Coinbase and Better Mortgage Unveil Bitcoin-Backed Mortgages for Younger Americans

Coinbase and Better Mortgage have made Bitcoin-backed mortgages available to Americans. The service allows borrowers to use their Bitcoin holdings as collateral for a down payment, without having to sell them or face margin calls. This is in accordance with Fannie Mae guidelines.

The announcement comes after the funding of the first Bitcoin-backed mortgage in June by Coinbase and Better Mortgage. The companies hope to cater to younger homeowners who have Bitcoin holdings but may not have enough liquidity to purchase a home.

According to Chief Technology Officer Ziggy Jonsson at Better Mortgage, high interest rates, record home prices, and limited inventory have pushed the median age of first-time homebuyers to 40. By allowing Coinbase One members to pledge their crypto as collateral without selling it, the companies are opening a new path toward homeownership for this generation of borrowers.

Coinbase's head of financial services and loyalty products, Ben Shen, added that enabling borrowers to pledge their digital assets in the mortgage underwriting process is allowing crypto to be more useful and powerful in the real world. The service will also provide a rebate equal to 1% of the mortgage value, up to a maximum of $10,000.