Bitcoin-Backed Mortgages Now Available for U.S. Homebuyers

Better Mortgage and Coinbase have launched a bitcoin-backed mortgage product for U.S. homebuyers, allowing them to pledge Bitcoin as collateral without converting it into cash.

The product combines a Fannie Mae-backed home loan with a separate down payment loan secured by Bitcoin, requiring at least 250% of the down payment value in pledged Bitcoin.

The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to consider treating cryptocurrency on U.S.-regulated exchanges as an asset in mortgage assessments, aiming for implementation by June 2025.

Borrowers can pledge Bitcoin worth at least 250% of the down payment loan, with the collateral transferred to Better's custodial account on Coinbase Prime. The structure pairs two loans, a Fannie Mae-backed mortgage and a separate loan for the down payment, both carrying the same interest rate and amortization term.

The pledged Bitcoin is returned once the mortgage is fully repaid or refinanced, subject to the loan terms. Price declines in Bitcoin alone do not trigger margin calls or changes to the mortgage terms. However, Better can liquidate the pledged Bitcoin if a borrower becomes 60 days delinquent on payments.