Better, Coinbase fund Fannie Mae-backed bitcoin mortgage

Better and Coinbase introduce the first Fannie Mae-backed mortgage in the U.S. using Bitcoin as collateral, paving the way for digital assets in housing finance.

In a groundbreaking move, Better Home & Finance Holding Co. and Coinbase have announced the launch of what they claim to be the first Fannie Mae-backed mortgage in the U.S. that utilizes Bitcoin as collateral. This innovative development marks a significant step toward integrating digital assets into mainstream housing finance, a sector increasingly looking to embrace the potential of cryptocurrencies. What Does This New Mortgage Product Offer? Unveiled on June 5, 2026, the new mortgage product allows eligible borrowers to leverage their digital assets without the need to liquidate them. Instead of turning their Bitcoin into cash for a traditional down payment, homeowners can pledge their crypto holdings as collateral. This novel approach not only helps borrowers keep their investments but also sidesteps potential capital gains taxes associated with selling digital currencies. The program, which initially supports Bitcoin and the stablecoin USDC, is set to expand its offerings in the future to include additional cryptocurrencies. It is expected to be available to eligible borrowers nationwide by the summer of 2026. Who Are the First Borrowers? The first loan issued under this new regime went to a married couple in their early 30s from Ann Arbor, Michigan. According to Better and Coinbase, the borrowers—a software engineer and a graduate student—utilized their Bitcoin holdings to secure financing for their first home, demonstrating the real-world applicability of this cutting-edge mortgage solution. Why Is This Significant for Homebuyers? The launch comes at a time when housing affordability continues to be a pressing issue for many prospective homebuyers. Reports indicate that around 41% of preapproved customers from Better meet the necessary income and credit requirements but struggle to gather sufficient cash for a conventional down payment. Moreover, the National Association of Realtors reveals a disturbing trend: the median age of first-time homebuyers has reach