Fannie Mae, in partnership with Coinbase and mortgage lender Better Home & Finance, has launched the first U.S. government-backed mortgage program accepting cryptocurrency as down payment collateral. Borrowers may pledge Bitcoin or USDC without selling assets-avoiding capital gains taxes.
Crypto holdings are transferred to a Better-controlled custody wallet, where USDC holders continue earning yield. Mortgage rates will be 0.5 to 1.5 percentage points higher than conventional 30-year loans, based on borrower profile.
Unlike traditional crypto loans, there are no margin calls. Even if Bitcoin’s value drops, terms remain fixed. Liquidation risk only applies after 60 days of missed payments-mirroring standard mortgage terms.
The move follows a 2023 directive from the U.S. housing regulator urging Fannie Mae and Freddie Mac to evaluate crypto in mortgage qualification. Institutional adoption is accelerating, with lenders like Newrez now assessing Bitcoin and Ethereum for loan eligibility.