Bitcoin Becomes Collateral in US Mortgage Market

Better Mortgage and Coinbase have expanded their Bitcoin-backed mortgage option to general availability for eligible US homebuyers. This product allows borrowers to use Bitcoin as collateral for a down payment while keeping the primary home loan tied to a Fannie Mae-backed mortgage.

The offering combines two linked loans: a Fannie Mae-backed home loan from Better and a separate down payment loan secured by Bitcoin. According to Coinbase, borrowers must pledge at least 250% of the down payment loan amount in BTC ($78,690.00), with the pledged Bitcoin transferred to Better's custodial account on Coinbase Prime.

Coinbase emphasizes that declines in the BTC price alone do not trigger margin calls or change mortgage terms. However, if a borrower becomes 60 days past due on payments, Better may liquidate the pledged Bitcoin.

The product is designed to evaluate crypto holdings directly, provided volatility controls and governance are in place. The rollout arrives during a period of increasing institutional attention to how digital assets could be treated within US mortgage risk models.