Fannie Mae Backs Crypto-Collateralized Mortgages
Under a new Fannie Mae-backed program, borrowers can now use Bitcoin or USDC as collateral for down payments through a structure that keeps the primary mortgage in traditional underwriting. Coinbase Prime holds the crypto for the loan's duration while Better Home & Finance originates both the standard mortgage and the separate crypto-collateralized loan.
Key Takeaway
Crypto moves from speculative asset to home-buying collateral with full government backing.
Borrowers can pledge Bitcoin or USDC as collateral for mortgage down payments under a new program backed by Fannie Mae, the US government-run housing institution.
The product structures a second loan funded by digital asset collateral, while the primary mortgage remains within traditional underwriting and is eligible for purchase by Fannie Mae. Coinbase Prime holds the crypto for the life of the loan. Better Home & Finance, a Fannie Mae-approved seller and servicer, originates both the standard mortgage and the separate crypto-collateralized down payment loan.
Coinbase Global Head of Investment Research David Duong said the structure shifts price speculation toward balance sheet utility. The product reinforces the narrative of crypto as productive collateral rather than just a speculative asset.
Borrowers must overcollateralize at 250% for Bitcoin and 125% for USDC. No margin calls occur unless the borrower defaults after 60 days of delinquency. Coinbase One members receive a 1% rebate on mortgage value, capped at ₱602,566 ($10,000).
The timing arrives as Bitcoin trades at ₱4,000,737 ($66,395) after falling 47% from its October 2024 peak. Solana dropped 72% during the same stretch. The industry suffered a ₱120.51 trillion ($2 trillion) drawdown across the period.
Federal Housing Finance Agency Director Bill Pulte issued the directive in June 2025 instructing Fannie Mae and Freddie Mac to prepare for treating crypto as a mortgage asset. Coinbase Head of Research Max Branzburg said many crypto investors avoided home purchases to prevent selling holdings and triggering capital gains taxes. Better Home & Finance Founder Vishal Garg noted that 41% of American families fail to buy homes due to lacking cash for down payments despite other savings.
This article was written based on reporting from Dlnews.
