Better Home & Finance Holding Company (NASDAQ: BETR ) and Coinbase (NASDAQ: COIN ) announced Thursday the financing of the first Fannie Mae-backed mortgage backed by Bitcoin in the United States, marking what the companies called a defining moment in bridging the gap between digital asset wealth and traditional home ownership.
The debut loan was closed by Joe and Amy, a couple in their early 30s from Ann Arbor, Michigan, who used Bitcoin holdings as collateral to fund their down payment instead of liquidating their position, the companies said.
The pair pledged their crypto through Coinbase’s escrow infrastructure and obtained a suitable 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 home buyer. “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 reach our home ownership goals. That meant everything.”
Bitcoin as a loan promise
The structure involves two separate loans. Borrowers first receive a standard 15- or 30-year Fannie Mae-backed mortgage on the home. A second, privately funded loan – secured by pledged Bitcoin or USDC – covers the down payment. Both loans carry the same interest rate and term and are consolidated into a single monthly payment.
The pledged crypto is kept in Coinbase Prime custody for the life of the loan and is returned upon full repayment.
Critically, the product has no margin calls. If Bitcoin’s price falls, borrowers are not required to add collateral, and market movements alone cannot trigger liquidation. Security is only at risk if a borrower falls at least 60 days late in payment, in accordance with standard foreclosure timelines in conventional home financing.
The product initially supports Bitcoin and USDC, with Bitcoin requiring collateral equal to 250% of the disbursement loan and USDC of 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 targets
Better said 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, 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 path was partially authorized 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.
This directive laid the foundation for this week’s announcement and product launch.