Better Home & Finance Holding Company (NASDAQ: BETR ) and Coinbase (NASDAQ: COIN ) on Thursday announced the financing of Fannie Mae’s first Bitcoin-backed mortgage in the United States, marking what the companies called a pivotal moment in connecting the digital economy and home ownership.
The first loan was closed by Joe and Amy, a married couple in their 30s from Ann Arbor, Michigan, who used Bitcoin Holdings as collateral to help pay their bills instead of liquidating their companies. he said.
The pair pledged their cryptocurrencies through the security of Coinbase and received a matching loan through Bwino without paying capital gains tax or giving up their long-term access to Bitcoin assets.
“Buying our first home has always been a goal, but I wasn’t willing to give up ten years of investment to get there,” said the home buyer. “With this loan, I didn’t have to choose. We closed on our house and my Bitcoin stayed. We didn’t have to sell, we didn’t have to sell time, and we didn’t have to start investing again to meet our homeownership goals. That meant everything.”
Bitcoin as collateral for debt
The design has two distinct features. Borrowers receive first-time Fannie Mae loans of 15 or 30 years mortgage loan on goods only. A second, privately funded loan – secured by a Bitcoin or USDC contract – covers the amount that was paid off. All loans have the same interest rate and term, and combine into one monthly payment.
The pledged crypto currency is stored in Coinbase Prime for the lifetime of the loan and returned upon full repayment.
In short, the thing calls no boundaries. If the price of Bitcoin decreases, borrowers do not need to increase collateral, and market movements alone cannot trigger withdrawals. The guarantee is only at risk if the borrower falls at least 60 days in default of payment, in accordance with the period of prohibition of the closing of ordinary funds.
The product initially supports Bitcoin and USDC, with Bitcoin requiring collateral equal to 250% of the loan and USDC at 125%. Better CEO Vishal Garg has seen plans to expand the asset class to include tokens, fixed income, and other real estate assets.
The problem is direct
Better said 41% of pre-approved customers receive cash and credit but no repayments. That gap has widened as homeownership increases: the median age of first-time homebuyers in America has reached 40, up from 32 years ago, according to the National Association of Realtors.
The products are designed to help consumers whose wealth is based on digital assets rather than liquid funds or their savings accounts.
Control methods it was removed some in June 2025 instructions from the Federal Housing Finance Agency (FHFA) instructing Fannie Mae and Freddie Mac to recognize digital assets as a suitable collateral in the $18.5 trillion mortgage market.
The order laid the groundwork for this week’s announcement and product launch.
