In a historic industry first, a major U.S. mortgage provider will allow cryptocurrency to be used as collateral for home loans. According to an exclusive report, Better Home & Finance and Coinbase will announce a new mortgage product where buyers can pledge crypto holdings for loans backed by Fannie Mae. The exact eligible cryptocurrencies and collateral valuation methods remain unclear. This shift could unlock hundreds of billions in liquidity, as users may not need to sell digital assets to finance a home.
In a historic first, a major U.S. mortgage provider will allow users to collateralize mortgages with cryptocurrencies. One of the leading mortgage-finance companies in the United States will soon begin accepting mortgages backed by cryptocurrencies.
This is unprecedented and a first for the industry, marking yet another step toward mainstream financial transactions. According to an exclusive report, the mortgage company Better Home & Finance, as well as the largest U.S.-based cryptocurrency exchange, Coinbase, will announce a new mortgage product. This product would allow home buyers to pledge their crypto holdings when getting a mortgage backed by Fannie Mae.
At the time of this writing, it is not clear exactly which cryptocurrencies will be eligible for these products. It is also not clear how the collateral itself will be valued.
That said, the news marks a fundamental shift in how crypto is perceived in the country. It potentially unlocks hundreds of billions in liquidity, as users will no longer need to sell their digital assets to finance a home.
