Fannie Mae, the company managing $4.1 trillion in mortgages, is working with Coinbase and Better Home & Finance to allow people to use cryptocurrency for home payments.
They are going to let homebuyers use cryptocurrencies like Bitcoin and USDC to help pay for a house. This means people can keep their cryptocurrency and still get a mortgage from Fannie Mae for a tenure ranging from 15 to 30 years.
Under the proposed plan, homebuyers will take two loans. One is a mortgage, and the other is a special loan that uses cryptocurrency to cover the down payment.
This way, people do not have to sell their cryptocurrency and do not have to pay taxes on it. However, it does cost a bit more to borrow money this way.
As long as people keep making their payments, they do not have to worry about selling their cryptocurrency if its value goes down. Because this is a more complicated and risky way of borrowing, interest rates may be slightly higher than usual.
Fannie Mae and its partners want to make it easier for people who hold cryptocurrencies and are hesitant to sell them to buy a house.
Experts believe that adoption may remain limited for now, as lenders are still figuring out how to manage the risks and regulations around using cryptocurrency.
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