BREAKING: Fannie Mae Now Accepts Bitcoin, USDC for Down Payments in Historic Crypto Mortgage Shift
Fannie Mae, the U.S. government-backed mortgage giant, has entered crypto-backed lending for the first time, allowing home buyers to pledge digital assets like Bitcoin or USDC for down payments instead of cash. The landmark product, launching Thursday through partners Better Home & Finance and Coinbase, directly integrates cryptocurrency into the core of American housing finance and is set to reshape market standards nationwide under Federal Housing Finance Agency oversight.
Fannie Mae brings crypto into mortgage underwriting as demand from digital asset holders grows
The direction came earlier this year when Bill Pulte, who runs the Federal Housing Finance Agency, told Fannie Mae and Freddie Mac to start preparing to treat crypto as a real asset on mortgage applications.
Around 14% of U.S. adults held crypto in 2025. At the same time, prices have dropped hard, with Bitcoin down more than 40% from its October peak. Even with that decline, people still use crypto to buy homes. A Redfin survey showed nearly 13% of younger buyers sold their holdings to fund down payments.
The new structure is built for people who do not want to sell. Many avoid selling because of taxes or because they want to stay in the market.
Max Branzburg from Coinbase said, “A lot of those crypto owners and investors have not been able to become homeowners.” He added, “We haven’t really had the best way to service that need.”
Better and Coinbase roll out crypto-backed loan structure while mortgage costs rise across the market
The loan works in two parts. The buyer takes a standard 15 or 30-year mortgage through Better that gets backed by Fannie Mae. Then a second loan is added, backed by crypto, to cover the down payment. That removes the need to sell holdings upfront.
This setup costs more. Borrowers now pay interest on two loans, and rates can run up to 1.5 percentage points higher than normal Fannie loans. Once the crypto is locked into the deal, it cannot be traded. Vishal Garg, the CEO of Better, said the loan stays in place even if prices fall, as long as monthly payments are made.
Fannie Mae does not issue loans itself. It buys mortgages from lenders, bundles them, and sells them to investors while guaranteeing payments. Because of that role, its rules shape how most mortgages are written in the U.S.
Right now, Milo, a Miami fintech offering crypto mortgages since 2022, allegedly has just over 100 customers, meaning the market is pretty small.
And what’s more, just as Fannie is rolling out its thing, the U.S. housing market is tightening at the same time. Mortgage applications dropped 10.5% in one week. The average 30-year fixed rate rose to 6.43% from 6.30% for loans up to $832,750, with points increasing to 0.65.
Joel Kan from the Mortgage Bankers Association said, “The threat of higher for longer oil prices continued to keep Treasury yields elevated.”
He said the 30-year rate is now more than 30 basis points higher than late February and sits at its highest level since October 2025.
Refinance demand fell 15% for the week but stayed 52% higher than a year ago. Its share dropped to 49.6% from 60% earlier in the year. Applications to buy homes fell 5% for the week and are only 5% higher than the same time last year.
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