In a groundbreaking transaction, a Michigan couple has purchased a home using Bitcoin as collateral for a Fannie Mae-backed mortgage, without selling any of their cryptocurrency. The loan, funded June 4, was closed through a partnership between Coinbase and Better Home & Finance Holding Co.
This marks the first time a government-sponsored enterprise has accepted a conforming mortgage structured with digital asset collateral.
The deal involves two loans bundled at closing: a standard Fannie Mae-backed mortgage and a separate loan collateralized by Bitcoin held in custody at Coinbase Prime. Borrowers must pledge 250% coverage, meaning $250,000 in Bitcoin for every $100,000 borrowed. For USDC, the stablecoin, the ratio drops to 125%.
Liquidation of crypto collateral doesn’t begin until 60 days of delinquency. Upon full repayment, borrowers reclaim their digital assets.
The Federal Housing Finance Agency (FHFA) issued a directive in June 2025 requiring Fannie Mae and Freddie Mac to consider digital asset holdings in mortgage risk evaluation.
Better and Coinbase announced their partnership on March 26, with the former handling lending and the latter managing custody and compliance. A nationwide rollout is expected by summer 2026, initially limited to Bitcoin and USDC. Fannie Mae has no direct exposure to Bitcoin price swings, as the crypto collateral backs the second loan, not the conforming mortgage.
The tax efficiency is a major draw: borrowers avoid triggering capital gains taxes by pledging rather than selling their Bitcoin. They retain ownership and potential upside while accessing capital.
Risks remain, including potential margin-call-style liquidations during sharp Bitcoin downturns. The 250% coverage provides some cushion, but historically, Bitcoin has dropped 70% or more multiple times.