Coinbase and Better Mortgage Launch Bitcoin-Backed Home Loans

Coinbase and Better Mortgage have announced that they will begin offering home loans secured by Bitcoin (BTC) to the general public, starting on August 26.

The loan program allows borrowers to use their BTC as collateral for a portion of the down payment, but it's not a single-loan product. Instead, it combines two loans: a conforming mortgage that meets Fannie Mae's standards and a second loan that uses the borrower's BTC as collateral.

The BTC collateral can be stored in a custodial account provided by Coinbase Prime, which is a service for institutional investors. Borrowers who complete their loan and pay off their mortgage within 60 days will have their BTC returned to them.

Coinbase One members are eligible for an offer that allows them to use up to $16,000 of their loan proceeds as a credit towards closing costs, provided they pass Better Mortgage's underwriting process and complete the loan application.