Bitcoin
March 26, 2026
Buying a home in the US is getting harder. Amidst this, some buyers are leaning on crypto to bridge this gap. Bitcoin-backed mortgages are now moving closer to the mainstream. This comes as Fannie Mae is prepping to support loans that allow borrowers to use Bitcoin (BTC) as collateral instead of cash for a down payment. This change shows both the growing crypto ownership and the ongoing affordability pressure in the housing market.
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Americans Can Use Bitcoin as Collateral Without Selling, But Risks Remain
The product is being introduced through a partnership between Coinbase and Better Home & Finance. Borrowers can pledge Bitcoin or USDC held on Coinbase while taking out a standard Fannie Mae-backed mortgage. The main appeal is simple, that buyers do not have to sell their crypto. This means avoiding capital gains tax and staying invested.
There is already noticeable evidence of demand. About 14% of US adults owned crypto in 2025, according to data from Gallup. Another survey from Redfin found that nearly 13% of younger buyers sold crypto to help fund down payments. For many, this new structure offers a way to access housing without liquidating assets.
Fannie Mae’s role is vital because of its size. It does not originate loans, but it buys and guarantees them, setting standards that much of the mortgage market follows. Its involvement could make crypto-backed mortgages more widely available over time. Max Branzburg, Coinbase’s head of consumer and business products, said,
“A lot of those crypto owners and investors have not been able to become homeowners. We haven’t really had the best way to service that need.”
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Where the Risks Come In
That said, the structure comes with trade-offs. Borrowers are effectively adding another layer of debt. Rates can be 0.5 to 1.5 percentage points higher than typical mortgages. This is happening in a market where affordability is already stretched. US home prices have climbed sharply over the past decade. JPMorgan expects prices to stay flat in 2026 rather than fall, with mortgage rates still above 6%.
The strain is seen in the data over the years. The National Association of Realtors’ affordability index has hovered near historic lows. This shows that median-income households are barely able to afford median-priced homes.
Crypto volatility is another factor. Bitcoin prices are still well below their recent peak. The asset is currently trading at $68,989.61, which is 45% below its all-time high of $126,198.07. This highlights the risk of relying on it as collateral.
Crypto-backed mortgages are not common yet. Fannie Mae’s involvement could bring them into the mainstream, particularly for buyers who have crypto but not much cash.
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