Coinbase Unleashes Bitcoin-Backed Mortgages on U.S. Homebuyers
Coinbase has expanded its Bitcoin-backed mortgage product to U.S. homebuyers through a partnership with Better Mortgage.
The product allows eligible borrowers to pledge their Bitcoin as collateral for a down payment, without having to sell it first. This is done by providing two loans at closing: a standard conforming mortgage and a second loan that funds the cash down payment, secured by the borrower's Bitcoin and a second lien on the property.
The amount of Bitcoin required for the down payment must be at least 250% of the down-payment loan. For example, if a borrower seeks $100,000 for the down payment, they would need to pledge roughly $250,000 in BTC.
Better holds the Bitcoin in its Coinbase Prime custody account until the mortgage is repaid or refinanced. Both loans use the same interest rate and amortization period, allowing borrowers to make one combined monthly payment.