Crypto Mortgages: Coinbase, Fannie Mae Launch New Home Loan Model

Fannie Mae will accept crypto mortgages through a new partnership with Coinbase and Better Home & Finance. The product allows homebuyers to use Bitcoin or USDC instead of cash for down payments.

The update was reported on March 26, 2026, by the Wall Street Journal (WSJ). It marks a major shift in how digital assets integrate with traditional housing finance. Also, it reflects an increasingly interconnected relationship between digital assets and traditional financial institutions.

Bitcoins Crypto Mortgages Replace Cash Down Payments

Homebuyers will have the option to pledge either Bitcoin or USDC as collateral to help secure their home purchase. With these crypto mortgages, they can hold onto their crypto investments, rather than being forced to sell some portion of their investment portfolio. 

As such, the crypto mortgage is a conforming loan backed by Fannie Mae. Therefore, it includes the same protections and standards as all other types of mortgages. 

Coinbase indicated that the product is aimed at helping everyday homebuyers to gain access to affordable mortgage options. It is not limited to wealthier investors who would likely find ways to obtain funding, whether or not this product existed.

Furthermore, the product provides an additional avenue for access to home financing for those holding cryptocurrencies. They were previously denied this opportunity due to their inability to secure financing through conventional means.

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Bitcoins Avoiding Capital Gains Taxes 

By using this method, homebuyers are not required to sell any of their cryptocurrency. Thus, they avoid any taxable events related to the sale of digital currencies. 

They continue to benefit from their exposure to the digital currency market while simultaneously providing the financing their homes. According to Coinbase, this loan model works similarly to private banking, where customers borrow money against their existing assets.

This enables investors to generate liquidity for a specific purpose (in this case, purchasing a home). At the same time, they remain invested in whatever crypto assets they currently own.

Users of this product will put their cryptocurrency into a custodial wallet, which is directly tied to the mortgage lender. As such, they will retain full ownership exposure to their cryptocurrency throughout the life of the loan. They also still have the funds available for immediate withdrawal when needed.

Bitcoins Loan Terms And Interest Rate Options

Most standard mortgages provide borrowers with one type of loan term and one set of interest rate options. However, a borrower utilizing a crypto mortgage will need to enter into a standard mortgage agreement. In addition, they will need a separate loan for the down payment, funded by pledging their cryptocurrency as collateral. 

For example, interest rates on the crypto-loan component of the mortgage package will generally be 0.5-1.5% higher than comparable rates for a standard mortgage. There is no risk of liquidating the crypto collateral as a result of fluctuating market values. 

However, if the borrower fails to make timely payments for more than 60 days, the lender will begin taking steps toward liquidating the pledged cryptocurrency.

This eliminates much of the inherent risk of “margin calls” typically present in other forms of cryptocurrency-based lending arrangements. But it potentially increases the overall expense of owning a home over time.

Bitcoins Increased Demand For Crypto Mortgages

Approximately 41% of U.S. households possess sufficient assets to meet down payment requirements. However, they do not have enough savings for down payments on houses. Rising interest rates and increasing house prices continue to burden potential homebuyers. 

Despite the announcement of Fannie Mae’s acceptance of crypto mortgage applications, BTC is trading at $69,488. It is lower by approximately 2.5% in the past 24 hours, according to TradingView data. 

If Fannie Mae continues to expand its crypto mortgage offerings, it could significantly expand demand for these financial instruments across the wider housing industry.

Bitcoins Regulatory Support And Potential Market Growth

In June 2025, the Federal Housing Finance Agency instructed Fannie Mae to explore the possibility of allowing crypto assets to be used as collateral for certain financial transactions. The FHFA’s direction is consistent with broader government support for innovation in digital assets. 

This includes facilitating increased financial interconnectivity among various digital assets. Since Donald J. Trump took office in January 2025, he has continued to establish his pro-crypto agenda, which he made during his presidential campaign.

He has consistently advocated for greater levels of financial integration between cryptocurrencies and traditional forms of finance.

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