$4 Trillion mortgage lender Fannie Mae to accept Bitcoin

Significant Policy Shift

The shift accelerated in 2025 amid growing institutional interest in crypto. Regulators and housing agencies began evaluating how digital assets could fit into mortgage underwriting frameworks. This environment helped pave the way for crypto-backed mortgage experiments involving fintech lenders and custody providers.

For more than a decade, Fannie Mae maintained a conservative stance on digital assets. Its 2022 selling guide allowed virtual currency for mortgage-related costs only after conversion into U.S. dollars. Funds also had to be held in a regulated bank account. This effectively prevented the direct use of Bitcoin as collateral.

A spokesperson for Better Home & Finance said the program is designed to “expand access to homeownership for crypto-native borrowers while maintaining compliance with existing mortgage standards.”

Fannie Mae Bitcoin Collateral: Before vs After

Limitations and Market Context

Fannie Mae has not yet published detailed underwriting guidelines for the program. Key details remain unclear, including how Bitcoin collateral will be valued, applicable loan-to-value ratios, and liquidation procedures during periods of market volatility.

Longer-term questions also remain unresolved. These include whether the Federal Housing Finance Agency (FHFA) will introduce volume caps or additional risk-weighting for crypto-backed loans, how such products could influence mortgage interest rates, and whether Freddie Mac or other major lenders will introduce similar offerings. The program’s ability to scale beyond an initial pilot may depend on regulatory clarity and market stability.

The development comes as crypto firms expand into traditional financial products. Mortgage providers and fintech lenders have experimented with crypto-backed loans for several years, though most operated outside the conforming loan system. Integration with Fannie Mae standards could expand access to mortgage credit, but risks remain around asset volatility, regulatory oversight, and collateral management during market downturns. Early adoption metrics and lender participation will likely shape the program’s trajectory.

What Readers Should Watch Next

• Program rollout timeline: Exact launch date when the first Fannie Mae-conforming loans accepting Bitcoin and USDC as collateral become available through Better Home & Finance.
• Early adoption metrics: First-month loan volume, number of borrowers pledging crypto, and average size of Bitcoin or USDC collateral used.
• Freddie Mac’s response: Whether the other $4 trillion housing finance giant follows suit with its own crypto-collateral program.
• Broader lender reaction: Any announcements from traditional banks or additional mortgage originators expanding similar Bitcoin-backed options.