$4.1 Trillion Fannie Mae to Accept Crypto for Mortgage Down Payments

Mortgage giant Fannie Mae is set to soon allow crypto-backed down payments on U.S. home loans. The initiative involves Better Home & Finance and Coinbase Global, letting buyers pledge crypto instead of cash. The move follows direction from the Federal Housing Finance Agency and aims to expand access for crypto holders seeking mortgages.

Fannie Mae Crypto Integration Into Mortgage Lending

As per The WSJ, the new product allows buyers to secure a standard 15- or 30-year Fannie-backed mortgage through Better. However, instead of a cash down payment, borrowers take a separate loan backed by crypto assets.

In the news structure, homebuyers can pledge Bitcoin and USDC. The structure lets buyers keep their crypto holdings while still accessing traditional housing finance.

According to Max Branzburg of top crypto exchange Coinbase, cited by WSJ, many crypto investors avoided homeownership due to liquidation concerns. He said the product addresses that gap by offering an alternative to selling digital assets.

Meanwhile, Fannie Mae does not originate loans directly. It buys mortgages, packages them, and guarantees payments to investors.

Structure and Cost of Digital Asset-Backed Mortgages

The dual-loan structure increases overall borrowing costs for buyers. Borrowers pay interest on both the primary mortgage and the crypto-backed loan. Interest rates may match typical Fannie-backed loans or rise up to 1.5 percentage points higher.

This adjustment shows the added difficulty and risk of the structure. Once pledged, borrowers cannot trade their crypto holdings. However, Better CEO Vishal Garg said price drops do not affect the mortgage if payments continue.

This approach differs from traditional margin-based lending. It removes liquidation risk tied to falling crypto prices, provided borrowers meet payment obligations.

Policy Change and Growing Adoption 

The program follows a directive issued in June by FHFA Director Bill Pulte. He instructed Fannie Mae and Freddie Mac to prepare for counting crypto as a mortgage asset. As per the WSJ, about 14% of U.S. adults owned cryptocurrencies in 2025. Meanwhile, nearly 13% of younger buyers sold crypto to fund down payments.

However, digital asset-backed mortgages remain limited in scale. Miami-based fintech Milo has served just over 100 customers since launching a similar product in 2022. Milo CEO Josip Rupena said many clients resemble foreign buyers with strong assets but limited traditional credit profiles. 

Meanwhile, other lenders have begun testing similar models. Non-bank lender Newrez now accepts certain crypto holdings in mortgage applications without requiring conversion to cash. Key details for the Fannie-backed product remain unclear. These include how collateral values are set and what risk controls apply.