Coinbase and Better Mortgage Unveil Bitcoin-Backed Mortgages in US

Better Mortgage and Coinbase have launched their Bitcoin-backed mortgage product for US homebuyers. The product allows borrowers to pledge their Bitcoin as collateral for a down payment without selling it, providing an alternative to traditional financing options.

The mortgage combines a Fannie Mae-backed home loan with a separate down payment loan secured by Bitcoin (BTC). Borrowers must pledge BTC worth at least 250% of the down payment loan, which is then transferred to Better's custodial account on Coinbase Prime. The two loans have the same interest rate and amortization term, and are repaid through a single monthly payment.

The pledged BTC is returned once the mortgage is fully repaid or refinanced, subject to the loan terms. However, if a borrower becomes 60 days delinquent on payments, Better can liquidate the pledged BTC. This means that borrowers do not have to worry about margin calls due to Bitcoin price fluctuations.

The product comes amid broader efforts to incorporate digital assets into US mortgage underwriting. In June 2025, the Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to consider cryptocurrency held on US-regulated centralized exchanges as an asset in single-family mortgage risk assessments.