Coinbase and Better Mortgage Expand Nationwide Bitcoin-Backed Mortgage Program

Coinbase and Better Mortgage have expanded their Bitcoin-backed mortgage program nationwide in the United States. This allows eligible homebuyers to use Bitcoin as collateral toward a down payment, rather than selling their cryptocurrency holdings or using cash savings.

The financing structure consists of two separate loans: a standard conforming mortgage underwritten according to Fannie Mae guidelines and a second loan secured by the pledged Bitcoin and a second lien on the property. The second loan provides the funds used for the cash down payment, with the collateral value equal to at least 250% of the down payment loan amount.

The program's terms specify that a decline in Bitcoin's market value does not trigger a margin call or forced liquidation, but liquidation is possible if a borrower remains delinquent on payments for 60 days. Foreclosure proceedings on the property begin separately at 180 days of delinquency.