Better and Coinbase Launch Bitcoin-Backed Mortgages for US Homebuyers

Better Mortgage and Coinbase have officially rolled out a mortgage product that allows US homebuyers to use Bitcoin as collateral for their down payment instead of selling it outright. The offering pairs a standard Fannie Mae backed home loan with a separate down payment loan secured by Bitcoin holdings, with both loans sharing the same interest rate and repaid together through one monthly payment.

How the Collateral Works

Borrowers need to pledge Bitcoin worth at least 250% of the down payment loan amount, which gets transferred into a custodial account managed through Coinbase Prime. Simply having Bitcoin’s price drop won’t trigger a margin call or alter the mortgage terms, but if a borrower falls 60 days behind on payments, the pledged Bitcoin can be liquidated. Once the loan is paid off or refinanced, the Bitcoin gets returned to the borrower.

Part of a Bigger Shift in Mortgage Lending

This launch follows a 2025 directive from the Federal Housing Finance Agency instructing Fannie Mae and Freddie Mac to explore counting cryptocurrency held on regulated exchanges as an asset in mortgage risk evaluations. Other lenders, including Newrez, have already started factoring crypto holdings into loan applications as well.