Bitcoin-Backed Mortgages Now Available in US Through Better Mortgage
Better Mortgage and Coinbase have launched their Bitcoin-backed mortgage product, allowing US homebuyers to use their Bitcoin as collateral for a down payment without selling it.
The product pairs a Fannie Mae-backed home loan with a separate down payment loan secured by Bitcoin (BTC). Borrowers must pledge BTC worth at least 250% of the down payment loan, which is then transferred to Better's custodial account on Coinbase Prime.
The two loans carry the same interest rate and amortization term and are repaid through a single monthly payment. The pledged BTC is returned once the mortgage is fully repaid or refinanced, subject to the loan terms.
Borrowers must be US residents with a verified Coinbase account and meet Better's credit, income, and other underwriting requirements. Coinbase One members are eligible for a 1% rebate from Better, subject to a $10,000 cap, that can be used toward closing costs and fees.