Coinbase and Better Mortgage Unveil Bitcoin-Backed Home Loans

Coinbase and Better Mortgage have launched a Bitcoin-backed mortgage product for qualified US homebuyers, allowing them to secure down payment loans without selling their BTC.

The product uses a two-loan structure: one is a standard first-lien mortgage meeting Fannie Mae's conforming guidelines, while the other is a separate loan secured by the borrower's Bitcoin, providing the cash needed for the down payment.

To qualify, applicants must pledge BTC worth at least 250% of the loan down payment. Someone seeking $100,000 for a down payment would need to provide Bitcoin valued at no less than $250,000 when the collateral is posted.