Bitcoin-Backed Mortgages Now Available to US Homebuyers
Better Mortgage and Coinbase have launched a bitcoin-backed mortgage product for US homebuyers. This innovative product allows borrowers to pledge BTC as down payment collateral without triggering a taxable sale.
The mortgage pairs a Fannie Mae-backed home loan with a separate down payment loan secured by Bitcoin. Both loans carry the same interest rate and amortization term, and are repaid through a single monthly payment.
Borrowers must pledge at least 250% of the down payment loan amount in BTC, which is transferred to Better's custodial account on Coinbase Prime and held until the mortgage is fully repaid or refinanced. Once paid off, 100% of the pledged Bitcoin is returned to the borrower.
Volatility protections prevent day-to-day price swings from affecting mortgage terms, but Better can liquidate the pledged Bitcoin if a borrower becomes 60 days delinquent on payments. Coinbase One members are eligible for a 1% rebate from Better, capped at $10,000, which can be applied toward closing costs and fees.