Cryptocurrency-backed mortgages have officially arrived in the American housing market, and so have the criminals looking to exploit them.
The lending product itself is legitimate, but every financial innovation creates openings for criminals looking to exploit confusion and urgency.
Your clients are already hearing about this, and they’ll look to you to separate fact from hype. In this article, we will break down what consumers and agents need to know, what even savvy crypto users might be missing and three takeaway steps that agents need to do before they start working with crypto.
Fast forward
On March 26, 2026, Better Home & Finance and Coinbase announced what Coinbase described as the first crypto-backed conforming mortgage solution. On June 4, 2026, the companies closed their first mortgage transaction, helping buyers in Ann Arbor, Michigan, purchase a home by pledging cryptocurrency instead of selling it.
As of Aug. 26, 2026, Coinbase and Better Mortgage announced that its token-backed conforming mortgage product was available to the general public. Before public availability, the waitlist had a projected loan value of $260 million.
Two recent developments explain the surge in attention. The Better and Coinbase program pairs a traditional conforming first mortgage with a separate private loan secured by pledged crypto to help fund a down payment.
Separately, in June 2025, Federal Housing Finance Agency Director William J. Pulte directed Fannie Mae and Freddie Mac to study whether verified cryptocurrency held on regulated U.S. exchanges could eventually count as a reserve asset during underwriting. That review is still underway, and no final standards have been adopted.
That’s where mistakes happen. Crypto-backed mortgages don’t create new scams. They give criminals new ways to run what already works.
What consumers need to know
For crypto-rich, cash-poor buyers, this product may offer a path to homeownership without having to sell crypto and trigger a tax hit. But it also puts them in a high-risk digital environment, and agents need to be ready to walk them through it.
Here are four rules to know before pledging crypto as collateral:
- The risk-based discount: Crypto assets may be discounted and subject to eligibility standards during underwriting. Verify the exact loan-to-value treatment with your lender. Be skeptical of anyone promising full face-value credit.
- The custody requirement: Cold wallets and private DeFi accounts generally aren’t allowed. Cryptocurrency generally must remain in an approved U.S.-regulated custodial account.
- Beware of ‘verification’ requests: Scammers send fake links asking borrowers to “verify” wallets or transfer assets. Never click links in unsolicited messages. Access your exchange only through the official site or app.
- Understand exactly when pledged cryptocurrency could be liquidated: Pledged collateral isn’t subject to margin calls while payments stay current, but confirm all liquidation and default terms with your lender before closing.
The threats agents are missing
Good news: No widespread fraud pattern linked specifically to crypto-backed mortgages has emerged yet. That doesn’t mean criminals are waiting. They adapt quickly to every new financial product. The $260 million waitlist expands the pool of potential victims. Preparing now beats reacting later.
Deepfake impersonation during closing: The FBI’s Internet Crime Complaint Center logged 22,364 AI-related complaints in 2025, its first year tracking them, totaling nearly $893 million in losses.
Fraudsters now clone voices, create convincing fake video calls, and impersonate lenders or title professionals, sometimes using nothing more than a short audio clip found online. If a lender calls with updated instructions, hang up and call back on a verified number. If a buyer gets revised wire instructions by email, verify independently before acting. The real weapon here isn’t technology; it’s manufactured urgency and trust.
Business email compromise: This scheme generated about $3.04 billion in reported losses in 2025. Crypto transactions add documentation and verification steps, which increase the risk of impersonation. Strong defenses include multi-factor authentication, passkeys or strong passphrases, updated software, reputable antivirus protection, business-domain email accounts, and ongoing employee education.
The fake “urgent verification” scam: Criminals exploit closing-deadline stress with AI-generated messages claiming a borrower’s crypto has been frozen or needs immediate re-verification, hoping to pressure victims before they think to check. Stop, verify independently, and contact your lender or agent first.
Brokerages that fail to educate clients about wire fraud and impersonation increase their own liability exposure.
3 takeaway steps
Here are three things you can do to protect your clients and yourself:
- Make verbal call-back verification non-negotiable for wire transfers or any change to financial instructions.
- Set expectations with clients early, before they encounter custody rules or verification procedures for the first time.
- Treat cybersecurity training as a professional standard, not an afterthought. NAR and cybersecurity professionals consistently recommend consumer education and independent verification as the strongest fraud-prevention tools available.
Frequently asked questions
Here are a few FAQs to help guide you:
- Can buyers use crypto to qualify for a conventional mortgage? Not directly. It funds a separate down-payment loan, not the primary mortgage. FHFA is still studying whether verified holdings could count as reserve assets. Coinbase One members can now apply for extended services, including standard mortgages, HELOCs and refinances through eligible Better mortgage products.
- What restrictions should buyers understand first? The four rules above: discounts can reduce the credit crypto is worth, cold wallets generally aren’t allowed, verification requests should always be checked independently, and liquidation only becomes a risk after payments lapse.
- What’s the most important fraud-prevention step? Independently verify any request involving money or changed instructions, using a trusted phone number or website, never one from the message itself.
Bottom line
Crypto-backed mortgages are the next evolution in home financing, and the first closing is already behind us. Like every innovation before it, this one opens the door for fraudsters to exploit unfamiliar technology and consumer trust.
The agents who protect their clients best won’t simply understand the loan product. They’ll understand where criminals are most likely to strike, teach clients how to verify every financial request, and build those habits long before closing day.
Money Matters Month is here. All September, Inman is focused on the financial side of real estate — the part nobody teaches you when you get your license. How to budget through lean times, protect your profits when business is good and find new ways to grow your bottom line no matter what the market is doing.
Tracey, the Safety Lady” Hawkins is the CEO of Safety and Security Source and founder of Real Estate Safety University. Hawkins is a former agent, safety instructor, international real estate safety expert and generative AI cybersecurity expert for end users.
