Coinbase has announced the rollout of the first-ever Bitcoin-backed home loan program in the United States to receive support from Fannie Mae, the government-sponsored enterprise that underpins much of the country’s mortgage market. Developed in collaboration with mortgage company Better, Coinbase provides the technology infrastructure while Better manages loan origination and servicing. The new model allows eligible borrowers to use Bitcoin as collateral for down payments instead of selling their crypto assets.
Details of the new mortgage framework
According to statements from both companies, the program will be available nationwide throughout the summer. Coinbase highlighted that this offering could significantly broaden homeownership access for Americans who have built wealth through digital assets. Like other conforming mortgages, these home loans have the additional backing of Fannie Mae, ensuring reliability in the secondary mortgage market.
Mini glossary: Fannie Mae is a government-sponsored institution providing liquidity to the US housing finance system through the mortgage market. Conforming loans are mortgages that meet specific criteria and are eligible for such government backing.
Coinbase emphasized that for the first time, prospective homebuyers can pledge their crypto holdings as collateral, using BTC or USDC, without having to liquidate their positions for a down payment.
Under this system, borrowers may offer either Bitcoin or USDC stablecoin as collateral toward their down payment. This lets long-term crypto investors retain their holdings without incurring taxable events from selling. Coinbase notes that avoiding asset liquidation could help certain users minimize short-term tax burdens as well.
An additional incentive is offered to Coinbase One members: those who qualify for a mortgage under this program can receive a rebate worth 1 percent of their loan amount, up to a maximum of $10,000, to help offset closing costs or related expenses.
Mounting pressure in the US housing market
The announcement arrives as buying a home in the US is becoming increasingly challenging. Coinbase cites data showing that the median age of first-time homebuyers has risen to 40. High interest rates, surging home prices, and limited inventory are all intensifying the squeeze on prospective buyers across the nation.
The company points out that millions of Americans who have accumulated savings through digital assets often find that their crypto wealth is not considered in traditional mortgage evaluations, forcing many to liquidate their portfolios in order to qualify for financing.
By the second quarter of 2025, it’s estimated that a typical family will need to dedicate about 36 percent of their income to mortgage payments on an average-priced new home, with that figure ballooning to over 71 percent for lower-income households. This data indicates that housing affordability is a growing nationwide concern.
Traditional mortgage assessments place the most weight on income history, credit score, and cash reserves—a system favoring those with established financial profiles. Coinbase believes the new approach will allow digital asset holders’ savings to play a more functional role in the homebuying process.
Coinbase concludes that this innovative mortgage product aims to bridge the gap between cryptocurrency ownership and homeownership, enabling some borrowers to retain their crypto while gaining access to mortgage financing in a tight real estate market.
