Borrowers can pledge crypto as collateral for a down-payment loan without selling. The crypto stays locked in escrow on regulated exchanges. You get the mortgage. Your Bitcoin keeps appreciating.
Better Home & Finance partnered with Coinbase to launch the first commercial crypto-backed mortgage in August 2026. Early approval rates hit 89% for qualified borrowers—higher than cash-down rates.
Selling Bitcoin triggers taxes up to 37% for high earners. Pledging it as collateral avoids liquidation entirely. Over a $1M Bitcoin position, that's $370K in deferred tax liability.
If your pledged crypto drops 25% in value, you face margin calls. Forced liquidation can trigger in severe bear markets. Early programs cap the risk, but borrowers must monitor positions.
Fannie Mae's move signals that other government-backed mortgage programs (FHA, VA) are likely to adopt similar rules. Institutional doors for crypto keep opening.
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