Fannie Mae, the U.S. mortgage giant covering nearly 40% of the market, has taken a historic step by accepting cryptocurrency as part of the mortgage evaluation process. According to a Coinbase announcement, the company collaborated with Fannie Mae and fintech lender Better Home & Finance to launch a mortgage product that allows crypto as down payment collateral.
This policy shift lets digital asset holders bypass the need to liquidate holdings before buying a home. Previously, many young buyers had to sell BTC or USDC to raise cash for a down payment. Now that barrier has fallen.
Dual-Structure Loan: No Forced Liquidation or Tax Hit
The new loan adopts a dual-track structure. For USDC holders, staked assets can still earn rewards. Supported assets are Bitcoin (BTC) and USDC, stored on U.S.-regulated exchanges and custodied by Coinbase Prime. Borrowers retain ownership during the loan term but cannot trade the locked assets until repayment.
Market volatility does not trigger margin calls or forced liquidations. Even if Bitcoin price crashes, as long as the borrower makes monthly payments, loan terms remain unchanged. Only after 60 consecutive days of default would the crypto collateral be liquidated, similar to traditional foreclosure processes.
However, interest rates are 0.5 to 1.5 percentage points higher than conventional mortgages, reflecting the cost of crypto asset management and giving borrowers a trade-off between keeping upside potential and securing a home.
Policy Driver: From Executive Order to Housing Finance Reform
The shift originated from a directive by the Federal Housing Finance Agency (FHFA). On June 25, 2025, FHFA Director Bill Pulte asked Fannie Mae and Freddie Mac to propose rules treating crypto as a formal asset class for risk assessment. Senator Cynthia Lummis's 21st Century Mortgage Act also pushed GSEs to consider digital assets.
Regulation remains cautious: only assets on U.S.-regulated exchanges qualify, not those on decentralized exchanges or cold wallets. Industry experts predict banks may apply a steep haircut, counting only 10% of crypto market value toward eligibility.
Yet mainstream adoption is accelerating. Mortgage servicer Newrez launched crypto-backed mortgages in late 2025, and lending platform Rate started the RateFi program allowing crypto holdings as reserves. Crypto is gradually embedding into every layer of mortgage lending.