- Better Mortgage and Coinbase have launched a Bitcoin-backed mortgage product for US homebuyers, allowing them to pledge BTC as collateral for a down payment without selling it.
- Borrowers must pledge Bitcoin worth at least 250% of the down payment loan; price declines alone do not trigger margin calls, but liquidation can occur after 60 days of delinquency.
- The product pairs a Fannie Mae-backed home loan with a separate down payment loan secured by Bitcoin, both with the same interest rate and amortization term.
- The move follows a June 2025 FHFA directive to Fannie Mae and Freddie Mac to consider cryptocurrency held on US-regulated exchanges as an asset in mortgage risk assessments.
On Wednesday, Better Mortgage and Coinbase announced the general availability of their Bitcoin-backed mortgage product, allowing US homebuyers to pledge Bitcoin as collateral for a down payment without selling it. The product pairs a Fannie Mae-backed home loan with a separate down payment loan secured by Bitcoin, requiring borrowers to pledge BTC worth at least 250% of the down payment loan amount.
According to Coinbase’s Help Center, the two loans carry the same interest rate and amortization term, repaid through a single monthly payment. The pledged Bitcoin is returned once the mortgage is fully repaid or refinanced, subject to loan terms.
Bitcoin Price declines alone do not trigger margin calls or changes to mortgage terms. However, Better can liquidate the pledged BTC if a borrower becomes 60 days delinquent on payments, according to Coinbase.
Borrowers must be US residents with a verified Coinbase account and meet Better’s credit and underwriting requirements. Coinbase One members are eligible for a 1% rebate from Better, capped at $10,000, for closing costs.
The launch follows a June 2025 directive from the Federal Housing Finance Agency ordering Fannie Mae and Freddie Mac to consider cryptocurrency held on US-regulated centralized exchanges as an asset in mortgage risk assessments, according to a post by William Pulte. The directive also required the enterprises to consider risk-mitigation measures for crypto’s volatility.
Other US lenders are also moving in this direction. Newrez announced in January it would recognize certain cryptocurrency holdings when evaluating mortgage applications starting in February.
The expansion of Bitcoin-backed home financing comes as US housing prices remain near historic highs. The median sales price of a new US home was about $400,000 in 2026, according to data from the US Census Bureau and HUD compiled by the Federal Reserve Bank of St. Louis.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
