Better Mortgage and Coinbase have made their bitcoin-backed mortgage product available to US homebuyers, allowing borrowers to pledge BTC as down payment collateral without triggering a taxable sale.
How the product works
The mortgage pairs a Fannie Mae-backed home loan with a separate down payment loan secured by bitcoin.
Both loans carry the same interest rate and amortization term and are repaid through a single monthly payment.
Borrowers must pledge BTC worth at least 250% of the down payment loan amount.
The pledged bitcoin is transferred to Better’s custodial account on Coinbase Prime and held there until the mortgage is fully repaid or refinanced.
Once paid off, 100% of the pledged BTC is returned to the borrower.
Volatility protections and liquidation rules
Day-to-day bitcoin price swings do not affect mortgage terms, and there are no margin calls triggered solely by BTC price declines.
However, Better can liquidate the pledged bitcoin if a borrower becomes 60 days delinquent on payments.
Coinbase One members are eligible for a 1% rebate from Better, capped at $10,000, which can be applied toward closing costs and fees.
Eligibility requirements
Applicants must be US residents with a verified Coinbase account in good standing and hold enough BTC to meet the collateral threshold.
Better handles all underwriting, closing, and servicing, while Coinbase provides the custodial infrastructure for the collateral transfer.
Borrowers remain subject to Better’s standard credit, income, and underwriting requirements.
The two companies first announced the product in March through an early-access program before opening it to the general public this week.
