Fannie Mae Opens Door to Crypto-Backed Home Loans

A new product allows borrowers to pledge bitcoin or USD Coin to secure a second loan for a down payment on Fannie Mae-eligible home loans.

Bitcoin virtual cryptocurrency resting on U.S. dollar banknotes in Paris on Feb. 14, 2025. Maeva Destombes/Hans Lucas/AFP via Getty Images

Home-loan giant Fannie Mae will soon accept so-called crypto-backed mortgages for the first time, marking another step in cryptocurrencies’ push into mainstream consumer finance.

On Thursday, mortgage lender Better Home & Finance and crypto exchange Coinbase Global announced a new product that ties digital assets to down payments on Fannie Mae-eligible home loans.

Under the structure, homebuyers can pledge Bitcoin or USDC stablecoin as collateral for a separate loan that funds the cash down payment—rather than converting those assets into U.S. dollars, which not only incur tax liabilities but also cost them any potential future gains.

Crypto-backed mortgages are not new, but the Better–Coinbase product is the first to be accepted by Fannie Mae, a government-sponsored enterprise overseen by the Federal Housing Finance Agency (FHFA) and a central force in the U.S. housing market.

The new offering follows a broader policy shift at the FHFA. Last June, FHFA Director Bill Pulte directed Fannie Mae and its sister company, Freddie Mac, to develop ways to recognize cryptocurrency held on regulated exchanges as part of borrowers’ reserves, which are assets lenders consider when assessing mortgage risk.

The goal, according to Pulte’s directive, is to give lenders a fuller picture of borrower financial strength and improve the long-term sustainability of homeownership.

Homebuyers are already tapping crypto to purchase houses. A 2022 survey by home brokerage company Redfin found roughly 12 percent of homebuyers said they planned to sell crypto assets to help get the cash to cover a down payment on a home, up from 5 percent in 2019 and 8 percent in 2020.

“For years, banks wouldn’t even consider crypto assets for their lending decisions,” Max Branzburg, head of consumer and business products at Coinbase, wrote in a March 26 post on X. “Now, not only will your crypto assets be considered for underwriting, but they can be used as backing for your mortgage.”

To use the new product, borrowers must have a Coinbase account and take out two loans through Better: a traditional 15- or 30-year Fannie-backed mortgage and a second loan backed by bitcoin or USDC. The proceeds from the second loan are used for the down payment on the first. Both loans are held by Better.

Once pledged, the crypto cannot be traded, and the companies say there are no margin calls tied to price swings as long as the borrower remains current on monthly payments. The crypto remains in Better’s custody until the second loan is repaid, at which point the assets are returned.

According to Coinbase, the loan terms are not affected by changes in cryptocurrency prices. The pledged assets are at risk of liquidation only if a borrower becomes delinquent on payments.

The tradeoff is cost. Borrowers have to pay interest on two loans, making the structure more expensive than a traditional mortgage with a standard cash down payment.

There is also no private mortgage insurance on the second loan.

About 14 percent of U.S. adults owned cryptocurrency as of 2025, according to a Gallup survey. This contrasts with about six in 10 Americans owning stock and real estate, according to Gallup’s 2025 estimates.