Cryptocurrency in the real estate sphere has been a cause célèbre since 2017 but has never really gained traction. The main obstacle is simple: Escrow and title companies cannot hold digital currency, and for it to be used in a purchase, it has to be converted to dollars first. And that creates a taxable event.
Recently, crypto has moved past the novelty stage. The question is no longer “Can I buy a house with Bitcoin?” It’s “How do I use my crypto position to qualify for a mortgage without selling it and triggering a tax event?” And Fannie Mae just answered that question.
Enter Fannie Mae
In March 2026, Fannie Mae announced it would back crypto-assisted mortgages for the first time through a partnership between Better Home & Finance and Coinbase. The structure uses two loans bundled into a single monthly payment: a conforming Fannie Mae mortgage and a second loan secured by crypto collateral.
Borrowers can pledge Bitcoin or USD Coin to fund a down payment without selling their crypto assets, which means they miss the capital gains tax that comes with selling a crypto position.
The collateral requirements vary by asset — $250 in Bitcoin for every $100 borrowed, or $125 in USDC for every $100 borrowed. Pledged crypto is held in custody by Coinbase with no margin calls triggered if prices fall; borrowers face liquidation risk only if they default on monthly payments for 60 days.
Sounds good but …
The reception has been mixed.
Fans argue the product allows younger generations to buy homes without selling appreciated digital assets they believe will continue to rise. This works if the buyer who owns crypto has conviction that their coins will outperform the 0.5 percent to 1.5 percent rate increase the loan carries.
For a Bitcoin holder watching their asset climb 100 percent in a good year, paying an extra point on a mortgage to avoid capital gains tax and keep the position open is a rational trade.
Critics point to a different kind of risk. The 250 percent overcollateralization means a borrower could have $200,000 in crypto wiped out alongside their home over the same missed payment. A conventional borrower who defaults loses the house.
A crypto borrower who defaults loses the house and the asset they were trying to protect. Senator Dick Durbin (D-IL), joined by Elizabeth Warren (D-MA) and Jeff Merkley (D-OR), warned the FHFA that the product launched “without any pilot, opportunity for public input, or public research into default risk” and that taxpayers would bear the losses.
For now
The product is real, but the jury is still out on who, how, and why the consumer will use it. The first loans have closed. The infrastructure is in process. Fannie Mae answered the question the industry has been asking since 2017.
That’s the shift. Not that crypto mortgages are mainstream. But the conversation about them is no longer hypothetical.
America Foy is a broker associate at The Grubb Co. Get connected on LinkedIn and Instagram.
