Fannie Mae Accepts Bitcoin-Backed Mortgages in Historic Move

Fannie Mae is breaking new ground in mortgage lending by accepting Bitcoin-backed mortgages for the first time. A partnership between Coinbase and Better Home & Finance has launched a mortgage product that allows qualified borrowers to use Bitcoin or USDC as collateral for a down payment on a Fannie Mae-backed mortgage.

The structure of this loan keeps buyers' exposure to their digital assets intact, unlike traditional mortgage options where they would need to sell them to raise cash. A standard conforming loan backed by Fannie Mae is the primary mortgage in this arrangement.

A separate overcollateralized loan secured by the pledged crypto funds the down payment, which Coinbase will hold in custody through its Prime service for the life of the loan. The assets are returned to the borrower once the loan is repaid.