Key Takeaways
Coinbase and Better Home & Finance have funded the first Fannie Mae-backed mortgage secured by Bitcoin, closing on a home for a Michigan couple who pledged their crypto instead of selling it for a down payment.
"Tens of millions of Americans have built real wealth in digital assets," Mark Troianovski, head of consumer and platform partnerships at Coinbase, said in a statement. "That wealth now has a direct path to homeownership, creating new opportunities for the next generation."
The product, first announced in March, uses a two-loan structure that closes simultaneously. One loan follows standard Fannie Mae conforming mortgage rules, while a second lien uses Bitcoin or USDC as collateral for the down payment. Both loans share the same rate and repayment schedule, resulting in a single monthly payment. Bitcoin-backed loans require a 2.5-to-1 collateral ratio — for example, a $100,000 down payment requires $250,000 in pledged Bitcoin — while USDC requires 1.25-to-1. The pledged crypto is held in custody through Better's account on Coinbase for the full loan term, and Better says price swings do not trigger liquidations.
The first borrowers were Joe and Amy, a married couple in their early 30s from Ann Arbor, Michigan. Joe, a software engineer, and Amy, a graduate student, had built savings in digital assets but lacked sufficient cash for a traditional down payment. By pledging their Bitcoin rather than selling, they avoided capital gains taxes and retained exposure to future price appreciation. "I didn't have to choose," Joe said in a statement. "We closed on our home and my Bitcoin stayed intact."
The mortgage program emerged after Bill Pulte, director of the Federal Housing Finance Agency, ordered the mortgage watchdog to align with President Trump's vision for making the US the "crypto capital of the world." The agency stipulated that only digital assets held on centralized exchanges — not self-custodial wallets — would qualify. Better estimates the waitlist represents $250 million in potential loan volume, with 76% of respondents already Coinbase users and 37% holding $500,000 or more in crypto. The companies plan to expand support to additional digital assets as the market matures, with a full nationwide rollout expected by summer 2026.
This article is for informational purposes only and does not constitute investment advice.
