Better Mortgage and Coinbase Launch Nationwide Bitcoin-Backed Mortgages

Better Mortgage and Coinbase have launched their Bitcoin-backed mortgage product nationwide, allowing US homebuyers to use Bitcoin as collateral for a down payment without selling it. The product pairs a Fannie Mae-backed home loan with a separate down payment loan secured by Bitcoin (BTC), requiring borrowers to pledge BTC worth at least 250% of the down payment loan.

The pledged BTC is transferred to Better's custodial account on Coinbase Prime, and the two loans carry the same interest rate and amortization term. Borrowers can repay both loans through a single monthly payment, with the pledged BTC returned once the mortgage is fully repaid or refinanced.

However, if a borrower becomes 60 days delinquent on payments, Better can liquidate the pledged BTC. The product requires borrowers to be US residents with a verified Coinbase account and meet Better's credit, income, and other underwriting requirements.