Coinbase Lets US Homebuyers Use Bitcoin as Collateral for Down Payments

Coinbase has partnered with Better Mortgage to offer U.S. homebuyers the option to use Bitcoin as collateral for down payments without selling their holdings.

The crypto-backed mortgage product became generally available on August 12, following an initial rollout and waitlist, and is open to eligible borrowers who are members of Coinbase One.

Borrowers can pledge their BTC to Better Mortgage, which will then provide a separate loan that supplies the cash required for the down payment. The Bitcoin remains in custody until the underlying down-payment loan is repaid or refinanced, at which point it is returned to the borrower subject to the loan terms.

To be eligible, borrowers must have at least $250,000 of Bitcoin, which can support a $100,000 down payment loan. This means that a borrower seeking $100,000 toward the down payment on a $500,000 home would need to pledge approximately $250,000 of BTC.