Home Buyers Can Now Use Bitcoin as a Down Payment in US: Here Is How It Works

Key Takeaways

• Fannie Mae greenlit crypto-backed mortgages: first time in history, per FHFA directive
• Dual-loan structure: conventional mortgage plus crypto-collateralized down payment loan
• No taxable event: Bitcoin pledged not sold; locked in Coinbase Prime custody for loan term
• 2.5:1 collateral ratio: $250,000 Bitcoin required for $100,000 down payment on $500K home

Fannie Mae has accepted its first crypto-backed mortgage product, operationalized through a partnership between mortgage lender Better Home & Finance and Coinbase, following a Federal Housing Finance Agency directive ordering Fannie Mae and Freddie Mac to integrate digital assets into mortgage risk assessments.

How the Dual-Loan Structure Actually Works

The mechanism is built on two loans operating simultaneously. The first is a standard conventional mortgage that complies with Fannie Mae rules and is eligible for...