Coinbase and Better Home & Finance have funded the first bitcoin-backed mortgage in the United States, completing the initial loan and confirming plans for a nationwide rollout by summer.
The product lets borrowers access home financing without liquidating their crypto holdings.
How the mortgage structure works
The product combines two loans that close simultaneously.
One follows standard Fannie Mae conforming mortgage rules, while the second uses bitcoin or USDC to fund the down payment.
Both loans share the same rate and repayment schedule, so borrowers make a single combined monthly payment.
Example mortgage
As a concrete example, a $500,000 home might involve a $400,000 traditional mortgage paired with a $100,000 crypto-backed down payment loan.
Bitcoin loans require roughly a 2.5-to-1 collateral ratio, while USDC requires 1.25-to-1.
The pledged crypto is held in custody through Better’s account on Coinbase and stays locked for the full loan term.
Both 15-year and 30-year fixed-rate options are available, with loan limits following Fannie Mae regional standards.
First loan closed for Michigan couple
The inaugural loan went to a couple in Michigan who used their bitcoin holdings instead of selling assets to cover a down payment.
They avoided capital gains taxes and kept exposure to future bitcoin price movements.
Strong early demand ahead of national launch
Better reported a waitlist representing roughly $250 million in potential loan volume before the nationwide release.
More than half of interested borrowers plan to purchase a home within six months, and around 76% already hold Coinbase accounts.
California, New York, and Florida show the highest applicant interest, and Better noted that 41% of pre-approved clients lack sufficient cash for a down payment.
