US Homebuyers Can Now Use Bitcoin as Collateral for Down Payments

Coinbase and Better Mortgage have made their Bitcoin-backed mortgage offering available to all US homebuyers, allowing borrowers to use BTC as collateral for a down payment without selling their cryptocurrency.

The product is designed to provide a solution for buyers who want to retain exposure to Bitcoin while securing a Fannie Mae-backed home loan. Borrowers take out a traditional Fannie Mae-backed mortgage alongside a separate down payment loan that is secured by Bitcoin, which is transferred to Better's custodial setup through Coinbase Prime.

The collateral requirement is designed to cushion volatility, with borrowers required to pledge BTC worth at least 250% of the down payment loan value. If the borrower becomes delinquent on payments for 60 days or more, Better may liquidate the pledged BTC.