Better Home & Finance and Coinbase are collaborating on a new mortgage product that would allow homebuyers to use their crypto holdings as collateral, combining a standard mortgage with a separate crypto-backed loan. This would be a departure from current Fannie Mae rules that require crypto to be converted into dollars. The product would involve two loans, with one backed by Fannie Mae and the other by the borrower’s crypto assets. Bitcoin and USDC are expected to be included, and borrowers would not need to sell their digital assets for a down payment. Rates for the crypto-backed portion may be higher than standard mortgage pricing. This new product would represent a policy shift and align with a 2025 FHFA order to consider crypto holdings in mortgage loan assessments.

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