Fannie Mae is accepting cryptocurrency-backed mortgages for the first time. The government-sponsored mortgage giant, which backs roughly $4.3 trillion in U.S. home loans, announced the program Thursday through a partnership with Coinbase and mortgage lender Better Home & Finance.

How It Works

Borrowers can pledge Bitcoin or USDC as collateral for a down payment without selling their holdings. Assets transfer from Coinbase into a Better-managed custody wallet, where the borrower retains ownership. USDC holders continue earning rewards while their assets serve as collateral.

The mortgages are structured as standard Fannie Mae conforming loans but carry rates 0.5 to 1.5 percentage points higher than conventional 30-year mortgages, depending on borrower profiles.

One notable feature: no margin calls. If Bitcoin drops in value, the mortgage terms stay unchanged and no additional collateral is required. The only liquidation risk comes from the standard 60-day payment delinquency terms — same as any conventional mortgage.

Regulatory Background

The move follows a directive last year from the U.S. Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, ordering the agencies to begin assessing crypto holdings in mortgage qualification. Major lenders have been preparing: mortgage giant Newrez announced earlier this year it was evaluating Bitcoin and Ethereum for qualification purposes.

Why It Matters

For crypto holders who have built significant wealth in digital assets, this program removes a longstanding friction: selling crypto to fund a home purchase triggers taxable events. The Coinbase-Better structure sidesteps that entirely.

It also marks the first time a government-backed mortgage entity has formally integrated crypto collateral — a structural step that separates this from earlier pilot programs at private lenders.