Fannie Mae breaks new ground in mortgage lending by accepting cryptocurrency as collateral for down payments through a partnership with Better Home & Finance and Coinbase. This marks the first time the housing giant has embraced digital assets in the home loan process. Homebuyers can now pledge Bitcoin, Ethereum, Solana and stablecoins without selling them, avoiding capital gains taxes while securing mortgages. The initiative targets younger generations who hold significant crypto wealth but lack sufficient liquid cash for traditional down payments. However, borrowers take on additional costs since the crypto-backed down payment loan requires separate servicing alongside the primary mortgage. Pledged assets become illiquid during the loan period, though declining crypto values won't affect mortgage obligations if payments continue.
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