Better Mortgage Partners with Coinbase for Bitcoin-Backed Down Payment Loans

Better Mortgage and Coinbase have teamed up to offer homebuyers in the US a new way to fund their down payment using Bitcoin. The program, launched on August 26, allows buyers to take out two loans: one for the property itself and another to cover the down payment.

The second loan is secured by Bitcoin, which serves as collateral, along with a second lien on the property. According to Better's terms, $250,000 in BTC can be used to back a $100,000 loan for the down payment.

BTC is transferred to Better Mortgage's custody account at Coinbase Prime, where it remains until the collateral period ends. During this time, customers cannot sell or transfer their assets without prior consent.

The main risk cited in the program terms is default: if payments are not made on time, Better may liquidate the BTC held as collateral after 60 days of delinquency.