Better Mortgage and Coinbase Expand Crypto-Collateralized Home Loans

Better Mortgage and Coinbase have expanded their partnership to offer Bitcoin-collateralized home loans to general customers in the United States. This product allows homebuyers to secure down payments without selling their Bitcoin, holding them exposed to price fluctuations throughout the purchase process.

The mortgage provider combines two types of loans on a single property: a conventional qualified mortgage that meets Fannie Mae standards and a separate loan collateralized by Bitcoin. Both loans have the same interest rate and repayment term, with borrowers making a single monthly payment.

Borrowers must pledge at least 250% of the down payment loan amount in Bitcoin, for example requiring $250,000 worth of Bitcoin for a $100,000 down payment loan. The collateral is held until the loan is fully repaid or refinanced and then returned according to contract terms.

Additionally, Coinbase One members are eligible for a lender credit equal to 1% of the mortgage amount, capped at $10,000, which can be applied toward closing costs and other expenses. The pre-registration waitlist has accumulated potential loan volume exceeding $260 million, with 76% of registrants being Coinbase One users.