Coinbase, Fannie Mae bring crypto-backed mortgages to home buyers

Coinbase is partnering with Better Home & Finance Holding Co., a Fannie Mae-approved mortgage seller, to allow crypto holders to use their digital assets, specifically Bitcoin or USDC, as collateral for home down payments. These mortgages are structured as conforming loans backed by Fannie Mae, offering the same protections as traditional mortgages. This structure allows borrowers to fund their down payment without selling their crypto, thus avoiding immediate taxable events. Better founder Vishal Garg noted that many families lack down payment funds despite having wealth elsewhere, and this product addresses that gap. The crypto collateral is held in a custody wallet with Better, and borrowers retain ownership rights. While the rates will be slightly higher than standard 30-year mortgages (0.5% to 1.5% more), the loans are free of margin calls or top-ups based on market movements; liquidation of collateral only occurs after a 60-day payment delinquency.

(Source：CoinDesk)