Groundbreaking: US National Mortgage Association Debuts Crypto-Backed Offerings

The United States National Mortgage Association, also known as Fannie Mae, has announced that it will begin accepting crypto‑backed mortgages. For the first time, qualified homebuyers can use cryptocurrency holdings such as Bitcoin or USDC as collateral in the mortgage process. Instead of selling these digital assets, they can keep them while securing a loan.

The move follows guidance from the Federal Housing Finance Agency (FHFA), which has been encouraging lenders to consider crypto as part of borrowers’ financial profiles. 

A Historic Shift in Home Financing

Fannie Mae partnered with Coinbase and Better Home & Finance to launch the offering. Notably, the product targets everyday homebuyers, not just the wealthy. 

According to Better founder Vishal Garg, roughly 41% of American families fail to buy a home simply because they lack the cash for a down payment, even when they hold savings elsewhere. With this new option, they can demonstrate financial strength without selling those assets. As a result, this approach marks a shift from earlier crypto-backed mortgage products that mainly served high-net-worth clients. 

Moreover, Garg estimated that if crypto collateral had been accepted earlier, Better could have funded up to $40 billion more in mortgage demand. This highlights the scale of unmet demand the new model could unlock.

How Crypto Mortgages Work

As a major U.S. housing finance player, Fannie Mae buys loans from banks and packages them into securities for investors. This helps keep the mortgage market liquid and stable without lending directly.

Under the new setup, borrowers would still take out a traditional Fannie Mae–approved mortgage. This means the loan carries the same protections and standards as a regular conforming mortgage. In addition, they take out a second loan secured by their crypto assets. 

That second loan covers what would normally be paid in cash as a down payment. This lets buyers keep their crypto and avoid triggering capital gains taxes. Interest rates on these loans are slightly higher than standard 30-year mortgages. They range roughly from 0.5% to 1.5% above normal rates, depending on the borrower’s profile. 

Additionally, the loans are free of margin calls. If the value of Bitcoin or other collateral drops, the mortgage terms remain unchanged, and no additional collateral is required. Collateral is only at risk if a borrower falls 60 days behind on payments, just like in conventional mortgages.

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