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Better launches Bitcoin-backed mortgages with Coinbase
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Better launches Bitcoin-backed mortgages with Coinbase

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  • Better and Coinbase launched a Bitcoin-backed mortgage product for US homebuyers.
  • Borrowers can use Bitcoin as collateral for a separate down payment loan.
  • The product requires Bitcoin worth at least 250% of the down payment loan.

Better and Coinbase launched a mortgage product that lets US buyers use Bitcoin (CRYPTO:BTC) for down payments.

The product combines a Fannie Mae-backed mortgage with a separate Bitcoin-backed loan for the down payment.

Borrowers must pledge Bitcoin worth at least 250% of the down payment loan.

The pledged Bitcoin moves to Better’s custodial account on Coinbase Prime and remains there during the loan.

Bitcoin price falls alone do not trigger margin calls or change the mortgage terms, but Better can sell the Bitcoin after 60 days of missed payments.

Borrowers must live in the US, have a verified Coinbase account and meet Better’s credit and income rules.

The companies first announced the product in March through an early-access programme as US lenders increased their use of crypto in mortgage assessments.

At the time of reporting, Bitcoin price was $78,722.44.

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