- Fannie Mae will allow crypto-backed mortgages for the first time.
- Better Home & Finance and Coinbase are partnering to offer the mortgages.
- Borrowers can pledge bitcoin or USDC for down payments instead of cash.
- Interest rates could be up to 1.5 percentage points higher than standard loans.
Fannie Mae Opens Door to Crypto Mortgages
Fannie Mae will soon accept crypto-backed mortgages, marking the first time the federal mortgage giant will buy home loans where buyers pledge bitcoin or other digital currencies, reports the WSJ. The new mortgage product is being rolled out by Better Home & Finance in collaboration with Coinbase, offering buyers the option to use crypto holdings for down payments without liquidating their assets.
Who Will Benefit
This new approach targets buyers who want to retain their crypto exposure or avoid capital gains taxes from crypto sales. Younger buyers, especially millennials and Gen Z, are already turning to crypto for home purchases. About 13% recently sold crypto holdings to fund down payments, per a 2025 Redfin survey.
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How Crypto-Backed Mortgages Work
Through this product, buyers get a traditional 15- or 30-year Fannie-backed mortgage and take out a separate loan backed by pledged bitcoin or USDC to cover the down payment. The pledged crypto must remain untouched while the loan is outstanding. If the value of the pledged crypto falls, it won’t impact the mortgage as long as payments are made. Rates for crypto-backed mortgages may be up to 1.5 percentage points above standard Fannie Mae mortgage rates, at a time when federal housing agencies are already reassessing how emerging asset classes and nontraditional financing fit into mortgage underwriting frameworks.
Niche Product, Mainstream Impact
Crypto-backed mortgages have been a niche offering until now, with fintech firms like Milo serving around 100 customers since 2022. Fannie Mae’s involvement could expand the appeal and legitimacy of these products, integrating digital assets into broader real estate finance. As more US home buyers accumulate crypto, industry experts expect demand for crypto-backed mortgages to grow further.
