US Homebuyers Can Now Use Bitcoin as Down Payment Collateral with Better Mortgage and Coinbase

A new mortgage product has been launched in the US, allowing homebuyers to use Bitcoin as collateral for down payments. The product is offered by Better Mortgage and Coinbase, and it combines a conventional home loan with a distinct down payment loan secured through Bitcoin holdings.

Applicants must commit Bitcoin valued at no less than 250% of their requested down payment loan amount. This means that if someone wants to buy a $100,000 house with zero cash down, they would need to have at least $250,000 worth of Bitcoin locked up as collateral.

The committed Bitcoin is transferred into Better's custody account managed through Coinbase Prime. Upon complete repayment or refinancing of the mortgage, the Bitcoin collateral is released back to the homeowner.