Better Home & Finance and Coinbase are preparing a new mortgage product tied to Fannie Mae-backed loans, according to a Wall Street Journal report published on March 26.
Summary
- Better and Coinbase plan a mortgage product that lets homebuyers use crypto holdings as collateral.
- The reported structure would combine a standard mortgage with a separate loan backed by crypto.
- Current Fannie Mae rules require crypto conversion to dollars, making this product a policy shift.
The product would let some homebuyers use crypto as collateral instead of selling those holdings before closing.
The report said the new offer would allow buyers to “pledge their crypto holdings” when taking out a mortgage backed by Fannie Mae. Better Home & Finance would act as the lender, while Coinbase would support the crypto side of the product.
The structure would use two loans. One would be a standard Fannie Mae-backed mortgage, while the second would be backed by the borrower’s crypto assets.
Reports said Bitcoin and USDC are expected to be part of the program, but full eligibility details were not available at publication time. The report also said the pledged crypto could not be traded while it secures the loan.
Borrowers would not need to sell their digital assets for a down payment. Reports added that rates on the crypto-backed portion could run above standard mortgage pricing.
Fannie Mae’s current selling guide says virtual currency can count only after it is converted into U.S. dollars and placed in a regulated financial institution. That means this new structure would mark a change from the existing approach.
The move also follows a 2025 FHFA order that told Fannie Mae and Freddie Mac to consider crypto holdings in mortgage loan assessments. The new product would take that process further by linking crypto directly to mortgage collateral.
