Fannie Mae set to recognize crypto-backed down payments in new Coinbase-linked mortgage
Fannie Mae is poised to accept Bitcoin-backed mortgages for the first time, according to the Wall Street Journal. Better Home & Finance, working with crypto exchange Coinbase, plans to launch a new mortgage offering on March 26 that lets homebuyers use crypto holdings to help secure a Fannie Mae-backed loan.
Crypto-backed mortgage products already exist, but Fannie Mae's involvement could accelerate broader adoption given its federal backing and oversight by the Federal Housing Finance Agency.
Under the program, borrowers can pledge Bitcoin (BTC) or USD Coin (USDC) as collateral to satisfy a down payment requirement. The loan is structured as a conforming mortgage, meaning it adheres to standard underwriting rules and protections used in traditional home loans.
For borrowers who already custody crypto on Coinbase, the process is designed to be streamlined. Instead of selling assets, users can move their digital holdings from the exchange into a custody wallet while retaining ownership rights.
The WSJ report said the product will not include margin calls or requirements to post additional collateral if crypto prices fall. Mortgage terms would remain unchanged even if BTC declines, and price volatility alone would not trigger liquidation. Collateral would only be at risk if the borrower becomes 60 days past due on payments.
Bitcoin slipped 3.14% on the day to about $69,410, roughly in line with a broader market drop of around 3.07%. The pullback was attributed to macro headwinds and institutional selling, alongside risk-off sentiment. Derivatives activity added pressure, with about $61.7 million in Bitcoin liquidations over the past 24 hours, primarily from long positions.
Technically, holding above $69,400 could open the door to a rebound toward roughly $71,300. A break below $69,000 would increase the risk of a move down to around $67,800. Longer term, analysts remain constructive on Bitcoin's "digital gold" narrative.
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