Bitcoin Now Eligible for $250k Down Payments in US Mortgage Market

On August 26th, Better Mortgage and Coinbase announced that Better's token-backed conforming mortgage had reached general availability. This product allows homebuyers to use up to $250k in Bitcoin as a down payment without triggering margin calls or forced selling.

The loan structure does not secure the primary mortgage with Bitcoin, but instead requires borrowers to take two separate loans from Better: one for the standard first mortgage and another for the cash down payment. The second loan is secured by pledged Bitcoin and a second lien on the property.

Under current product terms, Bitcoin carries a 40% advance rate, equivalent to a 250% collateral requirement. This means that $250k in BTC can support a $100k down-payment loan. However, Better's program terms state that advance rates can change without notice, so these figures describe the published structure rather than a guaranteed offer for every applicant.

The borrowed Bitcoin is transferred to Better Mortgage's custodial account on Coinbase Prime and remains there throughout the pledge period. The borrower keeps economic exposure to the Bitcoin but gives up normal control and liquidity.