Better Home & Finance Holding Company (NASDAQ: BETR) and Coinbase (NASDAQ: COIN) on Thursday announced the funding of the first Fannie Mae-backed mortgage collateralized by Bitcoin in the United States, marking what the companies called a pivotal moment in bridging digital asset wealth and traditional homeownership.
The debut loan was closed by Joe and Amy, a married couple in their early 30s from Ann Arbor, Michigan, who used Bitcoin holdings as collateral to fund their down payment rather than liquidating their position, the companies said.
The couple pledged their crypto through Coinbase’s custody infrastructure and obtained a conforming mortgage through Better without incurring capital gains taxes or surrendering their long-term exposure to Bitcoin’s potential upside.
“Buying our first home has always been the goal, but I wasn’t willing to give up a decade of investing to get there,” said the homebuyer. “With this mortgage, I didn’t have to choose. We closed on our home and my Bitcoin stayed intact. We didn’t have to liquidate, didn’t have to time the market, and didn’t have to start over financially to achieve our homeownership goals. That meant everything.”
Bitcoin as a loan pledge
The structure involves two separate loans. Borrowers first receive a standard 15- or 30-year Fannie Mae-backed mortgage on the property itself. A second, privately financed loan — secured by pledged Bitcoin or USDC — covers the down payment. Both loans carry the same interest rate and term, consolidating into a single monthly payment.
The pledged crypto is held in Coinbase Prime custody for the life of the loan and returned upon full repayment.
Critically, the product carries no margin calls. If Bitcoin’s price declines, borrowers are not required to add collateral, and market movements alone cannot trigger liquidation. Collateral is only at risk if a borrower falls at least 60 days delinquent on payments, consistent with standard foreclosure timelines in conventional housing finance.
The product initially supports Bitcoin and USDC, with Bitcoin requiring collateral equal to 250% of the down payment loan and USDC at 125%. Better CEO Vishal Garg has noted plans to eventually expand eligible assets to include tokenized equities, fixed income, and other real estate assets.
The problem it’s targeting
Better said that 41% of its pre-approved customers qualify on income and credit but lack the cash for a traditional down payment. That gap has widened as homeownership has grown increasingly out of reach: the median age of first-time homebuyers in America hit a record 40 years old, up sharply from 32 a decade ago, according to the National Association of Realtors.
The product is designed to serve buyers whose wealth is concentrated in digital assets rather than liquid cash or traditional savings accounts.
The regulatory pathway was cleared in part by a June 2025 directive from the Federal Housing Finance Agency (FHFA) instructing Fannie Mae and Freddie Mac to recognize digital assets as eligible collateral in the $18.5 trillion mortgage market.
That directive laid the groundwork for this week’s announcement and product launch.