Fannie Mae is preparing to accept crypto-backed mortgages for the first time, potentially further integrating digital assets into mainstream housing finance.
Fannie Mae is preparing to accept crypto-backed mortgages for the first time, potentially further integrating digital assets into mainstream housing finance.
The new product, developed by Better and Coinbase, allows buyers to use cryptocurrencies such as Bitcoin or USD Coin as collateral for a down payment, rather than selling their assets, The Wall Street Journal reported on Thursday.
For agents, this shift could widen the pool of buyers, especially among customers who hold significant assets in cryptocurrencies but lack liquid cash or traditional securities for a down payment.
Borrowers who wish to take advantage of the new service will take out a compliant mortgage loan that can be sold to Fannie Mae and a second loan secured by cryptocurrencies. This second loan effectively replaces your cash down payment.
This structure allows buyers to maintain exposure to the cryptocurrency market while remaining eligible for financing, avoiding potential capital gains taxes and missing out on appreciation. But costs also increase because the borrower is carrying two loans and the interest rate can be up to 1.5 percentage points higher than a standard mortgage, according to the Wall Street Journal.
Fannie Mae does not originate loans but sets the underwriting standards used in much of the mortgage market. Embracing crypto-backed structures could signal broader legitimacy for a product that has so far remained niche.
According to Gallup, about 14% of U.S. adults will own cryptocurrencies in 2025, and a 2025 Redfin study cited by the Wall Street Journal found that nearly 13% of Gen Z and Millennial buyers sold their cryptocurrencies to finance a home purchase.
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