Buy a Home With Bitcoin: Coinbase, Fannie Mae Bring Crypto Mortgages to Mainstream Buyers

Coinbase is partnering with Better Home & Finance to introduce crypto-backed mortgages that adhere to Fannie Mae conforming loan standards. This new offering allows qualified borrowers to pledge Bitcoin or USDC as collateral for a down payment without selling their digital assets, thereby avoiding immediate capital gains taxes and maintaining asset exposure. The mortgages are structured like traditional Fannie Mae loans, with Better originating and servicing them, and Coinbase handling custody. This product addresses the significant barrier of insufficient liquid cash for down payments, which prevents many Americans from buying homes despite holding other wealth, including digital assets. Unlike typical crypto lending, these loans avoid margin calls or collateral top-ups based solely on market fluctuations; collateral is only at risk after 60 days of payment delinquency. While interest rates are expected to be slightly higher than conventional mortgages, Coinbase views this as a milestone in transforming digital wealth into housing access, especially for younger generations who hold significant crypto wealth. The partnership signals a major shift toward integrating digital assets into mainstream U.S. mortgage infrastructure.

(Source：Bitcoin Magazine)