Fannie Mae will now accept crypto-backed mortgages
- Mar 31
- 1 min read
Fannie Mae will now accept crypto-backed mortgages via a new product by mortgage company Better Home and Finance and Coinbase. While it’s not the first crypto-backed mortgage, it is the first accepted by government-backed Fannie Mae. The offering allows homebuyers to use their crypto assets as collateral. Fannie Mae will purchase those loans just like any other conforming mortgage.
The idea is to serve Americans who have enough crypto assets to fund a mortgage down payment but do not want to sell those assets, which would both incur taxes and forfeit any future appreciation. The new mortgage product allows them to keep the cryptocurrency and still secure home financing. To use the product, a borrower must have a Coinbase account and would take out a regular mortgage with Better, as well as a second loan, backed by either bitcoin or USD Coin. The second loan would fund the down payment on the first loan. Once the crypto assets are pledged, they cannot be traded.
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