Overview
- A partnership announced Thursday between Coinbase and Better lets borrowers pledge Bitcoin or USDC to secure a down‑payment loan alongside a conforming Fannie Mae mortgage without selling their holdings.
- The two‑loan design keeps the home mortgage standard while the crypto‑secured loan supplies the down payment and avoids a taxable sale.
- Rates on the crypto‑secured portion are about 0.5 to 1.5 percentage points higher than typical 30‑year pricing, with no margin calls and collateral at risk only after 60 days of missed payments.
- Coinbase provides custody for pledged assets and Better originates and services the loans, with an initial rollout planned within the next three months.
- Fannie Mae’s role matters because it buys and guarantees conforming mortgages at scale, which can turn niche crypto lending into a product other lenders and investors can adopt.