Coinbase Opens Door To Bitcoin-Backed Mortgages

First Fannie Mae-Backed Bitcoin Mortgage Closes

Coinbase and mortgage lender Better Home & Finance have taken a significant step toward bringing digital assets into mainstream home financing. The two companies funded the first Fannie Mae-backed mortgage in the United States that uses $BTC as collateral, marking a new milestone in the integration of digital assets into traditional home financing. They also confirmed plans to make the product available to qualified borrowers nationwide by summer 2026.

The structure combines a standard Fannie Mae-conforming mortgage with a separate loan collateralized with crypto to cover the down payment. Better said the product carries no margin calls and no top-ups, meaning that if the price of Bitcoin drops, the mortgage terms remain stable with no additional collateral requirements and market movements alone never trigger liquidation. The crypto collateral sits in a custodial account on Coinbase's platform throughout the loan period, and the product is available on 15 and 30-year fixed-rate terms.

The inaugural loan was issued to a married couple in Ann Arbor, Michigan, who used their Bitcoin holdings to support the purchase of their first home. The structure enabled the borrowers to secure financing without liquidating their digital assets, avoiding a taxable sale and maintaining exposure to their long-term investment position.

Regulatory Groundwork and Who It Targets

The product did not emerge in isolation. The launch follows the US Federal Housing Finance Agency's directive in June 2025 instructing Fannie Mae and Freddie Mac to include crypto assets in mortgage risk assessments without requiring conversion into fiat currency. The Federal Housing Finance Agency, which serves as Fannie Mae's conservator, has been increasingly supportive of cryptocurrency, a stance that appears to be opening the door for more products of this kind.

Better said that 41% of its pre-approved customers meet income and credit requirements but lack sufficient cash for a conventional down payment. The move is also aimed at making homeownership more accessible to a younger demographic more likely to hold crypto, with Coinbase describing token-backed mortgages as "a major first step to unlocking homeownership for the younger generations."

Better cited changing household balance sheets and the growing role of digital assets in personal wealth accumulation as key reasons for building the product. At launch, eligible collateral is limited to $BTC and $USDC. The companies said additional digital assets could be added in the future, subject to market and regulatory developments.

Some US senators have expressed concerns that cryptocurrency price volatility could threaten housing market stability. Still, the involvement of Fannie Mae gives the product a level of institutional credibility that earlier crypto mortgage offerings lacked.

Sources:
Better and Coinbase official press release via Business Wire
HousingWire: Better, Coinbase fund Fannie Mae-backed bitcoin mortgage
The Crypto Times: Better and Coinbase Bring Fannie Mae-Backed Bitcoin Mortgage Loan