Bitcoin Now Acceptable as Down Payment for US Homebuyers

A new mortgage product allowing homebuyers to use Bitcoin as collateral has been launched by Coinbase and Better Mortgage. The product combines a conventional home loan backed by Fannie Mae with a down payment loan secured through Bitcoin holdings.

Applicants must commit at least 250% of their requested down payment loan in Bitcoin, which is transferred into Better's custody account managed through Coinbase Prime.

The committed Bitcoin gets released back to the homeowner upon complete repayment or refinancing of the mortgage. Market fluctuations in Bitcoin price do not prompt margin calls, but if payment obligations go unmet for 60 days or more, Better Mortgage reserves the right to liquidate the collateralized Bitcoin.