Bitcoin Used as Collateral for Down Payments in New Mortgage Program

A new mortgage program launched by Better Mortgage and Coinbase allows homeowners to use their Bitcoin holdings as collateral for down payments. The product, which has attracted $360 million in pre-application volume since its public debut, requires a 250% collateral ratio. This means borrowers must pledge $2.50 in Bitcoin for every $1 of down payment.

Borrowers receive a traditional Fannie Mae-conforming home loan secured by the property itself, alongside a secondary down payment loan backed by their Bitcoin holdings and an additional property lien. The monthly payments cover both loans in a single combined bill.

It's worth noting that Bitcoin assets don't count toward mortgage qualification. Applicants must independently satisfy Fannie Mae's traditional criteria for income verification, credit scores, and debt-to-income ratios.