Better Home & Finance Holding Company (NASDAQ: BETR) and Coinbase (NASDAQ: COIN) on Thursday announced the financing of the first Fannie Mae-backed mortgage backed by Bitcoin in the United States, marking what the companies called an important moment in bridging digital asset wealth and traditional home ownership.
The first loan was closed by Joe and Amy, a married couple in their early 30s from Ann Arbor, Michigan, who used their Bitcoin holdings as collateral to fund their down payment rather than liquidate their position, the companies said.
The couple pledged their crypto using Coinbase’s custodial infrastructure and received mutual funds through Better without incurring capital gains taxes or recouping their long-term exposure to Bitcoin’s rise.
“Buying our first home has always been a goal, but I wasn’t willing to give up ten years of investing to get there,” said the buyer. “With this loan, I didn’t have to choose. We closed on our home and my Bitcoin stayed intact. We didn’t have to pay, we didn’t have to stop the market, and we didn’t have to start over financially to achieve our homeownership goals. That meant everything.”
Bitcoin as collateral for loans
The structure involves two separate liabilities. Borrowers first get a 15- or 30-year loan financed by Fannie Mae on the property itself. The second, privately funded debt – secured by pledged Bitcoin or USDC – includes a down payment. Both loans have the same interest rate and term, which includes a monthly payment.
The pledged crypto is held in Coinbase Prime’s stock for the life of the loan and returned when fully paid.
Importantly, the product has no margin calls. If the price of Bitcoin falls, borrowers do not have to add collateral, and market movements alone cannot cause liquidation. The collateral is only at risk if the borrower is at least 60 days delinquent in payments, in accordance with standard mortgage foreclosure periods.
The product initially supports Bitcoin and USDC, with Bitcoin requiring a collateral equal to 250% of the installment loan and USDC at 125%. Better CEO Vishal Garg noted plans to eventually expand eligible assets to include equity tokens, fixed income, and other commodities.
Targeted problem
Better said 41% of its pre-approved customers qualify for income and credit but don’t have a traditional down payment. That gap has widened as homeownership has become increasingly out of reach: the median age of first-time homebuyers in America has hit a record 40 years, up from 32 a decade ago, according to the National Association of Realtors.
The product is designed to help wealthy consumers invest their wealth in digital assets instead of cash or traditional savings accounts.
The regulatory framework was partially cleared by a June 2025 order from the Federal Housing Finance Agency (FHFA) ordering Fannie Mae and Freddie Mac to recognize digital assets as appropriate securities in the $18.5 billion real estate market.
That order laid the groundwork for this week’s announcement and product launch.
