TLDR
- A groundbreaking mortgage initiative from Fannie Mae, Coinbase, and Better Home & Finance enables crypto assets to serve as down payment collateral.
- Homebuyers can use Bitcoin or USDC holdings without liquidating them, thereby sidestepping capital gains tax implications.
- The financing model involves two separate loans: a conventional Fannie Mae mortgage combined with a digital asset-secured loan.
- Interest rates on the cryptocurrency-collateralized portion could exceed standard mortgage rates by as much as 1.5 percentage points.
- This initiative stems from FHFA Director Bill Pulte’s June 2025 instructions directing Fannie Mae and Freddie Mac to integrate cryptocurrency into mortgage frameworks.
The $4.1 trillion government-sponsored enterprise Fannie Mae is introducing a mortgage product that accepts cryptocurrency as down payment collateral rather than traditional cash. This innovative program emerges from a collaboration between Coinbase and mortgage provider 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. Instead of liquidating digital assets to generate down payment funds, prospective homeowners can pledge their cryptocurrency holdings. This arrangement allows them to maintain their investment positions while securing home financing.
The financing mechanism operates through a dual-loan framework. Borrowers receive a conventional 15- or 30-year Fannie Mae-guaranteed mortgage alongside a secondary loan collateralized by their digital currency, which provides the down payment capital.
Currently, the program accepts Bitcoin and USDC as eligible collateral. Once these digital assets are pledged, they remain locked and cannot be traded throughout the loan term.
Better CEO Vishal Garg has stated that cryptocurrency value fluctuations don’t impact the primary mortgage obligation, provided borrowers maintain regular payments. This feature eliminates a significant concern typically associated with crypto-backed lending arrangements.
Understanding the Two-Loan Framework
This financing approach carries higher costs than traditional mortgages since borrowers must service two separate loans. The cryptocurrency-backed portion may carry interest rates comparable to conventional Fannie Mae products or run up to 1.5 percentage points above standard rates.
Coinbase’s Max Branzburg notes that many cryptocurrency investors have historically avoided homeownership because liquidating holdings would generate substantial capital gains tax liabilities. This product directly addresses that obstacle.
Fannie Mae operates as a secondary market player rather than a direct lender. The organization purchases mortgages from originating lenders, securitizes them, and provides payment guarantees to investors. This institutional backing provides legitimacy that earlier crypto mortgage offerings from smaller providers couldn’t match.
Previous Market Attempts
Cryptocurrency-collateralized mortgages aren’t completely novel. Miami-based financial technology firm Milo introduced a comparable offering in 2022 and has since processed transactions for slightly more than 100 clients.
Milo CEO Josip Rupena explains that his typical customer profile resembles international buyers: substantial asset holdings but thin traditional credit profiles. While still a specialty segment, it has demonstrated steady expansion.
Non-depository lender Newrez has similarly begun accepting specific cryptocurrency holdings in mortgage qualification processes without mandating conversion to fiat currency. These developments indicate broader industry momentum toward mainstream adoption.
Regulatory Context
This program implementation follows Federal Housing Finance Agency Director Bill Pulte’s June 2025 guidance. His directive instructed both Fannie Mae and Freddie Mac to develop frameworks for incorporating digital assets into mortgage underwriting standards.
Gallup data indicates approximately 14% of American adults held cryptocurrency in 2025. Separate research from Redfin revealed that nearly 13% of younger homebuyers had liquidated digital assets to fund down payments.
Important program parameters remain under development. These include collateral valuation methodologies and comprehensive risk management protocols governing the product’s operation.
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