"Fannie Mae is preparing to support a new type of mortgage that allows borrowers to use cryptocurrency as collateral. This initiative marks a significant step in bringing digital assets into mainstream housing finance."
"Under the new structure, homebuyers can pledge crypto holdings such as bitcoin or USDC instead of selling assets to fund a down payment, allowing them to maintain market exposure."
"The loans will be issued as conforming mortgages backed by Fannie Mae, following the same standards and protections as traditional home loans, adding credibility to the crypto mortgage market."
"The new model aims to change the behavior of borrowers who previously sold crypto to fund down payments, allowing them to use their holdings as collateral instead."
Fannie Mae is introducing a mortgage option that permits borrowers to use cryptocurrency as collateral, developed in collaboration with Coinbase and Better Home & Finance. This initiative allows homebuyers to pledge crypto assets like bitcoin or USDC instead of liquidating them for down payments, thus avoiding capital gains taxes. The loans will be conforming mortgages backed by Fannie Mae, ensuring they meet traditional loan standards. This move reflects growing acceptance of digital assets in housing finance, supported by the Federal Housing Finance Agency's guidance.
Read at news.bitcoin.com
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