According to the National Housing Conference (NHC), Fannie Mae will begin accepting cryptocurrency-backed assets as down payments under a new mortgage product, allowing borrowers to use crypto in place of cash for a Fannie Mae-backed mortgage. The product, offered by Better Home & Finance in partnership with Coinbase, marks the first time the government-sponsored enterprise has incorporated digital assets into its framework for evaluating borrower eligibility. Federal Housing Finance Agency (FHFA) Director Bill Pulte has previously indicated that both Fannie Mae and Freddie Mac should prepare to consider crypto as part of consumer reserves.
“Token-backed mortgages are a major first step to unlocking homeownership for the younger generations that have struggled with barriers to saving for a traditional down payment,” said Max Branzburg, Coinbase head of consumer and business products in a press release.
The policy will apply to certain well-documented crypto assets held on regulated exchanges, with underwriting standards designed to account for the volatility and liquidity risks associated with digital currencies. The product is expected to allow borrowers to pledge their crypto holdings rather than liquidate them, enabling participation in the housing market without triggering taxable events or exiting digital asset positions.
Supporters argue the change could expand access to homeownership for borrowers with wealth held outside traditional financial systems, particularly younger households and technology-sector workers who have accumulated assets in crypto markets. However, the approach also raises questions about risk management and evolving regulatory oversight of cryptocurrency markets.
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