Bitcoin-Backed Mortgages Now Available Nationwide
Better Mortgage and Coinbase have rolled out their Bitcoin-backed mortgage product nationwide, allowing US homebuyers to use 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. Borrowers must pledge at least 250% of the down payment loan value in BTC, which is 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.
Bitcoin price declines alone do not trigger margin calls or changes to the mortgage terms. However, Better can liquidate the pledged BTC if a borrower becomes 60 days delinquent on payments.
The product was first announced in March and initially launched through an early-access program.