Better Mortgage and Coinbase Unite for Crypto-Backed Mortgages
Better Mortgage, a subsidiary of Better Home & Finance (BETR.US), has partnered with Coinbase Global (COIN.US) to launch token-backed qualified mortgage products. This marks the first integration of crypto assets into the traditional mortgage system.
The product design adheres strictly to Fannie Mae guidelines, ensuring it is a standard qualified mortgage with a first-lien position. As part of this program, approved Coinbase One members will receive cashback equivalent to 1% of the loan amount, capped at $10,000. This cashback will be applied directly to closing costs in the form of a lender credit.
Borrowers are required to pledge Bitcoin or USDC stablecoins worth at least 250% of the down payment loan amount. These pledged assets will be deposited into a custodial account established by Better on Coinbase Prime. For example, for a property valued at $500,000, a borrower could pledge $250,000 worth of Bitcoin to secure a $100,000 down payment loan.
Ben Shen, Head of Financial Services and Loyalty Products at Coinbase, stated: 'By allowing borrowers to pledge digital assets within the mortgage underwriting process, we are enabling crypto assets to serve greater utility in the real world, both broadening pathways to homeownership and helping users retain their long-term investment positions.'