Fannie Mae will accept mortgages backed by cryptocurrency collateral for the first time. The initiative is a partnership between crypto exchange Coinbase and mortgage lender Better Home & Finance.
Homebuyers can pledge Bitcoin (BTC) or USDC as collateral for down payment loans. This structure allows buyers to secure homes without selling digital assets or incurring capital gains taxes.
Better Home & Finance will originate and service the mortgages. The loans conform to Fannie Mae’s standard guidelines, making them eligible for the same backing as traditional mortgages.
This development integrates digital assets into the mainstream U.S. housing market. Fannie Mae’s underwriting standards could drive broader acceptance of crypto-collateralized lending.