Bitcoin-Backed Mortgages Live in US, No Immediate Margin Calls

Bitcoin-backed mortgages have gone live in the US, allowing homebuyers to use Bitcoin as collateral for down payments without selling their holdings. The product, offered by Better Mortgage and Coinbase, combines a conventional Fannie Mae-backed mortgage with a separate loan used to fund the down payment, which is secured by Bitcoin.

The structure of the product requires borrowers to pledge at least 250% of the down payment in Bitcoin, which is transferred to Better's custodial account on Coinbase Prime. The collateral remains until the mortgage is repaid or refinanced, subject to the loan terms. A decline in Bitcoin price does not automatically change the mortgage terms or force borrowers to provide additional collateral.

However, if a borrower becomes 60 days delinquent on payments, Better can liquidate the pledged Bitcoin to recover losses. This means that the collateral remains exposed to seizure if the homeowner fails to meet repayment obligations.

The product is available to U.S. residents with verified Coinbase accounts who meet Better's standard underwriting requirements. Eligible borrowers may also receive a 1% rebate from Better, capped at $10,000, which can be applied toward eligible closing costs and fees.