Americans Can Now Use Crypto to Qualify for a Mortgage—What Changes?
Fannie Mae now allows U.S. homebuyers to use cryptocurrency held on regulated exchanges like Coinbase as collateral for down payments, backed by a pilot program with Better Home & Finance. The loans require borrowers to pledge crypto worth at least 125-250% of the down payment and combine it with a traditional mortgage, but the program is limited to one lender and exchange for now.
The Federal Housing Finance Agency (FHFA) has directed Fannie Mae to accept cryptocurrency as mortgage collateral, enabling U.S. homebuyers to use digital assets like bitcoin or USDC stablecoin for down payments without selling them. Under the new rules, borrowers will take out two loans: a traditional Fannie Mae-backed mortgage from Better Home & Finance and a separate crypto-secured loan, which are combined into a single payment. The crypto collateral must be held on U.S.-regulated exchanges like Coinbase and cannot be traded once pledged. Only crypto held on approved exchanges qualifies, with borrowers required to provide collateral worth at least 250% of the down payment if using bitcoin or 125% if using USDC. Approved borrowers will receive a 1% lender credit against closing costs, up to $10,000, when using Coinbase. The loans’ terms and interest rates remain unchanged even if crypto values fluctuate, as long as payments are made. This program marks the first time Fannie Mae, which backs most U.S. mortgages, has endorsed crypto-backed loans, though it remains a pilot initiative with limited availability. Better Home & Finance is the sole lender participating, and borrowers must join a waitlist for the program. The FHFA’s move reflects growing mainstream acceptance of cryptocurrency in traditional financial sectors, though the offering remains niche for now. While the program avoids capital gains taxes by preventing crypto sales, taking out a second loan increases costs compared to conventional mortgages. The pilot phase suggests Fannie Mae may expand the program if successful, potentially paving the way for broader adoption of crypto in home financing. As of now, bitcoin trades around $76,960 and ethereum near $2,130, though market volatility could impact collateral values over time. The program’s success hinges on whether borrowers and lenders adapt to the new structure, with industry experts noting this could set a precedent for future financial products.
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