Fannie Mae to accept first cryptocurrency-backed mortgages

Published: Thursday, March 26, 2026 at 7:01 pm

Fannie Mae to Embrace Cryptocurrency-Backed Mortgages

Fannie Mae, in a groundbreaking move, has announced it will begin accepting mortgages backed by cryptocurrency. This initiative, a first for the government-sponsored enterprise, is being undertaken in partnership with Coinbase and Better Home & Finance. The companies believe this new product could open doors to homeownership for a wider range of Americans.

The innovative mortgage structure allows individuals holding cryptocurrency to leverage their digital assets without selling them. Instead of converting crypto holdings to cash, which could trigger capital gains taxes, borrowers can pledge their cryptocurrency as collateral for a separate loan. This loan covers the down payment on a property.

Under this system, buyers will essentially have two loans: a standard Fannie Mae mortgage and a separate loan secured by their cryptocurrency holdings. The borrower's crypto assets will remain in a Coinbase Prime account managed by Better for the duration of the loan. Once the down payment loan is repaid, the cryptocurrency is returned to the borrower. Importantly, the terms of the mortgage will remain unaffected by any fluctuations in the value of the cryptocurrency. Borrowers will make a single monthly payment to Better, which manages both loans.

This partnership is seen as a significant step towards making homeownership more accessible, particularly for younger generations who may face challenges in saving for a traditional down payment. The companies involved believe this approach will help the 52 million Americans who own digital assets realize their homeownership dreams.

BNN's Perspective: This move by Fannie Mae represents a fascinating evolution in the mortgage market. While the concept of using cryptocurrency as collateral is innovative, it also introduces new complexities and risks. The long-term implications of this approach, particularly concerning the volatility of cryptocurrency values, warrant careful monitoring. It is crucial for both borrowers and lenders to fully understand the terms and potential risks involved before entering into such agreements.

Keywords: Fannie Mae, cryptocurrency, mortgages, Coinbase, Better Home & Finance, homeownership, digital assets, collateral, down payment, loans, Federal Housing Finance Agency, crypto-backed mortgages, crypto assets, capital gains taxes, mortgage terms, Vishal Garg, Max Branzburg

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