Fannie Mae Backs First Bitcoin Mortgage in US Housing Market

A Michigan couple has become the first to close a mortgage backed by Fannie Mae using Bitcoin as collateral. The loan, facilitated by Better Home & Finance and Coinbase, allows borrowers with digital assets to use them as collateral for down payments without having to sell their holdings.

The couple, Joe and Amy, received two loans at closing: a conforming Fannie Mae mortgage on the home and a second loan that funds the down payment. The second loan is secured by the borrower's pledged crypto, such as Bitcoin or USDC, along with a second lien on the home.

The product removes one of the biggest risks associated with standard crypto loans: market-triggered margin calls. If the value of the pledged assets falls after closing, the borrower is not required to add more collateral. The risk trigger is payment behavior, and delinquency begins after a missed payment. Borrowers have 30 days to bring their account current, and pledged crypto may be liquidated if they remain delinquent for 60 days.

Coinbase and Better plan to make the product available to qualified borrowers nationwide by summer 2026. The initial collateral assets are Bitcoin and USDC, with room to add more digital assets as the product matures.