tax consequences.
- The financing arrangement involves two separate loans: a traditional Fannie Mae-guaranteed mortgage and an additional crypto-collateralized loan.
- Interest rates for the crypto-backed portion may exceed conventional mortgage rates by as much as 1.5 percentage points.
- This initiative stems from FHFA Director Bill Pulte’s June 2025 mandate directing government-sponsored enterprises to integrate cryptocurrency into mortgage underwriting.
In a landmark development for housing finance, Fannie Mae—the government-backed mortgage behemoth managing $4.1 trillion in assets—is launching a program that accepts cryptocurrency as down payment collateral. This groundbreaking initiative was developed in collaboration with Coinbase and Better Home & Finance.
Fannie Mae will soon accept crypto-backed mortgages, according to WSJ. Better and Coinbase are launching a product that lets buyers use bitcoin or USDC as collateral for a separate loan to cover the down payment, instead of selling crypto. pic.twitter.com/IEAawR8xHK
— Wall St Engine (@wallstengine) March 26, 2026
The concept is straightforward yet transformative. Instead of liquidating digital assets to generate cash for a down payment, prospective homeowners can pledge their cryptocurrency holdings as security. This arrangement allows them to maintain ownership of their crypto investments while obtaining financing for residential property.
The financing mechanism employs a dual-loan approach. Homebuyers receive a conventional Fannie Mae-guaranteed mortgage with standard 15- or 30-year terms. Simultaneously, they secure a secondary loan collateralized by their cryptocurrency, which provides the funds for the down payment requirement.
Currently, the program accepts Bitcoin and USDC as eligible collateral. These digital assets remain locked and unavailable for trading throughout the loan term.
Better Home & Finance CEO Vishal Garg emphasized that volatility in the pledged cryptocurrency won’t jeopardize the primary mortgage, provided borrowers maintain regular payments. This feature addresses a significant concern associated with crypto-backed lending products.
Understanding the Dual-Loan Mechanism
This financing approach carries higher costs than traditional mortgages. Borrowers must service interest obligations on both loan products. The cryptocurrency-collateralized loan may carry rates comparable to standard Fannie Mae mortgages, or command a premium of up to 1.5 percentage points above conventional rates.
Max Branzburg from Coinbase explained that cryptocurrency investors have historically been reluctant to purchase real estate because selling assets to fund down payments would trigger substantial capital gains tax liabilities. This innovative product addresses that barrier directly.
It’s important to note that Fannie Mae doesn’t originate loans to consumers. Instead, it purchases mortgages from approved lenders, securitizes them, and provides payment guarantees to investors. This institutional backing provides legitimacy that previous crypto mortgage offerings from smaller financial companies couldn’t match.
Previous Crypto Mortgage Initiatives
Cryptocurrency-backed home financing isn’t without precedent. Miami-based fintech startup Milo introduced a comparable product in 2022. The company has facilitated transactions for slightly more than 100 clients since launch.
Milo’s CEO Josip Rupena noted that their typical customer profile resembles international buyers: substantial asset holdings but limited U.S. credit history. While representing a specialized segment, this market has demonstrated consistent expansion.
Additionally, non-bank mortgage provider Newrez has begun accepting specific cryptocurrency holdings in loan applications without mandating conversion to fiat currency. These developments signal broader industry movement toward mainstream acceptance of digital assets.
Regulatory Framework
This program emerged from a June 2025 directive issued by Bill Pulte, Director of the Federal Housing Finance Agency. His guidance instructed both Fannie Mae and Freddie Mac to develop frameworks for incorporating cryptocurrency into mortgage qualification processes.
Recent Gallup data indicates that approximately 14% of American adults held cryptocurrency in 2025. Separately, Redfin’s research revealed that nearly 13% of younger homebuyers had already liquidated digital assets to finance down payments.
Important implementation details for Fannie Mae’s crypto mortgage program remain under development. These include methodologies for valuation of collateral assets and specific risk management protocols that will govern the program’s operations.
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