Better Mortgage Opens Crypto-Backed Mortgages with Bitcoin as Collateral

Better Mortgage has launched its crypto-backed mortgage product, allowing US buyers to use Bitcoin as collateral for their home loan deposits.

The product involves two connected loans: a conventional mortgage that meets Fannie Mae's requirements, and a second loan secured by the borrower's Bitcoin. This second loan supplies the cash needed for the deposit and places a second claim on the property.

Borrowers must pledge 250% of the separate deposit loan in Bitcoin to access the product. For example, a buyer seeking a $100,000 deposit loan would need to pledge $250,000 in Bitcoin. The Bitcoin is held in Better's account on Coinbase until the borrower repays or refinances the loan.

Better says Ethereum and Solana will be accepted later, but for now, only Bitcoin is accepted as collateral. Borrowers can choose between 15-year and 30-year fixed terms and make one combined monthly payment.