Better Mortgage has teamed up with Coinbase to offer home loans backed by Bitcoin or USDC collateral, with Fannie Mae providing the conforming guarantee. The first loan closed this week for a couple in Ann Arbor, Michigan — marking what the companies call the first Fannie Mae-insured mortgage in the U.S. secured by Bitcoin.
How the collateral works
The borrower puts up Bitcoin or USDC as collateral, and the digital assets sit in custody for the life of the loan. There are no liquidation triggers or margin calls — the collateral stays put. Better Mortgage handles loan servicing; Coinbase runs the digital-asset infrastructure and keeps custody.
First borrower and loan structure
The Ann Arbor couple is the first to close under the program. The loan itself is a standard conforming mortgage that Fannie Mae will guarantee, giving the lender a backstop. The terms of the specific loan were not disclosed, but the product is designed to let borrowers access home equity without selling their crypto.
Nationwide rollout and waitlist
Better Mortgage has an open waitlist and expects to launch nationwide this summer. Based on initial signups, the company projects $250 million in loan volume. The product is slated to expand to other digital assets over time, including tokenized stocks.
The partnership plugs crypto collateral directly into the conventional mortgage market — something Fannie Mae's backing makes possible. It gives bitcoin holders a way to borrow against their holdings without triggering a taxable sale or worrying about forced liquidation. The real test will be how fast borrowers sign up and how the secondary market treats these loans.
Better Mortgage plans to open the product to more borrowers in the coming weeks. The waitlist is already live.
