- Fannie Mae moves to accept bitcoin as mortgage collateral, opening new paths to homeownership.
- Partnership with Better and Coinbase enables buyers to use crypto without selling it.
- The program targets asset-rich but cash-poor buyers struggling with down payments.
The government-sponsored enterprise (GSE) Fannie Mae is set to accept bitcoin as collateral for mortgages, a first in U.S. home financing. This means buyers can use their crypto holdings instead of selling them to make a down payment.
The program is a partnership between Better Home & Finance and Coinbase. It aims to help people who have assets but don’t have enough cash for a down payment.
The mortgage works like any other Fannie Mae loan, giving the borrower the same protections. Better handles the loan process, and Coinbase handles the crypto assets. Bitcoin and USDC can be used as collateral without selling them, bringing digital currency into home financing.
Redefining Homeownership Pathways
The mortgage is designed to tackle one of the biggest barriers to homeownership: saving enough for a down payment. Better say about 41% of U.S. households can’t buy a home even if they have other assets.
“For decades, the path to homeownership has required Americans to sell assets, liquidate investments, or withdraw retirement savings,” said Better CEO Vishal Garg. “This partnership introduces a new pathway for millions of Americans who hold digital assets.”
Unlike typical crypto loans, these mortgages limit risk from price swings. Borrowers won’t face margin calls or need to add more collateral if crypto values drop. Collateral is only at risk if mortgage payments fall behind by 60 days or more, similar to standard foreclosure rules.
This setup gives borrowers more flexibility, while lenders keep standard protections. Interest rates could run about 0.5 to 1.5 percentage points higher than regular mortgages.
Bridging Wealth Gaps for Younger Buyers
The move reflects how wealth is being distributed, especially among the youth in America. According to Coinbase, 45% of younger investors own crypto, while only 18% of older investors own it.
As home prices continue to outpace wages, affordability has become a growing challenge. Many investors now hold wealth in assets rather than cash, leaving them asset-rich but liquidity-constrained. Tokenized mortgages enable individuals to pledge crypto instead of selling it.
Individuals who pledge USDC may even earn interest on them, helping them to cover their mortgage costs. Coinbase is looking to expand this program to include other assets such as stocks, bonds, and even real estate.
Although similar pledged-asset mortgages exist, Fannie Mae’s involvement signals growing acceptance of crypto in U.S. home loans.
Related: $17B in Crypto Options Set to Expire Friday as Bitcoin Faces Volatility Test
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