Crypto-Backed Mortgages Launch as Better Home and Coinbase Let Buyers Pledge Bitcoin for Down Payments

Better Home and Finance and Coinbase announced a new mortgage program in May 2026 that allows homebuyers to pledge Bitcoin or USDC as collateral for a down payment, without having to sell their cryptocurrency holdings.

Under the program, eligible borrowers receive two loans. The first is a standard conforming Fannie Mae mortgage. The second is a separate loan secured by the pledged cryptocurrency, which Better holds through Coinbase until the mortgage is repaid.

The program targets the estimated 52 million Americans who own digital assets. Previously, lenders could not count cryptocurrency holdings toward a down payment unless the borrower first converted the crypto to cash. Fannie Mae's involvement in this program marks a significant shift in how digital assets can be used in home purchases.

The collateralization ratio is steep. A borrower pledging $100,000 in Bitcoin receives $40,000 in down payment credit. Better can liquidate the pledged crypto if a borrower falls 60 days behind on payments.

Only about 1 percent of homebuyers used cryptocurrency proceeds for down payments between July 2024 and June 2025, according to data cited by the companies. But the program's backers say demand will grow as more Americans accumulate digital assets.

The launch comes as mortgage rates remain elevated, following the 10-year Treasury yield higher. The Federal Reserve has paused rate cuts, making the housing market difficult for many buyers.

Financial advisors have offered mixed reactions to the program. Some say it gives crypto holders a way to access home equity without triggering a taxable sale of their assets. Others warn that pledging volatile assets as collateral for a mortgage carries significant risk, particularly if cryptocurrency prices drop sharply.

The program is currently available to borrowers in select states, with plans to expand nationally later in 2026.