Fannie Mae Move could bring crypto buyers into the market

Fannie Mae is preparing to accept crypto-backed mortgages for the first time, a move that could bring digital assets further into mainstream home financing.

The new product – developed by Better and Coinbase – allows buyers to pledge cryptocurrencies, such as Bitcoin or USD Coin, to fund a down payment, rather than selling those assets. The Wall Street Journal reported on Thursday.

For agents, the shift could potentially expand the buyer pool, especially among clients who own significant wealth in crypto but don’t have liquid cash or traditional securities for a down payment.

Borrowers looking to take advantage of the new offering would take out a standard conforming mortgage that could be sold to Fannie Mae, in addition to a second loan backed by their crypto. That second loan essentially replaces the cash down payment.

The structure allows buyers to maintain exposure to crypto markets – avoiding potential capital gains taxes or missed profits – while still qualifying for financing. But it also increases costs because borrowers have two loans, with rates that can be up to 1.5 percentage points higher than standard mortgages, according to the researchers. The Wall Street Journal.

Fannie Mae does not originate loans, but it sets the underwriting standards used in much of the mortgage market. The adoption of crypto-backed structures could signal broader legitimacy for a product that has thus far remained niche.

According to Gallup, about 14 percent of U.S. adults owned cryptocurrency by 2025, and nearly 13 percent of Gen Z and Millennial buyers have sold crypto to help finance home purchases, according to a 2025 Redfin survey cited by The Wall Street Journal.

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