A Michigan couple secures a Fannie Mae loan using Bitcoin as collateral, marking a milestone for crypto-backed real estate financing.
Coinbase and mortgage lender Better have closed the first Fannie Mae-backed home loan using Bitcoin as collateral. The transaction allows borrowers to pledge Bitcoin for a down payment without selling the asset, avoiding immediate taxable events while maintaining crypto exposure.
The product, announced in March, supports Bitcoin and Circle’s USDC, with Better originating the mortgage and Coinbase providing crypto account infrastructure. It targets qualified borrowers nationwide starting this summer. A $100,000 down payment, for example, requires pledging $250,000 in Bitcoin as collateral.
The lender stated that ordinary market volatility will not trigger margin calls or liquidations, though pledged crypto may be sold after a 60-day payment delinquency.